US$ 265m deals for Zim
ZIMBABWE is expected to reap massive returns from three projects worth a combined US$265,4 million that will be under discussion for possible funding at the Africa Investment Forum Market Days 2022 that begins here today.
The projects, classified as public-private partnerships, private and project finance, will open up the mobilisation of international joint ventures and other resources.
President Mnangagwa, who arrived in Abidjan last night and was welcomed by Ivorian Vice President Tiémoko Meyliet Koné, is leading a high powered delegation of Cabinet ministers including Foreign Affairs and International Trade Minister Ambassador Frederick Shava, Finance and Economic Development Minister Professor Mthuli Ncube. Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka and Industry and Commerce Minister Dr Sekai Nzenza to the forum, at the invitation of the African Development Bank.
The forum is the largest transactional investment marketplace on the continent.
In an interview yesterday, Prof Ncube said: “The Africa Investment Forum Market Days brings together project promoters and investors, including policymakers at the level of head of states and ministers. So, we are here with His Excellency leading the delegation.
“As for Zimbabwe, we have three projects. We have a project in the steelmaking sector, where a company that wants to expand and produce more steel, is looking for investors. The second one is in the dairy sector, where investors want to expand milk herds and production, and also beneficiation and processing because we are exporting. Again, they are looking for investors, and we will be meeting investors over there.”
Prof Ncube said the third project involved the upgrading of Forbes Border Post, which is critical for revenue collection, ease of movement and promoting intra-Africa trade between Zimbabwe and other countries.
The expected deals related to Integrated Steel Making, Sherwood Dairy Farms and the modernisation of Forbes Border Post, to assist trade facilitation on the eastern front of Zimbabwe.
The Forbes Border Post deal, valued at US$90 million, is a public-private partnership sponsored by the Border Development Consortium.
The purpose of the establishment of the consortium was to design, finance, construct and operate the land border post between Zimbabwe and Mozambique, which is the main gateway to and from five other countries, four of which are landlocked.
On completion, the project will provide a one-stop-border management post for the facilitation of trade, increase intra-Africa trade flows, and enhance revenue collection through information communication technology facilities.
Key stakeholders in the PPP are the ministries of Transport and Infrastructural Development, Local Government and Public Works, and Finance and Economic Development, and the consortium members.
The second deal, backed by Sherwood Dairy Farms and worth US$70
million, is aimed at bringing together New Zealand dairy genetics and local farming expertise.
Under the private project, an 11 000 dairy herd is envisaged to be achieved through a model replicable nationwide.
Raw milk processors in the country will benefit from the deal, with Nestle Zimbabwe having committed to take up 200 000 litres of milk daily.
The Steelmakers Limited-supported project finance venture, valued at US$105 400 000, involves the construction, set-up and installation of an integrated steel plant to produce about 300 000 tonnes of merchant mill-rolled products yearly.
A 43MW power plant is also expected. There is a huge market for steel products in Africa, with 37,4 million tonnes having been used on the continent in 2021, 19,9 million of which were imported. An estimated 93 percent of all steel imports into Africa in 2021 were from outside the continent.
At the Africa Investment Forum Market Days 2022, therefore, the Zimbabwean delegation will get an opportunity to interact with international investors in both public and private sectors and market the country, leveraging on the objectives of the investment platform.
Discussions at the forum are guided by its inclination towards the realisation of bankable projects within an enabling environment through nurturing of gainful interactions between the public and private sectors.
The platform that it creates to attract domestic and foreign investment in Africa, leading to bankable projects, capital injection and acceleration of financial closure to deals, would be crucial for Brand Zimbabwe, particularly as the country engages with the international community.