Zim economic, political reforms get AfDB nod
CONTRARY to slanderous media touting against the country, particularly in Western capitals in efforts to derail progress, the African Development Bank (AfDB) has given Zimbabwe the thumbs up by committing to back its “hyper economic and political reforms”, which have seen investors expressing interest in funding projects valued at US$265,4 million that Harare presented at the Africa Investment Forum 2022 that ended in Abidjan, Cote d’Ivoire yesterday.
President Mnangagwa led the Zimbabwean delegation to the forum, the largest investment marketplace on the continent, at the invitation of AfDB president, Dr Akinwumi Adesina.
He arrived back home yesterday and was welcomed at Robert Gabriel Mugabe International Airport in Harare by Vice President Constantino Chiwenga, service chiefs and Senior Government officials.
Speaking at a discussion, which the President attended, organised by the Zimbabwe Investment and Development Agency (ZIDA) and AfDB during the Africa Investment Forum 2022 on Thursday, Dr Adesina expressed satisfaction with the Second Republic’s commitment to reforms, adding that the bank would re-look into the country’s risk assessment.
“Zimbabwe is not as risky as you think. You have a President who is committed to hyper economic, and political reforms,” he said.
“I hear that there are challenges, there are no limits to that. I have been to Zimbabwe.
“So, we are sending the AfDB chief risk officer. We will re-look into the risk assessment of Zimbabwe from the private sector so that we can allow greater investment to build into Zimbabwe as we look at our risk factor in the country.”
Dr Adesina said although Zimbabwe was attending the investment forum for the first time, he was alive to the many opportunities that the country offered.
“I know Zimbabwe. I want to tell everyone here that Zimbabwe is my home. There is political will in Zimbabwe. Zimbabwe is having economic reforms. I am leaving for Zimbabwe, and I know the story of Zimbabwe. I know the opportunities and potential of Zimbabwe.
“And, I know that nobody better than you can actually be here and tell the story of Zimbabwe. So, I want to thank you, President for coming. Let me say that since yesterday (Wednesday), we have been looking for various opportunities for Zimbabwe, because AfDB strongly supports Zimbabwe. As AfDB, we are going to swim side-byside with Zimbabwe.”
Dr Adesina’s sentiments come against the background of his visit to Zimbabwe in September this year when he met President Mnangagwa at State House in Harare, and formerly accepted the latter’s request to lead a debt clearance strategy, which was key for Zimbabwe to unlock fresh funding from international financial institutions (IFIs).
The investment forum, therefore, offered the two a follow-up opportunity to catch-up on events regarding the strategy.
Dr Adesina commended Zimbabwe on the issuance of investor development licences, of which 102 were renewed, adding that “one does not renew a licence in a country they do not want to be in.”
“So, the environment in Zimbabwe is good. Licensing and banking in Zimbabwe are good,” he said.
“Mr President let me assure you that I am going to Zimbabwe, and I am going to be the champion that I am proud to be”.
In championing the debt clearance strategy, Dr Adesina said he would engage former Mozambican President Joaquim Chissano.
Going forward, the AfDB president said the bank would engage Zimbabwe on bilateral investments.
“We are looking at 2023. We are renewing investment in Zimbabwe, and we are looking at collaborations in human capital, value chain, and climate change adaptation, and power supply,” Dr Adesina said.
On the three projects that Zimbabwe presented at the investment forum for possible funding, Dr Adesina said he was confident that all the three deals worth close to US$270 million would be funded, and position Zimbabwe for the breadbasket of Africa slot.
“Zimbabwe used to be and will still be the bread basket of Africa. I’m very confident about that. In summary, I am saying Zimbabwe is back on the world map.”
The projects, classified as public-private partnerships, private and project finance, opened up the mobilisation of international joint ventures and other resources.
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.
Backed by Sherwood Dairy Farms, the second deal worth US$70 million seeks to bring together New Zealand dairy genetics and local farming expertise.
Under the private project, an 11 000 dairy herd is envisaged to be achieved
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through a model replicable nationwide to increase milk production.
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. There will also be a 300MW power plant.
Steelmakers Limited chief executive officer, Dr Kalpesh Patel, confirmed the interest shown in the US$105 million steel-making deal, adding that further details would be available in due course.
In an interview yesterday, Finance and Economic Development Minister, Professor Mthuli Ncube, said investors at the Africa Investment Forum 2022 had shown a lot of interest in Zimbabwe.
“We were still in business meetings last night. We were there to support a pitch to investors from one of the companies that we have, which is the Sherwood Dairy Farms. They are trying to expand milk production in the country. As you know we consume something like 130 million litres now, but we can only produce about 90 million litres, meaning there is a gap.
“Clearly, this company will be coming to close this gap and will be welcome. This project was well-received by investors. The other two projects that were well received were the steel project, as well as upgrading of the Forbes Border Post,” Prof Ncube said.