Work-In-Progress On P500m Credit Facility

| Monday August 9, 2010 00:00

This comes amid revelations that parliamentarians from the Lower and Upper Houses have ratified the Bippa with South Africa, which was signed early this year in June. Secretary for Economic Planning and Investment Promotion Desire Sibanda yesterday said his ministry was currently looking at Botswana's proposals.

He said Botswana has made its comments on the draft Bippa with Zimbabwe and his ministry was consulting with the Attorney General's office on the issue. Sibanda said the ministry would soon engage Botswana at senior official level to discuss the matter before it is finally presented to principals.

Unlike the Bippa with South Africa, which went through protracted discussions following differences over the land issue, Dr Sibanda said the Bippa negotiations with Botswana were expected to be smooth-sailing.

'The Bippa would facilitate the release of lines of credit and investment. More than 500 million pula (US$70 million) is set to be injected into this economy when the lines of credit are released.' He said this would go a significant way in easing the liquidity crisis in an economy where bank deposits totalled US$1,8 billion at the end of May this year.

The lines of credit would be availed to companies in manufacturing, mining and agriculture and this is projected to enhance economic co-operation and trade volumes between the two neighbouring states.

Sibanda said the Bippa with Botswana was very critical, as the country was one of Zimbabwe's major trading partners after South Africa. Government would soon carry out a publicity campaign to sensitise industry on the trade pact that Zimbabwe and South Africa signed, which has been ratified.

This could also help the country to access US$15 million lines of credit South Africa pledged to Zimbabwe and the restoration of a R2,65 billion facility which had been made available to this country pre-independence, but had been scrapped at the height of the economic instability. Expectations are that the trade agreement between Botswana and Zimbabwe would facilitate the pending trade agreement with several other countries.

The Bippa with Botswana is one of several that were mentioned by President Mugabe in his speech during the opening of the Third Session of the Seventh Parliament of Zimbabwe. The other Bippas that are expected to be brought to Parliament during the current session include those with Iran, India, Kuwait, Singapore and the Opec Fund.

The President said, globally, focus had now shifted from reliance on aid as a critical factor for development to investment, both domestic and foreign. He said the heightened mobility and intense competition for capital resources underlined the need to work 'assiduously' to attract investment. (Herald)