adminThe bank is seeking investment opportunities in Zimbabwe through the establishment of venture opportunities with local firms. “The bank is looking at bank rolling projects to the tune of between US$1 million to US$2 million per project. The sectors targeted for investment by the bank are minerals, tourism, manufacturing and construction,” said a ZNCC official.
Local businesses are increasingly looking towards the Asian markets for capital raising as the local environment has remained largely illiquid, a situation that has been worsened by stumbling blocks that are hindering the country access to capital from traditional Western financiers.
A local business delegation led by the Ministry of Economic Planning and Investment Promotion recently visited Hong Kong and Singapore on a capital-raising initiative.
China has become a critical source of funding for the country, and recently offered loans worth around US$700 million. Official figures also show that State-owned industries are also increasingly reliant on Chinese funding with loans and lines of credit worth more than US$330 million having been registered between 2002 and 2007. China has become a more important trade partner but its market share is still modest, with 4 percent of imports and 3,4 percent of exports.
China has provided substantial financial support including US$200 million in lines of credit from China Export-Import Bank to finance agro-inputs and US$60 million for a local company, Farmers World, in 2007.
China’s largest direct investment was the takeover of the main ferrochrome exporter, Zimasco, by Sinosteel, while there was a large number of small – and medium-sized Chinese-owned businesses in mining, retail, cotton and tobacco trading.
Meanwhile, the ZNCC says it is expecting a Chinese business delegation in the capital before the end of this month as Chinese investors continue showing interest in opportunities available on the local market.
Online Reporter
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