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Oliver Kazunga Senior Business Reporter
ECONOMIC commentators have welcomed a cash package by China to fund the country’s five- year economic blueprint – Zimbabwe Agenda for Sustainable Socio-economic Transformation (Zim-Asset) – saying this will enable the government to kick-start its economic revival efforts.
Funding has been a major hindrance to the implementation of programmes under Zim-Asset.
Zimbabwe needs at least $10 billion to successfully implement the economic blueprint.
On Tuesday, Chinese Ambassador to Zimbabwe Lin Lin, told delegates at a business conference in Harare that discussions between the two countries were underway on the provision of a financial package to fund Zim-Asset. It is hoped that if the discussions succeed Zimbabwe would securitise the loan using its vast mineral resources. In separate interviews yesterday, economic commentators hailed China and Zimbabwe for deepening relations.
“It’s a move in the right direction. It’s one of the moments we’ve to congratulate the Minister of Finance and Economic Development (Patrick Chinamasa) as the package will assist the economy. The cash package for Zim-Asset is much welcome and critical to the economy,” said economist Innocent Masauti.
He said the country was endowed with resources that have a potential to spur economic revival but efforts to resuscitate the economy were being threatened by funding challenges.
“We have the infrastructure but what is lacking for now is funding and the financial package by China for Zim-Asset will see the initial stages of projects spelt out in the Zim-Asset taking off.
“Projects under Zim-Asset have not taken off because of lack of funding and as we speak we are a year behind Zim-Asset,” he said.
Asked whether China would not fall in the same bracket with those countries that have not fulfilled their promises on Zimbabwe, Masauti said: “I have trust in China because in the past the Chinese have provided budgetary and other financial support to Zimbabwe and this could be because we have also allowed them to participate in our economy.
“And besides that, China because of its economy, has the capability to support other countries outside their continent and they have the necessary resources taking into account that their economy has emerged as one of the powerhouses in the world.
“Zimbabwe and China have always enjoyed cordial relations and this also puts my trust in the Chinese that they will provide funding for the Zim-Asset.”
Affirmative Action Group chief executive officer Dr Davison Gomo hailed the move by China on Zimbabwe.
He said it was natural that countries with cordial relations come to the aid of each other in times of need.
“If countries have mutual relations that creates better trade relations. The gesture shown by China on Zim-Asset can only be a step in the right direction if we complement it by ensuring that those critical sectors such as agriculture prioritised by Zim-Asset get back on track and create employment,” said Dr Gomo.
He added: “We need to ensure that if China releases the funding, the resources are channelled directly to the intended purpose as well as guarding against factors such as corruption which can collapse development under Zim-Asset. My fear is; do we have the strength and capacity to monitor that these funds are channelled into the projects that they have been sought for?”
An economic commentator Wendy Mpofu echoed similar sentiments as Masauti adding that China was Zimbabwe’s all-weather friend and was capable of availing the required funding.
Online Reporter