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Next year, the financier is also expected to issue $500 million worth of new shares to private investors, a move that will increase the bank’s capital levels to augment its capacity to make financial interventions in Africa.
Speaking during the Third Reconvened Extraordinary General Meeting of the bank in Harare on Saturday, Minister Moyo hailed AfreximBank for the provision of numerous credit facilities.
He said the bank had over the years provided substantial impetus to the growth and development of intra-and extra-African trade.
“Let me commend the African Export-Import Bank for its continued bold and proactive facilitation of trade and investment in Africa.
“On behalf of the Government of Zimbabwe, I wish to unreservedly express my heartfelt gratitude to the bank for having so far extended over $3 billion to Zimbabwean entities in key export and productive sectors namely, agriculture, manufacturing, mining, financial services and mobile telephone industries.
“Of equal importance are three recent facilities, namely: $150 million metals and minerals exports-backed facility, $50 million revolving guarantee support of migrant resistance and Diaspora bond issuance, among others and $100 million Zimbabwe Economy Trade Revival Facility,” he said.
He said the bank’s indispensable role in supporting economic recovery efforts in Zimbabwe dovetailed into initiatives as explained in the Medium Term Plan (MTP).
The MTP is anchored on restoring and transforming national capacities for sustainable economic growth and development, through full capacity utilisation, application of new technologies, and identification of new growth areas.
He said the adoption of the multi-currency system since 2009 had significantly transformed the macroeconomic landscape in the country.
He said this was despite the lack of balance of payments and budgetary support from a number of international financial institutions.
Minister Moyo said economic activity in Zimbabwe rebounded impressively to 5,4 percent in 2009, 9,6 percent in 2010 and 1,6 percent in 2011.
“The macroeconomic activity realised so far improved the operating environment which is presently contributing to a gradual but steady return of investors to Zimbabwe.
“Further improvements are evident in the level of industrial capacity utilisation which rose to over 40 percent, from an estimated 10 percent in 2009; the attainment of single digit year-on-year inflation rates of less than 6 percent; and the dissipation of adverse inflation expectations and taking steam off parallel market and rent seeking activities.”
He said in light of the fiscal constraints imposed by the multi-currency system, Government also adopted a cash budgeting system.
He said due to development constraints imposed by the country’s rising external debt burden, the Government adopted the Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy (ZAADDS).
Under ZAADDS the country will seek debt relief through traditional debt relief mechanisms while at the same time leveraging on natural resources to settle outstanding external debt obligations.
Despite challenges, Zimbabwe has secured offshore credit lines from mainly regional financial institutions.
The credit lines have largely been deployed to the recapitalisation of industries and the rehabilitation and development of infrastructure which had deteriorated over the past decade.
Minister Moyo said although boldand significant strides have been made since 2009, Zimbabwe’s economic growth momentum attained so far was declining.
In this respect, he said economic growth was projected to slow down to 4,4 percent this year, before marginally rebounding to five percent projected in 2013.
He said the dampening economic activity reflects the debilitating effects of emerging challenges such as growing import dependence, persistent power shortages, widespread company closures, low investor confidence and structural bottlenecks.
“These and other challenges have culminated in Zimbabwean products being uncompetitive on regional and international markets resulting in depressed export earnings, deepening of liquidity shortages, reduced aggregate demand for goods and services, burgeoning current account deficit and the slow-down in economic activity,” he said, adding that such developments also manifested themselves in lower than budgeted for fiscal revenues, thereby affecting Government operations.
“Relatedly, the widespread closure of companies, particularly in Bulawayo, Mutare and Harare is a presage of an impending economic downturn which negatively affects employment opportunities, and threatens to further impoverish the general Zimbabwean populace.”
Online Reporter