Zim Asset needs $27bn to fund projects

Harare Bureau
ZIMBABWE requires at least $27 billion to fund Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) programme, with the bulk of the money earmarked for infrastructure projects, a senior Government official said yesterday. Speaking at the Confederation of Zimbabwean Industry Zim Asset workshop in Harare, acting director for Fiscal Policy and Advisory Services in the Finance and Economic Development Ministry  Jonah Mushayi said the government was looking at mobilising the money from the Diaspora, mortgaging of minerals and long term credit.

The government would also pursue joint ventures and public private partnerships. “The quantum of the resources needed for the implementation of the Zim Asset are estimated at $27 billion,” said Mushayi.

“This is quite a huge figure but over the planned period, by 2018 we hope to raise the money. The bulk of it has been earmarked for water and sanitation, transport, energy, ICT housing and social services.

“We have identified sources of funding which are harnessing Diaspora resources, domestic resource mobilisation, accessing external financing and the issue of debt relief.

“In terms of resource mobilisation we are aware that on December 19, last year Ministry of Finance unveiled a $4,1 billion budget broken down as follows, 73 percent on employment costs, non employment costs with and recurrent expenditures at  15 percent … while 12 percent on capital (projects). From this we have limitations. We have provided financing for some of the projects in the 2014 Budget and with the 12 percent, we cannot do much so we will continue to pursue the issue of joint ventures as our second option of financing, which can achieve greater mileage.”

Zim Asset is the government’s policy framework covering period between 2014 and 2018. The policy, which targets annual average growth of 7 percent, seeks to spearhead the turnaround and development of the economy in the next five years.

This will be largely driven by strong performance in mining, agriculture and the manufacturing sectors.  Mushayi added that the government would explore the possibility of financial assistance through bilateral agreements with countries in the region.