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Business Reporter
Zimbabwe’S economic recovery is set to receive a massive boost after Treasury on Tuesday indicated it was on the verge of concluding a “comprehensive financial aid package” with China. Speaking during the signing ceremony of a US$23 million infrastructure grant from China, Finance Minister Patrick Chinamasa said following a recent visit to Beijing to negotiate the package, the deal could be concluded within three months.
The comprehensive deal to be agreed on is not part of the US$23 million availed on Tuesday.
“During the visit, we agreed that the government of the People’s Republic of China and the Government of Zimbabwe are working towards a comprehensive financial package and committed ourselves to finalising the matter within three months,” said Minister Chinamasa.
Last week, a Ministry of Finance official, Mr Jonah Mushayi, told a business conference that Zimbabwe required US$27 billion for economic recovery through the implementation of the five-year Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim- Asset) policy.
Mr Mushayi said that Government would be approaching local and international donors to fund the implementation of Zim-Asset.
To this extent, one would assume that a “comprehensive aid package” would be significant to cover the funding requirements for at least the current year.
The 2014 National Budget of US$4,1 billion can hardly be looked upon to partly finance Zim-Asset as a large part of the expenditure is consumed by employment costs and operations.
The US$23 million grant, which was signed between Minister Chinamasa and Chinese Ambassador to Zimbabwe Mr Lin Lin, is expected to finance infrastructure construction in rural areas.
Minister Chinamasa said the grant would go towards the construction of clinics and primary and secondary schools in resettled areas.
The other projects to be funded by the grant include boreholes drilling and acquisition of meteorological equipment.
Online Reporter