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Michael Magoronga, Midlands Correspondent
ZIMCOKE (Private) Limited, which is set to revitalise a coke plant within Ziscosteel, is set to take over part of the debt amounting to $225 million that the Government of Zimbabwe owes Germany Development Bank (KfW).
The company took over a coke oven within Ziscosteel in a $133 million deal viewed as the first steps of the revitalisation of the steel giant.
ZimCoke and Zisco signed an agreement of sale in 2017 where ZimCoke bought the coke-making assets of Zisco consisting of the plant and machinery, land and buildings, and associated infrastructure of coal handling and wagons.
Speaking at Ziscosteel plant in Redcliff recently, ZimCoke chief executive officer, Mr Bill More, said part of the deal also entails taking over part of the debt.
“A key component of the project has been ZimCoke taking over the KfW debt from Zisco. KfW is the German government development bank and this debt had ballooned to $225 million,” he said.
Mr More said both the Zimbabwean and German governments were involved in the process.
“The assistance of the German Embassy has been invaluable in this regard as has been the help from the Ministry of Finance,” said Mr More.
He said the deal will go a long way in easing Zimbabwe’s bilateral debts.
“This has had the added effect of relieving the Zimbabwean Government of a significant portion of its biggest bilateral debt,” said Mr More.
Germany is a member of the Paris Club, an informal grouping of creditor nations owed about $2,7 billion by Zimbabwe.
The country’s debt arrears amount to about $5,6 billion, which, if cleared, can unlock foreign funding from other countries.
Online Reporter