China to fund Zim-Asset projects From left: Minister Simbarashe Mumbengegwi, Minister Patrick Chinamasa and Minister Walter Mzembi
From left: Minister Simbarashe Mumbengegwi, Minister Patrick Chinamasa and Minister Walter Mzembi

From left: Minister Simbarashe Mumbengegwi, Minister Patrick Chinamasa and Minister Walter Mzembi

Lloyd Gumbo in Beijing, China
ZIMBABWE and China yesterday signed nine Memorandums of Agreement that will see the Asian giant funding viable productive and infrastructure projects.
The nine MoUs were signed here by government ministers from the two countries in the presence of President Mugabe and his Chinese counterpart, President Xi Jinping.

The agreements are a major shot in the arm for Zimbabwe, which has been battling to secure funding for its economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).

Zim-Asset has a dedicated section on infrastructure and utilities which outlines several major projects the government wants completed over the next five years.

Finance and Economic Development Minister Patrick Chinamasa signed two master loan agreements with the China Export and Import Bank and the China Export and Credit Insurance Corporation.

Minister Chinamasa said the signing of the agreements had created avenues to secure funding for viable projects.
“We’ve signed MoUs which provide a securitisation framework under which projects in the infrastructure and productive sectors can be funded,” he said.

“The MoU with the China Exim Bank puts in place a framework under which we can secure funding for projects in the productive and infrastructural sectors on a case by case basis that also puts into place a securitisation framework on the basis of which we can then submit projects for funding. But that funding will only come from China Exim Bank.

“The one with the China Export and Credit Insurance Corporation is also providing a securitisation framework for infrastructure and productive projects that can be funded by both the state and non-state financial institutions.

“It’s opening up other sources of funding. These projects will be anchored on securitisation.”
Minister Chinamasa said only viable projects would attract such funding, adding that the Zimbabwe delegation was not in China to look for budgetary support.

“No country sets aside a lump-sum payment for no specific projects,” he said.
“Projects must demonstrate their ability to pay for themselves.

“You will not come to China to ask for money to invest in a project that won’t pay for itself. It’s different from a grant.”
Chinamasa said he also signed another MoU on economic and technical cooperation on the provision of emergency food donations by the Chinese government to the government of Zimbabwe and a concessionary loan agreement for NetOne Network Expansion Phase Two project.

Foreign Affairs Minister Simbarashe Mumbengegwi signed another MoU on behalf of the Zimbabwean government on mutual exemption of visa requirements for holders of diplomatic and service passports.

He also signed another MoU on the agreed minutes of the Ninth Session of the Joint Commission of Economic, Technical and Trade Cooperation that met from August 21 to 22 in Beijing.

Tourism and Hospitality Industry Minister Walter Mzembi signed an MoU between his ministry and the National Tourism Administration of China on co-operation in the field of tourism.

 

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