Monday, November 18, 2013
Zimbabwe is seeking $10 billion bailout from China to kick start the economy
ZIMBABWE is seeking $10 billion bailout from China to kick start the economy which is comatose following the re-election of President Robert Mugabe in July 31.
The country, whose economy is stagnant, desperately needs white knights to rescue the economy which is in a tail spin.
Finance minister Patrick Chinamasa was scheduled to visit China month end to seal a $10bn financial rescue package for Zimbabwe that Zanu PF believes will kick start the economy.
Although Chinamasa was not immediately available for comment yesterday, sources said the China $10bn rescue package was a done deal.
Zimbabwe has mortgaged its mineral resources particularly Chiadzwa Diamond fields as part of the deal to secure $10bn deal from China.
On Friday Chinamasa, Foreign Affairs minister Simbarashe Mbengegwi and Media, Information and Broadcasting Services minister Jonathan Moyo met regional and international diplomats as part of efforts to re-engage the international community to rescue the country. But sources said the China sojourn was deemed the panacea to the country's economic quagmire.
China, the country's all-weather friend, has become one of the country's biggest trading partners after the government adopted the Look East policy.
Zimbabwe and the China Export and Import Bank last week signed a $319 million loan agreement for the expansion of Kariba South hydro-power project expected to go a long way in addressing the plethora of economic challenges besetting the country.
Under this arrangement, the bank will provide funding amounting to $319,5m - representing 90% of the total project cost, while the government, through the Zimbabwe Power Company will finance the 10% balance amounting to $35,4 million.
The project is expected to add 300 megawatts (MW) to the national grid, a development set to ease power outages which have largely been blamed for industry's poor performance evidenced by closure of an estimated 711 companies nationwide this year.
Zimbabwe's electricity generation capacity is estimated at 1 200MW against a peak demand of over 2 200MW and the country has been battling to attract foreign funding into the energy sector for long.
This has largely been due to ballooning external debt estimated at $11 billion, policy misalignments - chiefly the indigenisation law which calls for foreign companies to cede 51% of their shareholding to locals.
However, the government has of late been relaxing the implementation of the policy as the pressure to attract investment and salvage the ailing economy continues to mount.
Remember to Click the Share Button below and Share the Video with your Facebook Friends !!!!
Midlands State University students are involved in Prostitution & some living as husband and wife with their boyfriends due to accommodation problemsMSU Student in Senga GWERU - Students at the Midlands State University (MSU) continue to face accommodation problems, as the institution...
Senga Secondary School science teacher beats student and she started crying & he lifted her skirt exposing her legs to the whole classGWERU — A Senga Secondary School science teacher, who allegedly abused five girls, last Friday appeared for trial. State witnesses, led b...
Tsvangirai's wife love affair with ex-boyfriend deepens, she rushed to South Africa while Tsvangirai went to Buhera to consult village elders on how to handle this embarrassing matterElizabeth Macheka Crying Outgoing PM Tsvangirai’s wife Elizabeth Macheka is wreaking havoc in her boyfriend Mr Kennedy Ngirazi’s marria...
A 25-year-old Seke man who seriously assaulted his mother’s 48-year-old boyfriend after seeing him taking a nap in her bedroom will compl...
Breaking News :Harare woman sets husband on fire and kills self thinking that her husband was dead (Pictures)The daughter (in brown jacket) only identified as Victoria trying to have a look at the body with a relative A woman doused her husband...
At least 41 people were killed Thursday in a bus crash west of the Kenyan capital Nairobi, the Kenyan Red Cross said. "It is a hor...
Exiled Telecel boss James Makamba has for the first time spoken about the widespread rumors of an affair with the First Lady, Grace MugabeExiled businessman, James Makamba has for the first time spoken out about the widespread rumours of an affair with the First Lady, Grace Mu...
A study into marital infidelity has found that longer penises are linked to wives cheating on their spouses. The study, published in th...
RECENT POSTS NEW
Powered By Blogger Widgets