The facility was launched by the government in collaboration with the Africa Export and Import Bank (Afrexim Bank) on July 14.
“The facility, which is funded by the Government of Zimbabwe and the Africa Export and Import Bank, is available to Zimbabwean registered companies including Small and Medium Scale Enterprises. US $45 million of the facility is earmarked for the acquisition of equipment and capital goods whilst US$25 million will be for working capital,” a statement issued by the Finance Ministry noted.
Companies will be charged interest using the London Inter-Bank Offer Rate (LIBOR) plus a margin of five percent per annum while the loan disbursements will be done according to the country’s regions and to productive sectors, it was announced.
“This loan facility will be accessed in a manner that will ensure proportional and equitable distribution in relation to the country’s regions and productive sectors.”
Zimbabwe industry has been facing financial problems due to the economic troubles that were affecting the country before the formation of the unity government of once rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai.
The unity government has failed to convince investors to pour funds into the economy as disagreements have led to slow implementation of the outstanding issues affecting the unity government.
The government at its inception said it required more than US$ 10 billion dollars to resuscitate industry.