The African Export Import Bank (Afreximbank) has availed US$1,5 billion to support the revitalisation and stabilisation of the country’s economy, in a latest show of confidence by the regional financier.
The package was announced by Afreximbank President and Chairman, Dr Okey Oramah when he paid a courtesy call on President Emmerson Mnangagwa at his Munhumutapa offices in Harare this Tuesday afternoon.
Dr Oramah was accompanied by the bank’s Executive Vice President, Mr Denys Denya and the Regional Chief Operating Officer for Southern Africa, Mr Gift Simwaka when he met Cde Mnangagwa.
The Minister of Finance and Economic Development, Cde Patrick Chinamasa and the Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya were also in attendance.
Speaking to journalists after the meeting, Dr Oramah said they found it prudent to come and congratulate President Mnangangwa and to convey the stabilisation package.
The support by the Afreximbank comes on the back of positive signals by the International Monetary Fund (IMF), which has officially confirmed its willingness to partner with the new government.
The government of China last week signed a US$220 million package for strategic sectors of the Zimbabwean economy.
The latest show of confidence by Afreximbank and other financiers has injected renewed optimism for a quick rebound of the economy with Minister Chinamasa projecting a growth rate of 4.5 percent.
Afreximbank has played a critical role as a lead arranger to secure funding for Zimbabwe to settle some of its arrears to the Africa Development Bank (ADB) and the World Bank with its recent efforts to stabilise the country’s economy being the provision of the US$600 million nostro-stabilisation facility which will run until early next year.
The latest show of confidence by Africa’s trade finance bank through granting a US$1.5 billion is sure to excite the performance of the economy with the government already warming up for a more robust economic performance next year.
“The facility will be channeled to key sectors of the economy,” clarified Minister Chinamasa.
Just a few days after the presentation of the 2018 national budget, which the industry concurs assumed a more positive outlook compared to previous budgets, the positive sentiment by Afreximbank provides the perfect conduit for other investors to partner with the government and reposition the country to a more rapid recovery trajectory.
The major objective is that this facility will help stabilise imports, sustain the recovery of the country as well as enhance the stabilisation of foreign exchange markets.
The package is also expected to ease cash shortages in the economy.