Zimbabwe and Botswana have concluded a 500 million Pula line of credit deal which is expected to assist local industry in reviving production and exports.
A report of the deal in possession of ZBC News shows that a delegation led by the Minister of Finance Mr. Tendai Biti, government officials and members of the business community on Friday last week met withÂ officials from Botswana in Gaborone.
ItÂ was agreed at the meeting that 500 million Pula or US$70 million should be released to Zimbabwe in the form of a credit line revolving facility.
In terms of the deal, the two countries agreed that the facility will cover the export of goods and services from Botswana to Zimbabwe and joint venture deals.
Furthermore, it was resolved that 70% of the funds will be allocated to the manufacturing sector, while the remaining 30% will go towards other sectors of the economy, a move that was cited by the Confederation of Zimbabwe Industries ( CZI) President, Mr. Joseph Kanyekanye who also attended the signing ceremony as important in facilitating macro- economic growth.Â
â€œIndeed, the deal is now a reality and we are expecting the facility to be readily available by end of this month after governments for the two nations agreed in principle on all the aspects,â€ said Mr Kanyekanye.
It is being anticipated that the credit line facility will also consolidate economic gains achieved since January in the form of price stability, improved industrial productivity as well as the restoration of business confidence.
Government is mobilising funds to restore industrial production through negotiations with regional and international financiers such as the Development Bank of Southern Africa, PTA Bank, Afreximbank and the African Development Bank.