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Zim-ASSET rolls on

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THERE have been attempts to dismiss Zim-ASSET with some critics even predicting that the economic turn-around blueprint would suffer a stillbirth.
Yet the programme, despite funding challenges, has already kicked off with a number of notable projects already off the ground.
For instance, the process to resuscitate New ZimSteel (formerly Ziscosteel) in Kwekwe has already begun.
Production of steel is considered a key area in Government’s efforts to revive the economy in the Zim-ASSET.
Housing, which falls in the Social Services and Poverty Eradication Cluster, recently received a major boost through the construction of 5 000 housing units and two schools by a Turkish company called Anadola Construction.
In the same vein, two cement factories in Harare and Rushinga are being constructed.
But above all, the promise by the Chinese to fund Zim-ASSET to the tune of US$10 billion dollars presents even more interesting dimensions to the implementation of the programme which is anchored on four strategic clusters, namely Food Security and Nutrition; Social Services and Poverty Eradication; infrastructure and Utilities; and Value Addition and Beneficiation. Last year, ZANU PF distributed agricultural inputs to small-holder farmers under the summer cropping scheme, which benefitted more than 1,7 million households countrywide.
China is also involved in a massive agriculture project in partnership with ZNA outside Chinhoyi and there is anticipation of a bumper maize harvest.
For the Chinese this is more than just about friendship, it is about their realisation of Zimbabwe’s potential as an economic giant.
And it was no coincidence that the announcement by China came a day after European Union (EU) nations had spewed their usual anti-Harare diatribes during a seminar last week.
The two-day re-engagement seminar which was hosted by the Southern African Political Economic Series (SAPES Trust), had become somewhat a ‘cold’ duel between the EU and BRICS nations, but the latter emerged victorious through the statement of intent made by China.
The BRICS grouping comprises Brazil, Russia, India, China and South Africa.
These nations are projected to overtake many Western nations in the next coming few years.
The West has adopted a combative stance on Zimbabwe through their imposition of illegal economic sanctions while on the other hand, BRICS has an open door policy.
The two SAPES Trust seminars were a tale of two opposing schools of thought in the global economy especially in the context of Zimbabwe as a key player in the game.
True to form, Western nations attending the seminar exhibited their usual bully tactics but China’s statement was a sobering reality check for them.
In the weeks preceding the seminar, there had been a flimsy attempt particularly by our noisy neighbours in the so-called ‘independent’ media, working with Western nations to portray Zimbabwe as a nation in crisis, a country led by ‘clueless’ men and women.
But the announcement by Ambassador Lin Lin that China was ready to release a loan package to Zimbabwe not only quelled the misplaced aspersions on the country’s alleged failure to attract investment, but was a clear statement to the EU given the overwhelming attendance by BRICS nations.
To compound Ambassador Lin’s announcement, it emerged this week that negotiations for the loan package are at an advanced stage.
The Chinese’s commitment to the deal, sources who spoke to The Patriot this week said, is seen through the invitation sent to President Robert Mugabe for a state visit to the Asian economic powerhouse during the second half of the year.
To cap a resoundingly successful week for Zimbabwe’s future prospects, Zim-Trade, the country’s trade promotion body, announced that a business delegation from India would this month visit the country to explore business opportunities.
Finance Minister Patrick Chinamasa said in February he expected Zimbabwe to conclude negotiations for comprehensive financial aid with China in three months.
On its part, Zimbabwe has offered to securitise the loan using its vast mineral resources.
The country has already set the ball rolling following last week’s unveiling of a mining exploration company, the Mining Promotion Corporation by Mines and Mining Development Minister Walter Chidhakwa.
Speaking to the media soon after unveiling the company, Minister Chidhakwa said it would be key in identifying mineral deposits which will be used for securitisation of loans and in negotiating joint ventures between government, local and foreign investors.
China has never hidden its admiration for Zimbabwean mineral resources.
Zimbabwe has the world’s second-largest reserves of platinum along with huge deposits of gold, alluvial diamonds, coal and chrome.
“My Government is committed to give our support to Zimbabwe’s economic recovery,” said Ambassador Lin.
“What I can say now is that the two sides are carrying out discussions on lines of credit provided by Chinese financial institutions as proposed by the Zimbabwean side using your minerals as kind of security.
“We are looking forward to reaching a kind of an agreement on that issue and I hope sometime this year.”
Han Bing, Economic and Commercial Counsellor at the Chinese embassy in Harare told online news agency The Source in an earlier interview that the Export and Import (Exim) Bank of China and officials from Zimbabwe’s Ministry of Finance were working on a possible financial deal.
“We are discussing whether we can take proceeds of sales for some minerals as collateral for the loans,” said Han.
“The (Exim) Bank and the team from the Ministry of Finance are now working at a technical level on how they can set up such a mechanism, how much the collateral would be and how much loans they (Zimbabwe government) can get.”
Han said the issue of collateral was a norm when granting a loan.
“We are asking for collateral because it’s in accordance with rules and regulations when granting any loan. This is the concept that we are now discussing with the government,” he told The Source.
The Indian delegation to Zimbabwe will represent 10 companies from the Asian country.
In a statement Zim-Trade said the objective of the visit was to enhance economic linkages between Zimbabwe and India.
“Zim-Trade is urging all stakeholders and other entrepreneurs to utilise this opportunity to boost trade and investment relations,” reads part of the statement.
The delegation comprises representatives of companies with interest in infrastructure, mining, energy and power generation, pharmaceuticals, agro-food processing, transport and road, rail development and education.
Zimbabwe is no doubt on the path to recovery.

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