Wednesday, May 27, 2009

Good news! South Africa to give Zimbabwe $100 million

Recession? Bah. Throw another $100 mil on the barbie.


South Africa: Residential Property's Slide Continues

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(Bloomberg) --
The Development Bank of Southern Africa Ltd., a state-owned lender, may provide a $100 million short-term loan to Zimbabwe to help upgrade infrastructure in the country.

“We are holding due diligence negotiations with the Zimbabweans on two different packages, one a short-term loan of $100 million,” Sam Muradzikwa, the lender’s chief economist, said in a phone interview today from Johannesburg. “Their long- term needs are still being assessed.”

Zimbabwe, ruled by President Robert Mugabe since 1980, has been in recession for the past decade. The southern African nation is seeking loans from foreign creditors to help rebuild decaying infrastructure including water-supply facilities and power plants.

Talks with the Development Bank have focused on improving Zimbabwe’s erratic electricity supply, introducing a third- generation telephone service and rebuilding and widening the country’s main highway to neighbouring South Africa, Muradzikwa said.

1 Opinion(s):

Anonymous said...

SA's R300m aid gift to Zim a 'waste of money'

South African taxpayers' gift of R300-million to Zimbabwe was a waste of money and some of it is being misused for the benefit of President Robert Mugabe's cronies in Zanu-PF.

The donation - or aid - was announced late last year by Finance Minister Trevor Manuel, who pledged the gift would only be handed over after an internationally-recognised government of national unity was formed.

President Kgalema Motlanthe repeated this assurance.

An instant SADC foundation, the Zimbabwe Development Assistance Framework, was formed to channel agricultural inputs to Zimbabwean farmers.

This framework is still not yet fully operational and its impartiality has been questioned.
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The aid began moving into the country before Christmas.

It is mostly seed, fertiliser and fuel from South African companies and was sent despite warnings from Zimbabwean agriculturalists that most of it was too late for this summer season, and unless distributed carefully would be abused.

Most of the seed arrived months too late to plant and is being eaten, and the wrong fertiliser was ordered for this time of year in the maturation cycle of annual crops like maize.

Before Christmas, 60 000 litres of diesel was also sent into Zimbabwe for distribution.

A senior civil servant, working in the depleted technical support network for farmers, Agritex, in the fertile Mashonaland West province, confirmed that South African aid was often only available to Zanu-PF supporters in parts of the country, particularly Mashonaland West, Mugabe's home province, and Mashonaland Central where Zanu-PF is also in control.