The Sunday News
Roberta Katunga Senior Business Reporter
THE African Development Bank (AfDB) will extend $120 million in the form of a grant to Zimbabwe as part of the financial institution’s continued support to infrastructure development in the country. In an interview, an official with AfDB Mr Mateus Magala said the grant was aimed at infrastructure rehabilitation in the water and energy sectors.
“For the period 2015-16, focus will be strengthened through emphasis on gender, climate resilience as well as green growth and on the provision of knowledge solutions and advisory services to hasten the recovery process. A grant of about $120 million will be extended to the country,” said Mr Magala.
Speaking on Zimbabwe’s investment environment, Mr Magala said the country was a worthy destination as despite certain challenges, Government was aware of these constraints and working towards addressing them to improve the business climate.
“The country has among other things an adequately educated workforce, low levels of crime and theft as well as good work ethics in the national labour force and minimal tax regulations.
Of course there are challenges such as access to finance, inadequate supply of infrastructure and issues to do with labour regulations, among others. Government is aware of some of the constraints and we believe it is working towards addressing these to improve the business climate,” Mr Magala said.
Last year the bank invested about $68 million in various projects in the country as well as $75 million for the multinational Kariba Dam rehabilitation project for both Zimbabwe and Zambia.
In a separate interview, economist Mr Bongani Ngwenya, said such investments of a developmental nature were in line with the Zim-Asset policy where Government seeks to solicit for investment to resuscitate power and water projects in a bid to improve the economy.
He said these were the kind of positive economic developments the country needed especially on infrastructure as it was generally dilapidated.
“As a country we need such positive developments and it is our hope that the grant when it comes is channelled to intended purpose. If this is something that will materalise, it will go a long way in helping improve the infrastructure in the power and water sectors,” said Mr Ngwenya.
Some of the projects to be funded by the AfDB this year include the Bulawayo water supply and sanitation rehabilitation project, Marondera integrated urban water management project, rehabilitation of Alaska- Karoi electricity transmission line project as well as the energy sector master plan study.
