Zimbabwe has signed its first major international loan agreement with China since its change of guard last month.
Speaking to media ahead of his budget presentation in parliament today (Thursday), Zimbabwe’s finance minister, Patrick Chinamasa, announced that government had signed three new development deals, including a loan agreement to the tune of US$153 million for the revamp of the Robert Gabriel Mugabe International Airport in Harare, with Chinese ambassador, Huang Ping, on Wednesday.
Chinamasa said the revamp was needed to attract investors and tourists. “This (airport) project and the budget we are presenting today will show we are serious about reshaping our economy,” he said.
The minister conceded that the country had failed to repay China for previous loans but added that it was still willing to deal with Zimbabwe. “The Chinese government understands the economic situation we are going through. This is why we call them ‘all-weather friends’,” Chinamasa commented.
Reuters news agency reported yesterday that the loan for refurbishing the airport was payable in 20 years with interest rates of 2% per year and a seven-year grace period while the country rebuilt its economy.
The Reserve Bank of Zimbabwe (RBZ) is also confident of a quick economic revival next year – despite the general upheaval of an election process in the country – with its deputy director, Sam Tarinda, projecting 4% growth on the back of what he termed “positive sentiment over the new dispensation” as well as anticipated growth from the agricultural sector.
