Zimbabwe: AfDB Signs Agreements with Zimbabwe Companies

The African Development Bank (AfDB) has signed two non-disclosure agreements with Zimbabwean companies, which paves the way for information-sharing, optimistic about the lack of disclosure. providing funds to the private sector. [19659003AccordingtoadelegationfromtheADBinthelastmonthandorganizingatradeunionmeetingwithprivatesectoractors

Abdu Mukhtar, Director of AfDB Industrial and Commercial Development, told Standard Business in Abuja signing the agreements was a key step toward private sector investment in the bank .

"We have had bilateral meetings with these companies.I have signed two confidentiality agreements (NDA).

" The NDA is the first step in sharing information with a prospective master. book to finance the project as and when. I personally signed two in three days, "he said.

NDAs expose confidential documents, knowledge or information that the parties wish to share among themselves for certain purposes, but wish to restrict the 39. Access to Third Parties.] "What this means is that we are actively watching these projects. We have already shared information and received information of these types, we will evaluate these companies, projects and come back with a proposal on how we can invest in these companies, "said Mukhtar.

Development Roundtable private sector in a climate of optimism, the bank based in Abidjan would finance the private sector, which is essential for the growth of the economy

Zimbabwe can not access the financing of the ADB, which He owes $ 601 million in negotiations with the bank and other creditors such as the World Bank and the Paris Club to extinguish the debt and release new lines of capital needed to restart the economy. 19659009] Analysts say Zimbabwe needs long-term finance to repair the economy, beaten by years of financial indiscipline and populism

Banks No They may not offer long-term loans because of the short-term nature of deposits, which means that they have to seek funds overseas.

The fact that Zimbabwe owes everyone to the north, west, east and south means that secured lines of credit have a high cost, which increases the cost of production and makes local products uncompetitive on the international market. President of the Zimbabwe Confederation of Industries Sifelani Jabangwe told the ADB team that the manufacturing sector needed $ 2 billion to launch all sub-sectors.

The situation is unsustainable with the chairman of the Zimbabwe Bankers Association, Webster Rusere, who last month told the ADB team that he needed letters of credit written by the bank.

The private sector needs $ 11 billion for new and brownfield projects.

According to the Chamber of Mines, at least $ 900 million is needed The ADB warmed up in Zimbabwe and granted $ 25 million to CABS in March for on-lending to the productive sector, the second time the bank has advanced money. Mukhtar said his team was satisfied with the visit to Zimbabwe and reported his findings to the bank's senior management.

"Everyone is happy with the visit to Zimbabwe. happy. This will reinforce what we have said that the African Development Bank is ready to resume contact with Zimbabwe, "he said.