Zimbabwe eyes local funding for projects

By Stanley James

Zimbabwe is stepping up efforts to mobilise funding for local projects, with more than 1,5 billion Zimbabwe dollars expected to be raised from local institutions in the next few weeks.

The Reserve Bank of Zimbabwe has announced it is now in the market to raise the funds by floating a two year treasury bond to local institutions.

According to monetary authorities, the purpose of the loan is to raise funding for government projects.

Economist Dr Zack Murerwa speaks on the capital raising plan.

“It is showing that commitment by the government to raise funding from the local resources without resorting to external systems, so, let’s wait and see the outcomes,” he said. 

Zimbabwe Builders and Contractors Association vice president Petros Kagwere highlights the importance of the proposed bond.

He said: “We as the key enablers of the system will be grateful if the exercise will be a success so that we are in a position to get more funding for the projects.”  

Zimbabwe is forging ahead prioritising allocation of resources to local projects, with the biggest beneficiaries being local companies.