Harare – The Ministry of Finance And Economic Develop, the Reserve Bank of Zimbabwe (RBZ) and Gemcorp on Tuesday announced that they have signed a $250 million commercial loan facility that will enable the importation of essential and intermediate goods to support the Zimbabwean economy.
In a statement, Minister of Finance and Economic Development, Hon Prof Mthuli Ncube welcomed the development.
“Granting of the facility by Gemcorp is a strong signal by foreign investors of their growing confidence in Zimbabwe. I expect more investors to follow.
In the same statement RBZ Governor Dr John Mangudya said the facility came at the right time to shore up foreign currency liquidity following the end of the tobacco selling season.
“The line of credit is coming up at an appropriate time to shore up foreign currency liquidity after the end of the tobacco selling season.
“This with other facilities that we have secured, should go a long way to meet the import requirements for essential products and services for the national economy.”
Speaking during a ZimTrade-Banks export awareness held in Bulawayo in July, the central bank’s principal analyst for financial markets, Tapiwa Furusa said RBZ managed to secure $1.3 billion offshore loans through the African Export-Import Bank (Afreximbank) and Trafigura to support production and promote exports to support various sectors of the economy.
“During the period November 2017 to May 2018, we have managed to arrange $1,3 billion offshore loans through Afreximbank and Trafigura.
“These have been realised and some of the loans would be used as credit lines to support industry.
“We have got $1.5 billion trading guarantee facility from the Afreximbank which is currently in negotiations. We have also raised $850 million, which is another pipeline offshore finance facility. We have also allocated foreign currency using priority list biased towards productive sectors and essentials.”
Commenting on the investment, founder and CEO of Gemcorp Group, Atanas Bostndjiev said, “With this facility, we are financing and coordinating the delivery of essential goods to support the Zimbabwean economy.
“The trade finance gap in Africa remains significant and is an enduring constraint to economic development,” he said adding that the Gemcorp Group remains focused on working with local partners and borrowers across Africa and the rest of the emerging markets to provide creative markets to provide creative solutions and foster trade and investment in the region.
Founded in 2014, Gemcorp Group has offices in London, Moscow, Geneva, Dubai and throughout Africa.
The Group comprises of a London-based fund manager (Gemcorp Capital LLP) and a physical commodities trader (Gemcorp Commodities Trading).
It focuses on emerging markets with a special interest in the Sub-Saharan Africa, Latin America, and Eastern Europe where the group has established itself as a reliable long-term partner for sovereigns and growth focused private companies.
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