Central African Building Society (CABS) has today signed a US$25 million deal with the African Development Bank group expected to help enhance the country’s industrialization programme and drive economic development in line with the agenda of the new political dispensation.
Speaking at the signing ceremony of the deal, Reserve Bank of Zimbabwe governor, Dr John Mangudya hailed the facility which he said is coming at a time when it is needed to revamp the country’s economy.
“The facility came at a very and most needed time, where the country is open for business in a bid to change the economy,” said Mangudya.
Mangudya added, “Zimbabwe has been struggling for a foreign currency and this economy requires 3 to 400 million dollars, therefore, $25 million is a huge amount and contribution which we believe it will help in our agenda of rebuilding the country again.”
Ministry of Finance’s Accounting General, Daniel Muchemwa who spoke on behalf of Permanent Secretary, Willard Manungo said the funding will enhance industrialization while pushing the government on creating an enabling business environment in the country.
“This facility received by the country today is valuable and it will enhance industrialization as well as pushing the government’s agenda of enabling a business environment.
CABS Managing Director, Simon Hammond said the African Development Bank facility will help a lot in developing the country’s industrialization.
Meanwhile, head of the Trade Finance Program within the Financial Institutions Division of the African Development Bank, Yaw Adu Kuffor said that AFDB wants to address Zimbabwe’s challenge of foreign currency through rebuild the industrialization sector.
“We want to address Zimbabwe’s challenge especially in the private sector and funding is the beginning because we all know that lack of finance is a risk to a country’s economy,” said Adu Kuffor.
According to AfDB, this facility contributes to scaling up of AfDB’s interventions in supporting the economic turnaround necessary to reposition Zimbabwe as a major productive centre in the Southern African region.
The Bank Group is currently engaged in a number of initiatives in Zimbabwe including supporting the external debt and arrears clearance process, in addition to infrastructure rehabilitation in the Energy and Water and Sanitation sectors through the ZimFund.