The deputy minister of Finance and Economic Development, Clemence Chiduwa says US$40 billion is needed to fix Zimbabwe’s infrastructure.
Chiduwa made the remarks while addressing journalists in Harare after meeting Africa50 chief operating officer Tshepidi Moremong in Harare.
He said the US$40 billion will maintain and develop new infrastructure, NewsDay reported.
Africa 50 is a Pan African infrastructure Investment platform, which the government engaged to assist with funding the country’s development projects. Chiduwa said:
Our funding requirements for infrastructure covering all the sectors of the economy and all the 14 priority areas is amounting to US$40 billion, but having looked at our financing options and the fiscal space that we have, we are constrained in that area. Having consulted Africa50 and Zimbabwe as one of the shareholders to Africa50, we then discussed innovative financing options and one of them is on asset recycling.
So, Africa50 is here for us to discuss those options. The projects that we are looking at are those that are in the ICT sector; especially the ones on fibre optics and the development of fibre is in line again with the National Development Strategy (NDS 1) where digital economy is a priority area. We are also looking at energy development and also infrastructure development, especially on airports.
On the part of Africa50, we are also looking at them; hand-holding us; especially with regards to the identification of projects and also how best we can identify projects that we think are bankable, viable and low hanging fruits.
Zimbabwe has been struggling to develop its infrastructure, including the expansion of the Robert Mugabe international airport, Mbudzi interchange, and Harare- Beitbridge highway due to its shrinking fiscal space.
Meanwhile, government critics, including the Zimbabwe Coalition on Debt and Development (ZIMCODD), have been sceptical of the government’s borrowing, some of which are not sanctioned by the Parliament.
Some say the government could be borrowing to enrich individuals while others are saying the debts are not sustainable.