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Zimbabwe's Elections 2013 - Index of Articles
plans sovereign wealth fund
October 31, 2013
to craft a law to set up a sovereign wealth fund by next February
but it may not have any money at first as the government desperately
needs to develop the country’s crumbling infrastructure, the
finance minister said.
also said on Wednesday that the government would consider a first
international bond issue to help finance its mining sector.
African country has previously said it wanted to create a sovereign
wealth fund to buy shares in foreign-owned companies, including
mines, under President Robert Mugabe’s controversial black
economic empowerment programme.
to set up the sovereign wealth fund will be ready next year first
quarter, February latest. But we will not operate it due to budget
constraints,” Chinamasa told a forum organised by a local
that we propose to use to set up the fund, we are going to use to
bridge the infrastructure deficit,” he said.
Zimbabwe was desperate to revamp its ageing infrastructure, which
includes electricity-generating plants, roads and water treatment
facilities, which have been neglected for the last 20 years.
Monetary Fund and the World Bank have shunned Zimbabwe over its
non-payment of arrears, while Western donors cite election
fraud and human rights abuses by Mugabe as reasons for withholding
aid. Mugabe denies the charges.
of the country’s budget is consumed by salaries, leaving very
little for infrastructure development.
the world’s second-largest platinum reserves and several mineral
deposits, including gold, diamonds, chrome and coal, but mining
has been starved of investment as foreign investors fret over Mugabe’s
bond to finance mining or any of our critical sectors is something
that we will consider, but we would need to assess how it would
work and if it will not place an additional burden on the (country’s
finances),” Chinamasa said.
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