Zimbabwe needs $14bn to revive economy

2012-03-22 09:05

Harare - Zimbabwe needs at least $14bn to revive its economy following a decade-long downturn, Finance Minister Tendai Biti said on Wednesday.

"We require $14bn to get our economy back to 1990 levels," Biti told a seminar organised by the government and Euromoney conferences to try to lure foreign investment to the country.

"We have a foreign debt of $9.1bn. We have defaulted as far back as 1999."

Zimbabwe's economy is showing signs of recovery since the formation of a power-sharing government three years ago by long-time political rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai.

Tsvangirai has attacked the government's implementation of the controversial indigenisation policy, forcing foreign firms to surrender 51% of their shares to local people, saying it would discourage investors.

Platinum miner Zimplats, a Zimbabwe division of Impala Paltinum, the world's second-biggest platinum producer submitted its compliance plan last week.

Biti said he was angered by the manner in which authorities were implementing the law.

"The challenge is the way we are doing it and it makes me very angry," Biti said adding that "a law must be consistent and non arbitrary".

The government has vowed to nationalise companies which fail to comply with the equity law and which Mugabe said was meant to benefit blacks disadvantaged by colonial laws.

Biti warned last week that a short fall on new diamond sales from the controversial Marange fields, the country's major source of revenue could force the government to shut down.

Zimbabwe anticipated $77.5m from diamond sales during the first two months of the year, but received only $19.5m, Biti said, attributing the shortfall to the fact that there had not been any diamond auction since the beginning of the year.

  • E=MC2 - 2012-03-22 09:24

    well im sure Bob has WAY more than that stashed away in off-shore accounts... Zim is just a cash cow that he's milking dry... he should be given the electric chair for crimes against humanity!

  • TacoDan - 2012-03-22 09:25

    In the event that anybody is willing to help Zim, how much of the 19bn dollars will reach the economy and how much will reach Bobs account?

      Stephen - 2012-03-22 09:31

      That's right, you can't help that country.

      alan.carstens - 2012-03-22 11:05

      @Stephen - You are a chop.

      Stephen - 2012-03-22 14:40

      @Alan, I got this memory, of the "live aid", concerts, in the UK and USA, trying to raise money to feed that little kid with the empty bowl, starving to death, there's a book out now called, "dead aid", it’s about just what a waste of time the whole thing was, all that money did was go into the pockets of the greedy governments, to put 1 grain of rice in that kids bowl, you'd have to invade the place. handouts dont help. Actually the country'e that got the aid, are even worse off than they were.

      Arthur A Lilford - 2015-07-12 10:13

      Well cheaper than Greece - but Greece is at lease honest

  • Louis - 2012-03-22 09:53

    I suggest you ask your president, the honorable genius Robert Mugabe for the money. If he sells only half his luxuries you should easily make up the $14Bn.

      grantdutoit - 2012-03-22 10:22


  • Open mind - 2012-03-22 10:12

    WE want, please give, please help... a decade long decline... Wake-up smell the Roses stop your racist policies and build a better Africa for all, accept help from the west on their terms, if you can't accept their terms then don't ask... it's their money... If Africa implements the things that worked in the West we can be one of the greatest regions in the world...

  • sbriedenhann - 2012-03-22 10:31

    Get Mugabe to pay it. After all, I am pretty sure he's good for the money considering he pilfered all of it. And I don't think it will be long and we will see a headline that reads "SA needs $14bn to revive economy" the way this government is running things.

  • ludlowdj - 2012-03-22 10:33

    Zimbabwe has made its own bed by continuing to allow a vote of failure for the ruling ZANU PF party, and must now sink or swim on its own merits, although I'm sure the ANC will jump at the opportunity to help its dictatorial allies, in the hopes that it will drum up enough support for its own plans of dictatorship. South Africa under the ANC is and has been following the exact same process that Mugabe followed to declare his own dictatorship.

  • Stephen - 2012-03-22 10:34

    What it needs is a non-thug government.

  • lmapheto - 2012-03-22 10:36

    You killed the Agricultural sector in your country by chasing away Farmers and you labelled them WHITE FARMERS what difference does it make? Give back the farms to the rightful owners and you get 14b in a semester...

  • frans.grobler3 - 2012-03-22 11:42

    Hey Bob! Money is a colonial thing - you don,t need it... not so. You can't even fly anymore whats next DF.

  • Africa21stcentury - 2012-03-22 13:01

    As soon as this Mugabe thug is gone, the money will be pouring into Zimbabwe !!!!!!!

  • Andre - 2012-03-22 13:19

    i hope the world sees these comments and agree not to give ANY aid to Zimbabwe until Mugabe and his party is OUT of power.If anybody gives them money,they will swindle it.

  • Lesvokli - 2012-03-22 13:25

    I hope you can sleep at night Mbeki!

  • Nuro - 2012-03-22 13:36

    The year is 2023....SA needs 50Billion AMERICAN dollars to reactivate it's economy after years of corruption and bad administration from the previous ANC government. This according to the new government headed by the thinks.

  • Geoff Dellow - 2015-07-12 09:54

    Get rid of Bob and economy will recover. I'm surprised he hasn't been assassinated yet!

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