Govt receives $7,6m from OPEC

Source: Govt receives $7,6m from OPEC | The Herald September 13, 2016

Government has received a $7,6 million loan from the OPEC Fund for International Development (OFID), for on-lending to co-operatives and other income generating projects, Finance Minister Patrick Chinamasa has said.

OFID is an intergovernmental development finance institution established in 1976 by member states of the Organisation of the Petroleum Exporting Countries (OPEC).

Minister Chinamasa said the funds would be utilised in poverty alleviation projects including livestock development, drilling of community boreholes and value addition of local endowments such as fruits and honey.

He said Masvingo, Manicaland and Matabeleland North Provinces would benefit from the funding which will be distributed through the Ministry of Small and Medium Enterprises and Cooperatives Development.

“I am also pleased to announce that on August 17 2016 I signed in Vienna the $7,6 million line of credit from the OPEC Fund for on-lending to cooperatives and other community income generating projects,” he said in his recent mid-term budget.

“On its part, Government will contribute $700 000 as co-financing, bringing total financing of the project to $8,3 million.”

Minister Chinamasa said the funding would also target fish farming, small scale mining, strengthening of entrepreneurial training Institutes and on-lending to Savings and Credit Cooperative Societies (SACCOs).

“The beneficiaries to this facility will be identified rural communities, households, entrepreneurs, training institutions and SACCOs.”

Zimbabwe has over the years benefited from various loans from OFID.

In October last year, OFID extended to Zimbabwe a $20 million loan facility for the construction of schools in the country’s rural areas and the provision of relevant school equipment.

Zimbabwe and OFID’s cooperation began in 1981 and since then, over $74 million in public sector loans and grants have been approved in support of the country’s agriculture, education, energy, health and transport sectors.

OFID works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world.

It does this by providing financing to build essential infrastructure, strengthen social services delivery and promote productivity, competitiveness and trade. — New Ziana.