Published: 06 March 2014

Zimbabwe needs about $18 billion to modernise its infrastructure and recapitalise, a top government official has said.

Stanislaus Mangoma, director of Enterprise Development in the ministry of Industry and Commerce, told delegates during a World Bank seminar on trade and competitiveness held at a local hotel in Harare yesterday, that the hyper inflation era curtailed the infrastructure modernisation drive.

He said: "Regarding recapitalisation and modernisation, it is well-known that capital equipment in Zimbabwe is on average 30-years-old and over.

During the decade of hyper inflation, no recapitalisation and modernisation, let alone funding for research and development ever took place.

"In addition, given that the cost of money in Zimbabwe is prohibitive, the lack of development was further exacerbated by the cost of money with its attendant short-term nature.

"Initial estimates post adoption of multi-currency era under the government of national unity put industry requirements at approximately $2 billion.

"If you add the level of funding required for the revitalisation of dilapidated infrastructure which include rail, road, air, water and telecommunications, the resource envelope would balloon to over $18 billion."

Mangoma said government will set up Special Economic Zones this year.
- dailynews

You might also want to read this

• Air Zimbabwe resumes S.Africa flight after settling debt
• Zimbabwe still to get Embraer operating manual
• Air Zimbabwe using antiquated software
• Credibility of Zimbabwe-led poll observer mission queried
• Air Zimbabwe failing to attract an investor
• Air Zimbabwe acquires new Boeing 777 planes
• New regulations for Zimbabwean Presidential aspirants
• Zimbabwe now a truly cashless society
• Zimbabwe earns US$5bn through exports
• West tightens screws on Zimbabwe