Zimbabwe economy: Loan approval, Pik N Pay
Zimbabwe gets African Development Bank backing
The African Development Bank has approved 2 local projects that require $58 mln to be funded under the Zimfund next year.
AfDB representative Damoni Kitabire told a budget consultative meeting in the capital yesterday that $28 mln would be allocated towards water and sanitation with the remainder going towards power and environmental projects.
“The team preparing the water project is currently in the country working on the details of the project while the team on the power project is expected in the country next week,” said Kitabire. The water projects are expected to augment ongoing rehabilitation projects in Harare, Mutare, Masvingo, Kwekwe and Chegutu.
The proposed power project is aimed at rehabilitating portions of power supply network and improve environmental and safety management at Hwange Thermal Power Plant and power transmission and distribution.
The AfDB manages the Zimfund with contributions from various bilateral donors.
Zimfund is currently capitalised to the tune of $42 mln of which, $9 mln came from Australia, Denmark $5.1 mln, Sweden $5.3 mln and the United Kingdom $15.5 mln.
Pick n Pay brand to enter Zimbabwe
South African retailer Pick n Pay Stores Ltd said Tuesday it has almost doubled its stake in Zimbabwe's TM Supermarkets in a $13 million deal that brings its holding to 49%.
The acquisition of a further 24% stake in the retailer is another vote of confidence in the troubled country after beer giant SABMiller PLC (SAB.JO) in October resumed reporting the results of its Zimbabwean unit.
It also comes at a time when the potential of sub-Saharan Africa's retail industry is in the spotlight as Wal-Mart Stores Inc. (WMT) considers a takeover of South Africa's Massmart Holdings Ltd. (MSM.JO).
Pick n Pay said its investment will inject fresh capital into TM Supermarkets, which will allow for much-needed refurbishment. Some of the company's 51 outlets in Zimbabwe will be rebranded Pick n Pay stores, it said.