By Bright Madera

The Government and the private sector still stand a chance to benefit from the US$1,2 billion African Import and Export Bank balance sheet that is earmarked for infrastructure development in Africa.

Speaking during the Ai Pan African Investment Summit in the capital on Tuesday, Afrexim Bank regional manager Mr Gift Simwaka said it is the mandate of the bank to finance trade investment and potential projects across Africa.

"The US$1,2 billion is not enough to facilitate infrastructure development and we are working with other international financiers to fund such projects.

"We should be financing deals not too long from now to get the infrastructure to where it was before," added Mr Simwaka.

In relation to the Zimbabwean situation, Mr Simwaka said: "We are working tirelessly to improve the credit worthiness of Government."

However, the country’s external debt currently stands at US$5,7 billion of which US$3,2 billion is owed to the donor community and US$1,3 billion to the International Monetary Fund, World Bank and the African Development Bank.

Zimbabwe is currently working on a comprehensive external debt and arrears clearance strategy aimed at unlocking meaningful external financial support by engaging co-operating partners, mainly the IMF, World Bank and AfDB.

Government’s commitment to clear the debt could see the country receiving funding for short-term investments such as the World Cup 2010, where a few hotels need to embark on a refurbishment exercise.

Mr Simwaka was speaking on the need for funding for short-term investment opportunities for Zimbabwe and Africa ahead of the Fifa World Cup to be hosted by neighbouring South Africa.

Zimbabwe requires funding from regional and international institutions to finance its budget for the World Cup, as it engages the world in the rebranding the country.

The country needs to finance an anticipated budget deficit of about US$800 million. A number of external financiers have generally been non-committal.

Zimbabwe has over the past six years benefited from Afrexim Bank funding that was extended to the country’s financial sector.

African countries have also suffered from the effects of the global financial crisis that has seen a slow take-up of projects due to serious lack of funding.

Meanwhile, speaking at the same summit, Actis acting director Mr Kevin Teeroovengadum said his company is sitting on over US$5 billion and they are looking for investment opportunities south of the Sahara mainly in Zimbabwe, South Africa and Botswana.

Actis, an emerging markets private equity specialist, is looking at potential projects in the hospitality sector.

"We have projects across the world and we want to move into Southern Africa for acquisitions, buying existing businesses, mergers or providing capital for expansion," said Mr Teeroovengadum.

Actis normally looks at deals with an average value of between US$40 million and US$50 million.

Mr Mbuyazve Magagula from Industrial Development Corporation South Africa’s Tourism Business Unit said 30 percent of IDC investments are outside SA thus there are opportunities to invest in Zimbabwe.

IDC has over the years supported businesses in Zimbabwe and investment into the country is expected to increase following the signing of a bilateral trade agreement between the two countries late last year.

Mr Magagula said IDC is talking to a Zimbabwean hotel group to refurbish its hotels.

"When it comes to investing outside, concerned countries are supposed to clear risk issues with the Export Credit Insurance of South Africa," said Mr Magagula.

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