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Zimbabwe gov pursuing bond to finance mining

The Zimbabwe government is mulling options for an international bond that will be used to raise money for development of the country’s mining sector, according to Mines Minister Walter Chidakwa.

Chidakwa plans to meet with Zimbabwe’s Finance Minister Patrick Chinamasa to devise a plan for the bonds within the next 30 days.

“We haven’t worked out how much we are going to raise and who is actually going to work in putting together the bond,” said Chidakwa.

The bond will be seen as a test of investor willingness to participate in Zimbabwe’s economy, one which currently asks mining companies to “sell or cede 51% of their local assets to black citizens of the country, or to the state.”

“A government bond to raise funds for mining still has to be backed by friendly investor policies that promote growth to attract investments, said a mining expert who was unwilling to be named.

“As long as we still have prohibitive policies, then the prospects of the bond will not be so good.”