UPDATE 3-African states give Zimbabwe $400mln credit-report

Wed Apr 29, 2009 10:10am EDT
 
[-] Text [+]

* Zimbabwe wins $400 million in credit lines - state media

* Credit to be available to companies in coming weeks

* Rights group urges end to abuses before aid resumes

* Tsvangirai says rule of law key to business recovery

(Adds Tsvangirai comments)

By Nelson Banya

HARARE, April 29 (Reuters) - Zimbabwe has secured $400 million in credit lines from African states to revive its ailing industries, state media reported on Wednesday, in the first major financial package since a unity government was formed.

Industry and Commerce Minister Welshman Ncube was quoted by the Herald newspaper as saying African countries had committed to provide the credit lines to companies in Zimbabwe as it struggles to rebuild its shattered economy.

A unity government formed by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai has appealed for about $8.3 billion to help revive the economy.

"Minister Ncube said Zimbabwe had managed to secure about $200 million from countries in the Southern African Development Community and another $200 million from the Common Market for Eastern and Southern Africa to meet urgent and pressing working capital requirements for local companies," the Herald reported.

Although the funds from African states may help, Zimbabwe is in dire need of aid from Western donors, who have demanded broad economic and political reforms, including ending a new wave of farm invasions targeting the few remaining white farmers.

RESTORING RULE OF LAW

Tsvangirai told an investment conference in Bulawayo, Zimbabwe's second city, that the country could only attract foreign aid and investment if it upheld the rule of law and tackled corruption.

"Restoring the rule of law is both a moral imperative and business necessity. If business is the engine of growth, then the rule of law is the fuel that drives the engine," he said.  Continued...