South African Bank Gives Zimbabwe Tobacco Loan

Source from:  Harare, Zimbabwe, 04/18/2005

Zimbabwe has secured a $25 million loan from South Africa`s biggest bank, ABSA, to finance production of its main tobacco export, banking officials confirmed here Friday. Production of the crop has plummeted from a peak of over 200 kilogrammes five years ago to 64 million kilogrammes last year due to instability in the farming sector and drought. ABSA advanced the loan through the Zimbabwe Allied Banking Group, and it would be used specifically to finance tobacco production in the coming farming season. Government officials said the loan, one of a few the country has attracted in the face of Western sanctions, was an indication Zimbabwe was breaking out of isolation and re-establishing international investor confidence. "To us, the deal is a sign of investor confidence in the potential capability of the re-organised farming sector in the country," said Agriculture minister Joseph Made. He said the loan would mainly be used to procure inputs for farmers to boast production to peak levels. Endtiem