Government to provide security on loans secured by Sable Chemicals and Silo Foods

Online Desk |  11 months ago | local

Government has agreed to provide security on two major loans secured by Sable Chemicals and Silo Foods, which are set to stimulate activity in the productive sector and reduce Zimbabwe’s import bill.

According to a government gazette published yesterday, the State partially agreed to guarantee Sable Chemicals on a 650 million dollar loan from ZB Bank to procure Ammonia gas from South Africa for fertilizer manufacturing.

Finance and Economic Development Minister Professor Mthuli Ncube said government will repay ZB Bank 60 percent of the loan or 390 million in addition to interest in the event Sable Chemicals fails to repay the debt. 

The minister also stated that government will provide security for a 550 million dollar loan secured by Silo Foods from FBC bank. 

The loan facilities will boost Zimbabwe's fertilizer production capacity and push value addition of agro foods.