Seventh Meeting Cabinet Resolutions

Cabinet met yesterday and the following decisions were passed:

1. Investment Projects Approved for Implementation
The Chief Secretary to the President and Cabinet circulated for the information of Cabinet a list of 11 projects which have been approved by His Excellency the President for immediate implementation after processing by the One-Stop Investment Service Centre.

1) Joint venture partnership between Verify Engineering P/L and Magcor Consortium Group of Companies on coal to fertiliser manufacturing — valued at US$750 million.

2) Joint venture partnership between Verify Engineering P/L and Magcor Consortium Group of Companies on the manufacture of medical and industrial gases — valued at US$5,3 million.

3) The Zimbabwe FINCOMECO on the establishment of a warehouse receipt system and agriculture commodity exchange in Zimbabwe — valued at US$81,365 million.

4) Joint venture partnership between the Cold Storage Commission (CSC) and Boustead Beef (Pvt) Ltd on the livestock joint farming concession — valued at US$130 million.

5) Joint venture partnership between Mindlink Holdings and Government of Zimbabwe on establishment of a bullion bank — valued at US$2 billion.

6) Joint venture partnership between Hondius Capital Management, an asset management firm and the Infrastructure Development Bank of Zimbabwe on infrastructure development through establishing the Zimbabwe Infrastructure, Housing and Development Bank — valued at US$800 million.

7) SUREWIN (Pvt) Ltd, a Chinese company on mining and processing of granite in a special economic zone — valued at US$20 million.

8) Afrochine (Pvt) Ltd, a Chinese company on ferrochrome mining and smelting in a special economic zone — valued at US$200 million.

9) Nkonyeni Agriculture Hub incorporation Bonded Warehouses, Inland Trading Port and Agro-Processing in a special economic zone — valued at US$200 million.

10) Iron and Steel Company for manufacturing iron and steel in a special economic zone — valued at US$1,1 billion.

11) Berhard Development Corporation (Pvt) Ltd on diamond processing, Diamond Training School & Diamond Exchange Trading in a special economic zone — valued at US$53 million.

Total value of the approved projects:
US$5 339 665 000
2. Update on Price Hikes and Availability of Fuel, Basic Commodities and Medicines
Following presentation of an update report on the price situation, availability of fuel, basic commodities and medicines by the Ministers of Industry and Commerce and Health and Child Care, Cabinet noted that overall, the supply of basic commodities continues to stabilise while fuel supply was now largely normal.

However, the prices of basic commodities still remain too high. The limited availability of medicines and the fact that some pharmaceutical outlets continue to demand US dollars for their products is a major cause of concern to Government.

Efforts will be taken to scale up engagements between Government and players in the pharmaceutical industry to come up with a mutual agreed solution. Furthermore, going forward, Cabinet resolved as follows:
a) that the Reserve Bank of Zimbabwe should urgently assist the packaging industry as it is affecting the prices of most products;

b) that a Foreign Currency Utilisation Monitoring Mechanism be established to monitor those companies that are receiving foreign currency from the Reserve Bank of Zimbabwe;

c) that a re-industrialisation strategy involving targeted support for key local manufacturers to be identified through an industrial audit exercise be urgently undertaken; and

d) that ongoing efforts to boost medical supplies involving government to government arrangements with India, toll manufacturing and other financial facilities be expeditiously concluded.

3. Measures to Prevent Road Carnages and Ameliorate the Plight of Road Accident Victims
Cabinet expressed grave concern over the recent road traffic accident which took place near Rusape and which claimed 46 lives. To minimise such painful occurrences and alleviate the plight of road traffic accident victims, Cabinet resolved as follows:
a) to call for greater enforcement of the country’s road traffic regulations through the use of integrated traffic management systems and increased highway police patrols;

b) that a Road Accident Compensation Fund be urgently set up to help ameliorate the plight of those injured through road accidents and the bereaved families; and

c) drivers of public passenger vehicles be required to undergo defensive driving examination and re-testing after every two years.

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