Business Correspondent
The U.S. finance agency has rejected a proposal from a Zimbabwean consortium to fund a new dam in Bulawayo, despite efforts by Ian Hume, a former World Bank executive, to lobby for the project.
Hume was hired by Glass Block Bopoma Dam Company (GBBDC), a consortium of three Zimbabwean businesses, to secure $100 million in funding from the U.S. International Development Finance Corporation (DFC).
The proposal aimed to address Bulawayo’s water crisis by building the Glass Block Bopoma Dam in Filabusi, which would be privately run for 25 years before being handed over to the government. However, the DFC cited U.S. government sanctions and restrictions as reasons for not moving forward with the project.
Concerns and Challenges
- Sovereign Risk: Hume highlighted the challenges of doing business in Zimbabwe, including sanctions and poor governance.
- Government Involvement: The consortium assured the U.S. that the government would not be directly involved in the project, but would only provide regulatory oversight.
- Alternative Projects: The government’s Gwayi-Shangani dam project has been stalled due to poor funding, with some experts labeling it “smoke and mirrors”.
The rejection of the proposal highlights the complexities of doing business with American entities in Zimbabwe, despite the DFC’s aim to counter Chinese influence in Africa.
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