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HARARE, March 24 (Xinhua) -- Zimbabwe on Friday signed a loan agreement for 20.4 million U.S. dollars with the Kuwait Fund for Arab Economic Development to improve livelihoods in Beitbridge District, southern Zimbabwe, through sustainable use of water from Zhove Dam.
Zhove Dam has a capacity of 133 million cubic meters and supplies water for commercial irrigation in the district with a population of about 80,000 and also supplies Beitbridge Town's approximately 20,000 residents.
The proposed project will support commercial and communal farming through the construction of a conveyance system to irrigate about 2,500 hectares of agricultural land and boost production in citrus fruit and cash and food crops such as maize, sugar beans and tomatoes in the generally dry district.
Signing on behalf of the government, Zimbabwe's Finance and Economic Development Minister Patrick Chinamasa said the loan facility would help the country combat the effects of climate change, bring enhanced socio-economic development and alleviate poverty within the targeted communities.
"Agricultural productivity is being hampered by erratic rainfall patterns and severe droughts experienced mainly in the southern parts of the country. Managing the effects of climate change on agricultural productivity, therefore, remains a top priority for Zimbabwe," he said.
The loan will be repayable over 25 years at an interest rate of 1.5 percent per annum, with a five year grace period.
Kuwait Fund Deputy Director General Hamad Al-Omar signed on behalf of the fund.
This is the sixth loan that the Kuwait Fund has extended to Zimbabwe after initial disbursements of about 59 million dollars for the financing of projects in the roads, transportation and agriculture sectors. Enditem
