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The government on Tuesday extended a bail-out package of more than ZW$4 billion to Premier Service Medical Aid Society (PSMAS) to help restore the company’s operational viability.
In a statement, the Secretary to the Service Commissions, Rosemary Tsitsi Choruma, said the funds will be used to clear salary arrears for PSMI staff as well as enable the medical insurance company to reopen healthcare facilities that had closed down. Said Choruma:
<blockquote>
Government wishes to inform all stakeholders of a bail-out package that it extended yesterday (Tuesday) to Premier Service Medical Aid Society (PSMAS) to the tune of ZWL$ 4, 258, 518.459.18.
The bail-out package is intended to resuscitate operations at the society and support PSMI, some of whose medical facilities had closed in recent weeks.
The injection of funds will enable the restoration of operations at the embattled medical insurance group through, among other support, the clearance of salary arrears for PSMI staff.
Also contained in the bail-out package is support towards the clearing of third-party arrears, which had suffocated operations at the medical aid society.
This development is expected to enable the re-opening of PSMI healthcare facilities across the country and restore operational viability.
Civil servants who subscribe to PSMAS are expected to be able to access healthcare services from the society’s clinics timeously.
</blockquote>
She said the latest injection of funds to PSMAS follows prior support by Government to the tune of ZW$999 million monthly, 60% of which had been intended for liquidation of financial obligations to creditors, PSMI included; while 40% had been for channelling towards PSMAS operations.
Choruma said a forensic audit of both PSMI and PSMI is ongoing which when completed will help deal with the governance issues. | <a href="https://healthtimes.co.zw/2022/11/08/govt-bails-out-psmi-and-psmas/">ZBC News</a>

Pindula News

Govt Extends $4 Billion Bailout To PSMAS & PSMI

The Zimbabwe Football Association (ZIFA) is yet to avail a relief package to cushion local clubs from the financial crisis caused by COVID-19 as it promised.
Two weeks ago, ZIFA president Felton Kamambo promised to bail out the Premier Soccer League (PSL) after the association received a stimulus package from FIFA and the Confederation of African Football (CAF), the world and continental football governing bodies respectively.
FIFA provided a relief package of US$500 000 to all its member associations while CAF availed US$200 000 to each association.
Meanwhile, Dynamos chairperson Isiah Mupfurutsa told the Daily News that while the club’s players’ salaries are being catered for by sponsors, additional support is needed to take care of other needs. Said Mupfurutsa:
<blockquote>If we get money from Zifa it will be most welcome. We are already in a critical situation.
We have our budget but it has been strained. I’m just hoping that Zifa will speed up the process and bail out clubs because it’s not looking okay.</blockquote>
The 2020 Castle Lager Premiership season was scheduled to start in March but with a nationwide lockdown in place, those plans had to be shelved.
PSL clubs depend mostly on gate takings to fund their operations and after four months without football, they are now in dire financial straits.
<h4>More: <a href="https://dailynews.co.zw/clubs-feel-the-pinch-as-zifa-remains-mum-on-bailout-package-for-psl/" rel="noopener noreferrer" target="_blank">Daily News</a></h4>

ZIFA Quiet On PSL Bailout  Package

Chinese Foreign Affairs Minister Wang Yi reportedly told President <a href="https://www.pindula.co.zw/Emmerson_Mnangagwa" rel="noopener noreferrer" target="_blank">Emmerson Mnangagwa</a> that no financial bailout would come from China during his recent visit to Zimbabwe.
According to The Independent, Wang said Zimbabwe can only benefit from China through projects under China’s Belt and Road Initiative (BRI) and the Forum on China Cooperation (FOCAC).
Wang held separate meetings with President Mnangagwa, Vice President <a href="https://www.pindula.co.zw/Constantino_Chiwenga" rel="noopener noreferrer" target="_blank">Constantino Chiwenga</a>, and Foreign Affairs minister <a href="https://www.pindula.co.zw/Sibusiso_Moyo" rel="noopener noreferrer" target="_blank">Sibusiso Moyo</a>. The Independent quotes its source, who attended the high-level meetings, as saying:
<blockquote>China attaches immense importance to its bilateral relationship with Zimbabwe. This was underscored by the Chinese Foreign minister’s visit to Zimbabwe.
Minister Wang emphasised to President Mnangagwa that Zimbabwe must implement a comprehensive economic reform agenda pivoted on tackling corruption.</blockquote>
In April 2018 China refused to grant President Mnangagwa a US$1,5 billion liquidity rescue package the Zimbabwean government desperately needed to revive the country’s ailing economy.
Meanwhile, the European Union has bemoaned Harare’s gross abuse of human rights while Japan has also urged the Zimbabwean government to deal with rampant corruption.
<h4>More: <a href="https://www.theindependent.co.zw/2020/01/17/no-bailout-china-tells-zim-govt/" rel="noopener noreferrer" target="_blank">The Independent</a></h4>

China Ignores Zimbabwe's Plea For A Bailout Package, Again

South African President Cyril Ramaphosa said that his country does not have a financial package for Zimbabwe at the moment.
He was speaking at the end of SA-Zimbabwe bi-national commission in Harare on Tuesday.
Responding to reporters on the possibility of financial assistance for Zimbabwe, Ramaphosa said:
<blockquote>Even as we deal with difficult issues, we find that we always have solutions to the matters that you are raising, which you have referred to as financial issues; we have discussed this in great detail and our discussions are ongoing and our various teams are busy finding workable solutions.
… Because of the strength of our relationship, we have no doubt whatsoever that we are going to find solutions that will lead to the strengthening of our two respective economies so that we can address the challenges that both our countries are facing.</blockquote>
Ramaphosa his country has a lot of challenges that it has to grapple with.
<h4>Related:</h4>
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<h4><a href="https://news.pindula.co.zw/2019/03/12/sa-considering-options-on-availing-funds-for-zim-businesses/">SA Considering Options On Availing Funds For Zim Businesses</a></h4>
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<h4>More: <a href="https://www.newzimbabwe.com/no-financial-assistance-to-zimbabwe-for-now-says-ramaphosa/">NewZimbabwe.com</a></h4>

SA Has No Money To Give To Zimbabwe Now - Ramaphosa

South African President Cyril Ramaphosa arrives in the country today to co-chair the Bi-National Commission (BNC) with President Emmerson Mnangagwa.
Ramaphosa’s visit comes on the heels of President of Botswana Keabetswe Masisi, who signed several memoranda of understanding (MoUs) with Mnangagwa.
A statement released by the South African government says:
<blockquote>To date, the two countries have signed 45 agreements, which cover a wide range of fields, including trade and investment, health, labour, migration, defence, taxation, tourism, scientific and technological cooperation, water and environment.</blockquote>
The permanent secretary in the ministry of Information Nick Mangwana had this to say:
<blockquote>We can’t be a country pushing for great relationships with countries afar when we have poor relations with those countries with which we share so much including borders.
Regarding MoUs or bailouts, let’s not be pre-emptive about the outcomes of the interactions between our countries’ leadership. Announcements will be made in their due season.</blockquote>
However, analysts have warned that South Africa will not be giving Zimbabwe a bailout package. Stephen Chan had this to say:
<blockquote>The South Africans have already made it clear they have not much to give. It’s Ramaphosa’s election year.
He can’t be seen by his voters to be giving billions to Zimbabwe when the South African economy itself needs a kick-start.</blockquote>
Another analyst, International Crisis Group consultant Piers Pigou said:
<blockquote>It provides an opportunity for Ramaphosa to see how best South Africa could help move reform and recovery options forward.
But this requires Ramaphosa excavating the full picture, not a selective sanitised version of developments, as evidenced from minister Ncube’s recent reform progress report to the IMF.</blockquote>
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<h4><a href="https://news.pindula.co.zw/2019/02/19/sa-president-cyril-ramaphosa-to-come-to-zimbabwe-on-march-12th/">SA President Cyril Ramaphosa To Come To Zimbabwe On March 12th</a></h4>
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<h4>More: <a href="https://www.dailynews.co.zw/articles/2019/03/11/expect-no-bailout-as-sa-leader-jets-in">Daily News</a></h4>

Ramaphosa Won't Bring Bailout Package - Report

Former Minister for Finance and Economic Development Tendai Biti says that the bailout package offered by Botswana to the government of Zimbabwe is too little and insignificant.
Biti, who is MDC Alliance vice national chairperson, and Chair of the Parliamentary Portfolio Committee on Finance said that the country lacks the right micro-economic fundamentals. He said:
<blockquote>That’s a drop in the ocean. That is absolutely nothing. The industry itself needs about $2 billion to retool.
In any event, it’s not about the money. Do we have the right micro-economic fundamentals, a decent exchange rate? There is chaos with the situation of the RTGS$ [real time gross settlement dollar].
The statutory instrument shows that it’s a virtual currency and the politics is just not right, so you can pour money, but that won’t change anything.</blockquote>
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<h4><a href="https://news.pindula.co.zw/2019/02/26/govt-is-mortgaging-our-future-to-botswana-eddie-cross/">Govt Is Mortgaging Our Future To Botswana – Eddie Cross</a></h4>
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<h4><a href="https://news.pindula.co.zw/2018/11/05/zim-already-mortgaged-to-sakunda-holdings-george-charamba/">Zim Already Mortgaged To Sakunda Holdings: George Charamba</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/02/26/zim-could-sink-deeper-into-debt-after-botswana-bailout-packages/">Zim Could Sink Deeper Into Debt After Botswana Bailout Packages</a></h4>
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<h4>More: <a href="https://www.newsday.co.zw/2019/02/ed-mortgages-diamonds-to-bots/">Newsday</a></h4>

Botswana Bailout Package Won't Change Anything - Biti

The government of Botswana has extended a US$ 500 million dollar package to Zimbabwe that is backed by Chiadzwa diamonds.
A further one billion pula bailout package has been earmarked for the private sector.
The deals were revealed by Foreign Affairs and International Trade ministry secretary Joe Manzou during the inaugural session of the Zimbabwe-Botswana Bi-National Commission in Harare on Monday. Said Manzou:
<blockquote>Zimbabwe is also appreciative of the US$500 million diamond-backed facilities offered by Botswana. I also urge this meeting of officials to work in earnest to ensure that all outstanding issues relating to this facility are finalised.
… I wish to extend my gratitude to the support extended to Zimbabwe, by Botswana, as our country embarks on a development trajectory under the new dispensation … Zimbabwe welcomes with much appreciation that Botswana proposed a P1 billion credit line facility in support of the Zimbabwe private sector.</blockquote>
<h4>More: <a href="https://www.newsday.co.zw/2019/02/ed-mortgages-diamonds-to-bots/">Newsday</a></h4>

Zim Could Sink Deeper Into Debt After Botswana Bailout Packages

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