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QUESTIONS FOR WRITTEN REPLY

QUESTION NUMBER 394

Mr F Beukman (New NP) to ask the President of the Republic:

(1) Whether he or his Office received any representations from (a) foreign business people and/or (b) international companies during the period 1 January 2001 up to the latest specified date for which information is available on the political and economic situation in Zimbabwe; if so, (a) from whom and (b) when in each case;

(2) Whether the Government has taken any steps pursuant to such representations; if not, why not, if so, what are the relevant details?

REPLY

(1) Yes the office did receive representations from both local and foreign business people and international companies.

(2) Yes, steps have been taken. The President has engaged the President of Zimbabwe Mr Robert Mugabe and as he stated publicly on numerous occasions will continue to do so.

QUESTION NUMBER 420

Mr R Jankielson (DP) to ask the President of the Republic:

(1) (a) What is the total amount of Zimbabwe's debt to South Africa, (b) how much does it increase on average per month and (c) how much of the debt is owed to (i) Sasol and (ii) Eskom;

(2) Whether South Africa has paid any amounts to private companies on behalf of Zimbabwe, if so, (a) how much and (b) to which companies?

REPLY

(1) The South African Government has not provided any loans or credit lines to the Zimbabwe Government directly. The South African export credit reinsurance scheme does however have some exposure to ZISCO, the Zimbabwean iron and steel parastatal, while a number of South African parastatals have provided credit facilities to their Zimbabwean counterparts:

South African Export Credit and Foreign Investment Reinsurance Scheme

The South African Government has provided export credit reinsurance on exports to ZISCO, the Zimbabwean iron and steel parastatal, through the DTI's export credit reinsurance scheme. The total amount outstanding on this contract is R30 million. Arrears on this contract currently stand at R3, 7 million, but no claims have been received from the South African lender against the reinsurance fund.

Transnet

An operational business agreement exists between Spoornet and the National Railway of Zimbabwe to allow for net credit/debits between the two companies to be set-off on a regular basis. The amount outstanding fluctuates according to the net value of debits/credits between the two organisations, but no settlement problems have been experienced to date.

Eskom

Eskom provides a credit line to the Zimbabwe Electricity Supply Authority (ZESA). The outstanding balance on this account has fallen from R163 million in July 2000 to R87 million by 16 February 2001. All of these arrears are fully covered by deposits held in escrow accounts established under the debt repayment agreement.

Telkom

Telkom SA Limited extended a US$ 8 million credit facility to the Zimbabwe Posts and Telecommunications Department for the implementation of a digital link between South Africa and Zimbabwe. An amount of US$2,5 million has been drawn on this facility, with the first payment due at the end of the first quarter of 2001.

South African Reserve Bank

The Reserve Bank established an overdraft facility for the Reserve Bank of Zimbabwe in 1987, which is renegotiated on an annual basis. The facility is for a maximum amount of R75 million, all of which is fully secured by bills issued by the Land Bank of SA (currently worth R82.5 million), purchased by the Reserve Bank of Zimbabwe, and held by the SARB as collateral against this facility. The outstanding balance of the facility as of 5 March 2001 was R71.7 million.

Sasol

Sasol is a Private company and therefore we have no information as to how much money is owed to them by Zimbabwe.

(2) The South African Government has not made any payments to South African Companies on behalf of the government of Zimbabwe.

Issued by The Presidency

16 March 2001