Government, through the Ministry of Finance and Economic Development will guarantee US$750 000 of a CBZ loan to Luxaflor Roses, under a COVID-19 stimulus package for local companies.
Luxaflor Roses is the leading grower and exporter of high quality roses in Zimbabwe and Africa with the mission to meet and exceed customer expectations through growing high quality roses. The market competition of the company has been under severe threat because of the situation in Zimbabwe.
The guarantee to Luxaflor Roses comes after the government announced a Z$18 billion COVID-19 support package for local businesses last year. The package included guarantees of up to Z$2.5 billion for bank loans accessed by industries for working capital.
The Ministry of Finance and Economic Development issued a gazette which said that the loan to Luxaflor Roses is to finance the procurement of raw materials for production and export of roses under the COVID-19 Economic Recovery and Stimulus Package.
“It is hereby notified, in terms of section 300(3) of the Constitution of Zimbabwe, as read with section 18(2) of the Public Debt Management Act [Chapter 22:21], that the Minister of Finance and Economic Development hereby issued the following: Guarantee, binding the Government of Zimbabwe as surety for the repayment of US$750,000,00 (50% of the facility) to Luxaflor Roses (Private) Limited from CBZ Bank Limited to finance the procurement of raw materials for production and export of roses under the COVID-19 Economic Recovery and Stimulus Package,” reads the notice.
Under this COVID-19 Economic Recovery and Stimulus Package facility, qualifying companies apply and access funding through banks, with government providing guarantees. It is through this facility that companies like the Mbano Manor Hotels received governments guarantee in March.
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