Completed Development AidData Chinese Aid

China Eximbank provides RMB 61 million concessional loan for District Development Fund (DDF) Equipment Project

¥61.66M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Zimbabwe
Country	Zimbabwe
Start Date	Feb 23, 2001
End Date	Jun 06, 2031
Duration	11,060 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`63469`

Grant Description

China Eximbank provides RMB 61 million concessional loan for District Development Fund (DDF) Equipment Project On February 23, 2001, China Eximbank signed an RMB 61,660,000 ($8.6 million) government concessional loan (GCL) agreement with the Government of Zimbabwe for the District Development Fund (DDF) Equipment Project.

However, the face value of the loan was subsequently revised to RMB 59,090,833.33.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: a 20 year maturity (final maturity date: 2021)

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate3%

The project facilitated the acquisition of equipment for the development, maintenance and upgrading of road infrastructure.

However, there are signs that the China Eximbank loan contracted by the Government of Zimbabwe for the DDF Equipment Project has underperformed financially. As of 2018, the borrower had accumulated principal and interest arrears and penalties worth $395,162.14. The loan’s amount outstanding (including principal, interest, and arrears) was $2,487,811.44 as of September 2021.

📋 Staff Comments

1. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI identifies the maturity of this loan as 20-years. AidData records the maturity (20-years) that is reported Zimbabwe’s Ministry of Finance and Economic Development in its 2019 Blue Book Estimates of Revenue and Expenditure.

📚 Sources & References

China in Zimbabwe: Exploring the Political and EconomicImpacts of Chinese Engagement in the Zimbabwean Crises, 2019_Blue_Book_Combined (1)
Mapping Chinese Development Assistance in Africa
Chinese Loans to Africa Database
Aiding Transparency: What We Can Learn About China ExIm Bank’s Concessional Loans, 2019 Blue Book Combined
STATEMENT OF PUBLIC DEBT - 2021
NATIONAL ASSEMBLY HANSARD 24 AUGUST 2022 VOL 48 NO 71
A research report on Zimbabwe Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.