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Stricken Air Zimbabwe fails to raise much-needed investment

‘A process to solicit for a strategic partner or investor was undertaken, but none of the parties that expressed interest.’
Image: Shutterstock

Zimbabwe’s troubled national airline has failed to secure outside investment, dealing a blow to government plans to sell state-owned assets and secure much-needed revenue.

The airline, which in October 2018 was placed under administration, a form of bankruptcy protection, received expressions of interest from 10 international investors and had short-listed three bidders.

“A process to solicit for a strategic partner or investor was undertaken, but none of the parties that expressed interest and submitted bids were successful,” the airline’s administrator, Reggie Saruchera, said in an emailed statement on Thursday, without identifying the bidders.

Restructuring of state-owned enterprises is a cornerstone of President Emmerson Mnangagwa’s reform agenda to revive an economy that has halved in size since 2000, and alleviate a crippling shortage of foreign currency.

The airline has outstanding debt of about $370 million, and Saruchera recommended this be settled before seeking fresh investment. It will lease out two Boeing 777 jetliners it bought from Malaysia Airlines in 2018 and has received nine bids for them, he said.

© 2020 Bloomberg

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Hmmm …. “Zimbabwe’s troubled national airline has failed to secure outside investment, dealing a blow to government plans to sell state-owned assets and secure much-needed revenue.”

Shortly to be coming to an airline in your neighbourhood. Watch this space!

“A process to solicit for a strategic partner or investor was undertaken, but none of the parties that expressed interest and submitted bids were successful,”

Did Tito or Pravin say the other day that you couldn’t sell SAA for a Rand?

The Zim tragedy just keeps giving and giving. To follow ZANU PF’s disastrous policies would seem like a recipe for failure but not for the ANC.

It’s bizarre.
Its almost as thu those in power currently have never actually built anything…

Everything in Africa is bankrupt. Nothing works properly .Too bad Rommel was stopped in North Africa those years.

End of comments.

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