Harare, (New Ziana) – Cabinet on Tuesday adopted the principles for the proposed law that seeks to relieve struggling national carrier, Air Zimbabwe of its US$379 million debt burden to make it attractive for investors and allow for its turnaround.
Known as the Air Zimbabwe Debt Assumption Bill, its eventual passage into law will allow for clearance of the airline domestic and external debt by government, paving way for the appointment of a new board and management.
Air Zimbabwe is under a Reconstruction Order since October 2018, a move that was engineered to protect the parastatal from legal action and attachment of its assets.
Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said the Bill, which has to go through Parliament, will among others include the debt assumption modalities, terms and conditions of the debt settlement plan as well as recovery plan for the debt.
“The Bill is in terms of the Public Debt Management Act as read with the Statutory Instrument 79 of 2019,” Mutsvangwa told a post-Cabinet media briefing.
“It is expected that the Bill will ensure revival of the airline and its associated companies from perennial loss-making entities, into enablers of growth in tourism, trade, commerce and the economy in general.”
From being one of Africa’s top airlines in the 80’s, Air Zimbabwe’s fortunes have waned overtime due to various factors including mismanagement.
The carrier has at times survived on government bailouts and like the proverbial Phoenix, is trying to find its wings and rise again.