United Nations coordinator and UNDP resident representative in Zimbabwe Victor Angelo refused to discuss the issue, saying only: "The offer is still on the table."
International donors, most of them reluctant to release money directly to the Harare authorities, had been on standby for the launch of the fund, the sources said.
More funds were expected to be released in addition to the US$85 million that was expected to kick-start the fund, with local private companies without foreign currency allowed to borrow cheaply from the fund to pay for food imports.
But the government, which has banned companies other than its Grain Marketing Board (GMB) from trading in the two staples maize and wheat, is said to have objected to the fund saying private sector involvement in food importation would push up prices.
The prices of milled maize and bread - as indeed those of virtually all other basic food commodities - are controlled by the government.
International donors, most of them reluctant to release money directly to the Harare authorities, had been on standby for the launch of the fund, the sources said.
More funds were expected to be released in addition to the US$85 million that was expected to kick-start the fund, with local private companies without foreign currency allowed to borrow cheaply from the fund to pay for food imports.
But the government, which has banned companies other than its Grain Marketing Board (GMB) from trading in the two staples maize and wheat, is said to have objected to the fund saying private sector involvement in food importation would push up prices.
The prices of milled maize and bread - as indeed those of virtually all other basic food commodities - are controlled by the government.