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Zimbabwe recieves $600 Million Worth Of Loans From Botswana.

by reputationpoll
August 21, 2019
in Finance, People
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Zimbabwe recieves $600 Million  Worth Of Loans From Botswana.
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Botswana has offered to lend Zimbabwe $600 million to support its diamond industry and local private firms, amid a severe dollar crunch in the southern African nation.

There are few signs the flow of foreign currency is improving in Zimbabwe after it ditched a discredited 1:1 dollar peg for its dollar-surrogate bond notes and electronic dollars, merging them into a lower-value transitional currency called the RTGS dollar.

James Manzou, Zimbabwe’s secretary for foreign affairs, said President Emmerson Mnangagwa and Botswana’s President Mokgweetsi Masisi are expected to sign the loan agreements in Harare on Thursday.

The loan will consist of $500 million dollars for Zimbabwe’s diamond industry and a further $100 million to help private companies, whose operations have been hamstrung by the dollar shortage,

According to Manzuo, Zimbabwe is also appreciative of the $500 million diamond facility offered to it by Botswana,

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Manzou, who could not be reached for comments, did not give any details on the diamond loan.

Early Last month, South Africa said it had turned down Zimbabwe’s request for a $1.2 billion loan.

Nevertheless, In early 2016, since the government kicked out private companies from the eastern Marange fields after they declined to merge under the state-owned mining company, Zimbabwe`s diamond sector had always struggled.

Relations between Zimbabwe and Botswana have improved recently following a strained period when Botswana’s ex-President Ian Khama, who stepped down in 2018, routinely criticized Zimbabwe’s former strongman Robert Mugabe for holding on to power for too long.

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