Our Star of the Week is the government of Botswana that in true Pan-African style offered to lend Zimbabwe nearly $600 million to help ease that SADC country’s economic crisis.
The loans will be offered to Zimbabwe’s private sector and the diamond industry. Zimbabwe’s secretary for foreign affairs, James Manzou, unveiled the offer ahead of a visit this week to Harare by Botswanan President Mokgweetsi Masisi. “Zimbabwe welcomes with much appreciation that Botswana proposed a 1 billion Botswana pula ($94.5 million, 83.15 million euro) credit facility, in support of the Zimbabwe private sector,” Manzou told a newspaper in Harare.
“Zimbabwe is also appreciative of the US$500 million diamond facility offered to it by Botswana,” he said.
Manzou said the loans are expected to support his country’s economic recovery. Zimbabwe descended into economic ruin during the 37-year rule of Robert Mugabe who was forced out in 2017. His successor Emmerson Mnangagwa has failed to solve the crisis with the country running desperately short of foreign currency. The deals were expected to be signed yesterday during Masisi’s visit to Harare.
The report did not give details about the loan, such as the repayment schedule and interest rate. A request for $1.2 billion in emergency credit from neighbouring South Africa to help alleviate the crisis failed after Pretoria indicated it did not have the funds.