AfDB confirms $500m Zim loan

HARARE - The Reserve Bank of Zimbabwe is set to receive a $500 million loan from the African Export-Import Bank (Afreximbank), a move meant to arrest the sliding official foreign currency reserves and provide much-needed breathing space to the new government.

This comes as Zimbabwe is in the throes of worsening cash shortages, businesses closing, food shelves in Harare emptying and prices of basic commodities, fuel and medicines soaring.

Modalities to fully transfer the loan to the RBZ are underway, the Cairo-headquartered lender said.

The Afreximbank said it closed the deal with Finance minister Mthuli Ncube last week at the IMF’s annual meetings, normally held in Washington, but took place on the Indonesian resort island of Bali. 

“The ultimate goal of the facility is to secure payments for essential imports and to promote exports,” the bank said in statement.

“It is envisaged that this will restore foreign currency liquidity and stability in the market.”

However, the $500m assistance will not be enough and the country will have to put its house in order by enhancing exports and attracting sufficient foreign direct investment.

The military establishment has already declared the economy as a matter of national security.

Comments (1)

2 weeks ago RBZ lied by saying the US$41m they paid for fuel with had been drawn down from this US$500m facility, when the facility had not been finalised. Infact RBZ had bought the US$41m on the parallel market causing rates to gallop.

Bhonzo - 20 October 2018

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.