Botswana comes to the rescue and offers to lend broke Zimbabwe nearly $600 million

Botswana’s President Mokgweetsi Masisi.
  • Botswana has offered to lend cash strapped Zimbabwe nearly $600 million to help ease its economic crisis.
  • The loans will be offered to Zimbabwe’s private sector and the diamond industry
  • The deals are expected to be signed on Thursday during Masisi’s visit to Harare.

After crisscrossing the world with a begging bowl and still returning home with empty handed, President Emmerson Mnangagwa can now afford to breathe easy after diamond-rich Botswana came to his rescue.

Botswana has offered to lend cash strapped Zimbabwe nearly $600 million (Sh60 billion) to help ease its economic crisis, Harare’s state-owned daily The Herald reported on Tuesday.

The loans will be offered to Zimbabwe’s private sector and the diamond industry, said the report.

Zimbabwe’s secretary for foreign affairs, James Manzou, unveiled the offer ahead of a visit to Harare by Botswana’s President Mokgweetsi Masisi.

Zimbabwe welcomes with much appreciation that Botswana proposed a 1-billion Botswana pula ($94.5m) credit facility, in support of the Zimbabwe private sector,” Manzou told the newspaper.

The foreign affairs minister said the loans would go a long way to “support our economic recovery”.

“Zimbabwe is also appreciative of the $500m diamond facility offered to it by Botswana,” he said.

The deals are expected to be signed on Thursday during Masisi’s visit to Harare.

The report however, did not give details about the loan, such as the repayment schedule and interest rate.

Zimbabwe, which was Africa’s once bread basket, descended into economic ruin during the 37-year rule of former President Robert Mugabe and has since became a basket case.

Mr. Mugabe was forced to resign last year after he was toppled by the army.

His successor Emmerson Mnangagwa has so far failed to solve the crisis, with the country running desperately short of foreign currency.

President Mnangagwa kicked off the new year by travelling to Russia, Belarus, Azerbaijan and Kazakhstan in an effort to raise investment for his economically blighted nation.

He sought and failed to get a loan from Russia, Kazakhstan and Azerbaijan, before returning home.

A request for $1.2bn in emergency credit from SA also failed after Pretoria indicated it did not have the funds.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Zuchu forced to apologize to fans after viral video raised eyebrows

Zuchu forced to apologize to fans after viral video raised eyebrows

Willy Paul wins against Diana Marua in court

Willy Paul wins against Diana Marua in court

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi