The African Export and Import Bank (Afreximbank ) has pledged up to US1.5 billion in new loans and financial guarantees to Zimbabwe in a major boost for the new administration under President Emmerson Mnangagwa.
Mnangagwa in his inaugural speech last month pledged to revive the Southern African nation’s economy and provide jobs in the country dogged by an unemployment rate surpassing 80 percent.
Reuters reports Afreximbank to have been the only lender that stood by Zimbabwe during its tumultuous years under Robert Mugabe, and its announcement of the fresh package is seen as a vote of confidence for the new government.
The Cairo-based bank stood by Zimbabwe through a difficult period following cut offs by the International Monetary Fund and the World Bank for having defaulted on its debt in 1999.
Bank president and chairman Okey Oramah told reporters after a meeting with Mnangagwa and senior government officials that Afreximbank would provide $150 million to local banks to help them pay for outstanding critical imports.
”We also discussed a number of other areas that involve additional investment from us for something that will be in the order of $1 billion to $1.5 billion that will include certain kinds of guarantees to encourage investors to come to Zimbabwe.
“We…want to make sure that we support the stabilisation of the economy, that means providing liquidity to make sure that the situation where people are rushing everytime to look for cash is dealt with,” said Oramah.
Finance Minister Patrick Chinamasa promised in a budget speech last week to re-engage with international lenders, curb spending and attract investors to revive the economy.
