Zimbabwe News and Internet Radio

Afreximbank pledges up to $1.5 billion to post-Mugabe Zimbabwe

By MacDonald Dzirutwe | Reuters |

The African Export and Import Bank has pledged up to $1.5 billion in new loans and financial guarantees to Zimbabwe in a major boost for new President Emmerson Mnangagwa’s government, the bank’s president and chairman said on Tuesday.

Dr Benedict Okey Oramah of Afreximbank and Mauro Bonacina of BNY Mellon
Dr Benedict Okey Oramah of Afreximbank and Mauro Bonacina of BNY Mellon

Mnangagwa, who took over last month after veteran autocrat Robert Mugabe quit following a de facto military coup, has vowed to focus on reviving the struggling economy and provide jobs in a nation with an unemployment rate exceeding 80 percent.

Afreximbank was only international lender that stood by Zimbabwe throughout Mugabe’s repressive 37-year rule, but its quick announcement of a fresh package of loans and guarantees appeared to be a vote of confidence in the new government.

Cairo-based Afreximbank was a major funder of Zimbabwe while the country was cut off from the International Monetary Fund and 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.

In August, before Mugabe’s ouster, Afreximbank provided $600 million to help Zimbabwe pay for imports and $300 million to allow it to print more “bond notes”, a quasi currency that officially trades a par with the U.S. dollar.

Zimbabwe has a foreign debt of more than $7 billion and in September said it would not be able to pay $1.8 billion in arrears to the World Bank and African Development Bank until economic fundamentals improved.

The southern African nation, which dumped its hyperinflation-hit currency in 2009, is struggling with a severe dollar crunch that has seen banks fail to avail cash to customers while importers struggle to pay for imports.

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.

On Tuesday, Chinamasa described Afreximbank as a “pillar of strength” and said the economy was “in for some very good times”.

  • $1.5bn is nothing to Zim.

  • Rovay basa ED,,Moshandisa mari Zvakanaka iyo

  • Zvkanaka

  • Gud news nt zvana biti,,,,imbwa dzevanhu kuda kuramba vachisafisa vanhu ,hatichadi takambomira nemi chakabuda hapana

  • Good news , edzai nepamunogona napo kuti ruzhinji rwurarame kwete zvewaningo ukura wachingo ukura

  • Martin wasafiswa nabiti komugabe angaakugarai bhamba hamuzvione zvinoda kufunga kwete kungoukura

  • Whilst Biti is busy calling for sunctios against his own people & expect to be voted.

    • That’s ZANU PF propaganda ,MDC never brought sanctions ,everyone in the world knows how Zanu gone against human rights and dictatorship

    • Vana Milard, makadzidza kuBorder Ghezi, Kani?

    • Tsvangirai said it clearly that his agenda is to call on sanctions until he rules

    • .VaMuzenda vakati..ZANU ichatonga kusvika madhongi avanenyanga..saka mukaona dhongi raanekanyanga kavakubudikira moziva kuti zvenyu zvaakuita.Dont lose hope…rambaimuchiseva,pasi pemufushwa panenyama.

  • Its a pledge subject to terms and conditions

  • Good friend stands with you in difficult situation not those Americans

  • Every cent should and must be accounted for pliz!!!!!!!

  • Why should they give money to seasoned ZANU PF thieves.. Kusungira mari mugumbo rengwe.Hapana chinobuda.

  • Mataura zvakanaka…. Pledge….. Kkkkkk

  • apa chamisa achingo hukura zvema Small House in Parliament….

  • More bond notes?

  • T and C apply 😲

  • After stealing 15 billion, you go around begging for 1.5 billion which is one tenth of the amount you stole. How stupid!

  • ThAnx

  • 10% 0f 15 billion