The African Export Import Bank (Afreximbank) says it is finalising a $500 million loan facility for Zimbabwe, to help secure the foreign-currency starved southern African country’s imports.
Zimbabwe is experiencing a shortage of foreign currency, blamed mainly on a huge trade deficit caused by the collapse of its key agriculture and manufacturing sectors.
The country, which adopted the use of multiple foreign currencies — chiefly the United States dollar and South Africa’s rand — in 2009 to tame hyperinflation, is gripped by acute shortages of cash dollars. Prices of basic goods, public taxis and medicines have risen in the last few weeks.
The Afreximbank said it had held discussions on the loan with Finance Minister Mthuli Ncube at last week’s International Monetary Fund and World Bank Group meetings in Bali, Indonesia.
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