News / National
Zimbabwe to get a $70 million loan from Botswana
24 Feb 2011 at 01:36hrs | Views
Botswana will loan Zimbabwe $70 million to help revive its mining and manufacturing industries, a Zimbabwean cabinet minister said Wednesday.
"The cash flow position for the government of Zimbabwe is a cause for concern and this BIPPA (Bilateral Investment Promotion and Protection Agreement) will open the window of opportunity to access the 500 million pula ($70 million) for the lines of credit from Botswana," economic planning minister Tapiwa Mashakada told journalists.
The deal is expected to be signed next month, he said.
A BIPPA is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in another state.
In 2009, Botswana pledged $70 million to boost Zimbabwe's ailing economy and support key industries that had either shut down or were operating far below capacity.
Zimbabwe requires $10 billion to help revitalise its ruined economy, but is only generating $2 billion, Mashakada said.
He said the government was pursuing another grant of $2 billion pledged by South Africa.
"South Africa promised two billion and we are also going to pursue that," he said.
"We will focus on South Africa's credit line now that we have disposed Botswana," he said.
Western donors have announced that they will not lend money to Zimbabwe or lift sanctions against President Robert Mugabe and members of his inner circle, demanding reforms in a power-sharing government with his rival Prime Minister Morgan Tsvangirai.
"The cash flow position for the government of Zimbabwe is a cause for concern and this BIPPA (Bilateral Investment Promotion and Protection Agreement) will open the window of opportunity to access the 500 million pula ($70 million) for the lines of credit from Botswana," economic planning minister Tapiwa Mashakada told journalists.
The deal is expected to be signed next month, he said.
A BIPPA is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in another state.
In 2009, Botswana pledged $70 million to boost Zimbabwe's ailing economy and support key industries that had either shut down or were operating far below capacity.
Zimbabwe requires $10 billion to help revitalise its ruined economy, but is only generating $2 billion, Mashakada said.
He said the government was pursuing another grant of $2 billion pledged by South Africa.
"South Africa promised two billion and we are also going to pursue that," he said.
"We will focus on South Africa's credit line now that we have disposed Botswana," he said.
Western donors have announced that they will not lend money to Zimbabwe or lift sanctions against President Robert Mugabe and members of his inner circle, demanding reforms in a power-sharing government with his rival Prime Minister Morgan Tsvangirai.
Source - Byo24News
