Botswana’s government has denied reports that it will provide a $600m credit facility to debt-ridden Zimbabwe, dealing a new blow to President Emmerson Mnangagwa’s efforts to jump-start its ailing economy. Zimbabwe is experiencing its worst economic crisis in a decade marked by high inflation, which peaked above 50% in January, and acute shortages of foreign currency. The country owes the World Bank $1.4bn, as well as African Development Bank and other international creditors. It is seeking financial bailouts from its Southern African Development Community neighbours as it is blacklisted by multilateral lenders including the World Bank and IMF. Its international debt stands at $10bn. The southern African nation reportedly requested r $1.2bn in emergency credit from SA but was turned down. In a statement to Business Day on Wednesday, Botswana’s permanent secretary Carter Morupisi denied that Botswana would provide the loan to Harare. “The office of the president wishes to inform memb...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now