No SA bailout for Zimbabwe
Fanuel Jongwe - South African President Cyril Ramaphosa concluded a much-anticipated visit to Zimbabwe on Tuesday, dashing any lingering hopes that his country would bail out its economically-troubled neighbour.
Ramaphosa commended the new administration of Emmerson Mnangagwa for its bid to revive the economy and promised to explore a number of options of financial help.
But otherwise he made no concrete offer of help, voicing a "commitment to work with Zimbabwe in addressing the socio-economic challenges."
"South Africa stands ready to render support to Zimbabwe within our means in your quest for economic renewal," he said, during the talks held at a Harare hotel.
Last year Zimbabwe requested US$1.2 billion in emergency credit from South Africa, the most advanced economy south of the Sahara, but Pretoria indicated it did not have the funds.
In a joint statement issued after the 24-hour visit, the two governments said they were exploring ways to help Zimbabwe financially.
One of them would be a loan facility from South African private banks to the Zimbabwe private businesses.
The loans will be guaranteed "by the South African government with an appropriate counter-guarantee from the Zimbabwe government", said the statement.
An almost similar deal was struck last month with the diamond-rich Botswana, involving a US$100-million credit from private banks in both countries but available to Botswana private companies doing business in Zimbabwe.
"We not giving them a single loan," president Mokgweetsi Masisi said in Gaborone after a visit to Harare, dismissing media reports that the credit was being made available by the state.
Ramaphosa commended the new administration of Emmerson Mnangagwa for its bid to revive the economy and promised to explore a number of options of financial help.
But otherwise he made no concrete offer of help, voicing a "commitment to work with Zimbabwe in addressing the socio-economic challenges."
"South Africa stands ready to render support to Zimbabwe within our means in your quest for economic renewal," he said, during the talks held at a Harare hotel.
Last year Zimbabwe requested US$1.2 billion in emergency credit from South Africa, the most advanced economy south of the Sahara, but Pretoria indicated it did not have the funds.
In a joint statement issued after the 24-hour visit, the two governments said they were exploring ways to help Zimbabwe financially.
One of them would be a loan facility from South African private banks to the Zimbabwe private businesses.
The loans will be guaranteed "by the South African government with an appropriate counter-guarantee from the Zimbabwe government", said the statement.
An almost similar deal was struck last month with the diamond-rich Botswana, involving a US$100-million credit from private banks in both countries but available to Botswana private companies doing business in Zimbabwe.
"We not giving them a single loan," president Mokgweetsi Masisi said in Gaborone after a visit to Harare, dismissing media reports that the credit was being made available by the state.
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Namibian Sun
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