Zimbabwe Secures $250 Million Loan from Afreximbank

Zimbabwe Secures $250 Million Loan from Afreximbank

Zimbabwe has joined a series of African nations securing credit facility from multilateral institutions to mitigate COVID-19 risk.

The African Export-Import Bank Ltd has agreed to grant the embattled African nation a $250 million three-year credit facility, according to a source familiar with the details.

The anonymous source, who spoke with Bloomberg correspondence, said about $150 million of the said funds are expected to be used to finance fuel and the rest on essential services.

The southern African nation, which has previously secured funding from Afreximbank using minerals as collateral, is blocked from accessing loans from the International Monetary Fund and other multilateral lenders because of unpaid debts.

Zimbabwe is facing an economic crisis with shortages of foreign currency, fuel and food and with inflation surging to 786%.