Zimbabwe scrambles to resolve cash crunch | IOL Business Report

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Zimbabwe scrambles to resolve cash crunch busrep

JOHANNESBURG - Zimbabwe is trying to clear its arrears with the World Bank and African Development Bank so it can unlock fresh credit lines to offset a liquidity and foreign exchange crunch.

Sifelani Jabangwe of the Confederation of Zimbabwe Industries has stressed that forex sellers “are not on the market but buyers are there in abundance”, which is constricting fund flows. Zimbabwe exports mainly minerals, agricultural products, horticultural and some manufactured products. It imports just about every other finished product as local manufacturers struggle to sustain operations.

Meanwhile, Zimbabwe’s treasury is pursuing funding facilities from South Africa, China, Botswana and the UK. “We are looking at other credit lines through South Africa, China and Botswana. I have been working on a structure to raise money from the UK for agriculture. We have lost 80 credit lines because we have not cleared our arrears,” Ncube said.

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