TALKS between South Africa and Zimbabwe are being finalised to give a R900 million (about N18 billion) loan to Zimbabawe to help the cash-strapped country fund its presidential and parliamentary elections slated for June.
The National Treasury spokesman, Mr Phumza Macanda, told newsmen on Wednesday in Johannesburg that discussions between the two countries `is at crucial stage’.
“South Africa and Zimbabwe are in discussions on whether the country will give Zimbabwe some financial assistance.
“We really don’t have much to go on because the discussions are at a sensitive stage.
“The terms and conditions of whatever financial assistance are being discussed and we don’t have any details on the loan facility beingn discussed,’’ Macanda said.
The News Agency of Nigeria (NAN) reports that Zimbabwean finance minister Tendai Biti on April 16, said his treasury
did not have the capacity to fund the elections and that his country needed about R1.2bn (about N 24 billion) to conduct the elections.
Biti said that the Zimbabwean government wrote to the UN, South Africa and Angola soliciting for loans.
He said that Zimbabwe is expecting South Africa to contribute R 900 million (about N 18 billion) out of the said amount.
“I am aware that the South African cabinet has already made a decision and it is a positive one,’’ Biti said.
Meanwhile, South African Parliament has asked the Finance Minister Pravin Gordhan to explain whether South Africa
has given Zimbabwe the R900 loan.
A statement, by the South African Treasury Department on Wednesday said the government had not given the government Zimbabwe any form of loan.
The statement, however said that negotiations about payment terms and conditions were still on-going.
Zimbabwe government has warned South Africa that if it fails to assist with the money, it could again face a flood
of Zimbabweans fleeing into the country in search of greener pastures.