Fresh start: UK grants first loan to Zimbabwe in 24 years

The United Kingdom will provide the first commercial loan to the Zimbabwean private sector since 1994, local media reported on Wednesday.

The Financial Times reported that the CDC Group development institution, owned by the UK Government and the Standard Chartered Bank, would lend $100m to Zimbabwean companies.

iHarare reported that Governor of Reserve Bank of Zimbabwe, John Mangudya, confirmed this latest development.

“This is a significant move, in that it is a medium-term facility to be used for the revival of companies in Zimbabwe.

“There has been a deficit of medium-term funding, which was not forthcoming to Zimbabwe.

“This is going to improve the competitiveness of the industry in Zimbabwe in terms of retooling and improvement of productivity.”

Another media outlet added, citing Nick O’Donohoe, the CEO of the CDC Group, that the last direct loan provided by the institution to Zimbabwe took place in 1994 and was given to a fish farm.

Since the 2000s, Zimbabwe has been affected by the sanctions imposed by the U.S. and the EU over violations of human rights and democratic norms under the presidency of former leader Robert Mugabe.

The restrictions had resulted in a collapse of foreign loans and investments to the economy of the African nation.

The situation started changing in November, when Emmerson Mnangagwa, Zimbabwe’s former vice president, was sworn in as president.

The inauguration took place after the army deployed its vehicles to Harare and confined Mugabe to his house.

The Zimbabwean parliament subsequently approved Mugabe’s impeachment, after which the long-serving leader stepped down.

 

(Sputnik/NAN)