NewZWire explains the Billion Pula credit extended to Zimbabwe which was announced this week. The amount is equivalent to about US $93 million.
Here’s what the deal is about:
- There’s no money exchanging hands between the governments
- Private lenders in Botswana are loading their money and they will be guaranteed by the Botswana government through Botswana Insurance Company.
- Zimbabwe has also been asked to guarantee the loans similarly in case of default
- For Botswana, this is a way for its companies to ‘invest’ in Zimbabwe and to diversify from Diamond industry
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More: newZWire