Zimbabwe Receives $250 Million Credit Facility from Afreximbank

The African Export-Import Bank Ltd. has agreed to give Zimbabwe a $250 million, three-year credit facility, according to people familiar with the transaction.

As much as $150 million of the funds are expected to be used for buying fuel and the rest for other essential services, said the people, who asked not to be identified as the agreement isn’t public.

Humphrey Nwugo, Afreximbank’s regional chief operating officer, declined to comment when called by Bloomberg. Central bank Governor John Mangudya couldn’t immediately be reached for comment.

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%.

©2020 Bloomberg L.P.

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