Botswana’s Billion Pula Credit To Zimbabwe Explained

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

Related:

• Joe Mutizwa Praises Zimbabwe’s Agreements With Botswana

More: newZWire