Zimbabwe will receive a $250 million credit facility from the African Export-Import Bank as the country battles an economic crisis. A Bloomberg source reports that $150 million from the transaction will buy fuel, with the rest funding essential services.
The country is currently experiencing a shortage of fuel and essentials like food. Moreover, the weakening Zimbabwean dollar continues to push the country’s inflation, currently at 786%.
Last week, fuel prices rose by 152%, while the cost of cornmeal jumped by 30%. As a result, the country is in dire poverty, with U.N aid agencies saying that 7.7 million people require food assistance.
Zimbabwe locked out of Credit
The country cannot access loans from multilateral lenders like the International Monetary Fund, owing to its unpaid debt. As a result, the country previously secured Afrieximbank funding using minerals as collateral.
Last week, the country banned mobile money transactions and trading on the stock exchange in an effort to rein in on its tumbling currency.
AfDB earlier warned that the economy could only turn around if necessary monetary reforms are implemented.