Apart from the short term credit facility South Africa is also planning to help Zimbabwe clear off its US$7.4 billion external debt owed to the IMF, World Bank and Paris Club, Tito Mboweni didn’t mention the actual figures that South Africa will contribute but said the two governments are working together to find out how they can settle the debt.

According to Mboweni Zimbabwe had previously provided collateral for an existing credit facility they have with the South African Reserve Bank in the form of SA Land Bank Bills and has always repaid loans under this facility in the past.

Zimbabwe has been facing serious economic challenges which include fuel shortages and price hikes, this all started when the new Finance Minister of Zimbabwe, Prof Mthuli Ncube introduced austerity measures and the controversial 2% tax on all electronic transactions.

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