China will loan nearly $700 million to Zimbabwe in a deal that will provide a major boost to the struggling southern African nation.
The loans awarded by China’s Export-Import Bank include $342 million for agricultural equipment and machinery, $99.5 million for health equipment and supplies, and $144 million for the renovation of Harare’s water and sewerage system.
China also provided $102 million to Zimbabwe’s government and two grants worth $14 million.
While signing the loans, China has demanded that Zimbabwe’s government refrain from taking over Chinese businesses as part of its indigenisation programme. The Asian country is actively pursuing resources in mineral-rich Zimbabwe, including gold, diamonds, chrome, coal and the world's second biggest reserves of platinum.
The loans were awarded during an official visit to Harare at the weekend from China’s vice premier Wang Qishan, who led a delegation that included the president of China’s Export-Import Bank.
Zimbabwe has been finding it difficult to attract financial help in the form of foreign aid recently, with the West demanding political and economic reforms as a condition of resumed lending.
