04-06-18 by Spotlight Zimbabwe

China Writes Off Zimbabwe’s Debt

 

Crecey Kuyedzwa

Harare – China has reportedly written off Zimbabwe’s debt to the Asian giant’s institutions paving way for more funding to the southern African country whose ability to access new funding has been crippled by among other things a huge debt overhang.

This is according to local radio station, ZiFM Stereo, owned by Zimbabwe’s ICT Postal and Courier Services Minister Supa Mandiwanzira, who also accompanied President Emmerson Mnangagwa on a state visit to China.

Using its twitter handle @ZiFMNews Thursday afternoon, the station said the decision was reached after meetings between Chinese President Xi Jinping and President Mnangagwa in Beijing.

President Mnangagwa is on a 5-day state visit to China where he has had meetings with his Chinese counterpart and has reportedly signed billion dollar deals including one of $1bn for upgrading a thermal power station.

Zimbabwe owes international lenders more than $10bn in both principal debt and arrears.

The country’s domestic debt has also been ballooning and is estimated to be more than $6bn.

This has seen the country struggling to get new funding from international lenders such as the IMF and the World Bank.

China itself has also been reluctant to fund Zimbabwe after the country failed to repay a $60m debt to China Export and Credit Insurance Corporation, known as Sinosure.

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  • China knows as well as everyone that Zimbabwe’s economic meltdown was caused by decades of gross mismanagement and rampant corruption. It is no secret that China was one of the foreign countries that has benefited from the rampant corruption over the last 38 years. It is no secret too that China has been helping Zanu PF rig the elections to stay in power for no other reason than for it to continue the looting!

    It is not rocket science to see that China is not cancelling its $60 million debt with Zimbabwe out of the generosity of its heart but to perpetuate the Zanu PF dictatorship. No doubt China will be bankrolling Zanu PF’s election campaign, as it has always done. Talk of a Superpower interfering in Zimbabwe’s election, it does not get more blatant than this.

    The people of Zimbabwe have a chance to end the Zanu PF dictatorship and they must step up their demands to have these flawed elections declared null and void!