News24

Cash crunch - Zimbabwe turns to SA

2012-09-06 22:31

Harare - Zimbabwe is turning to South Africa and Angola for help in plugging a $400m hole in its budget, Finance Minister Tendai Biti said on Thursday, lamenting a lack of foreign investment and aid from its traditional Western donors.

The southern African country's economy is recovering under a coalition government formed in 2009 by President Robert Mugabe and his rival, Prime Minister Morgan Tsvangirai, but is still suffering the hangover of a decade-long recession widely blamed on Mugabe policies such as the seizure of white-owned farms.

Biti, who slashed Zimbabwe's 2012 GDP growth forecast last month from 9.4% to 5.6% due to a poor harvest and lack of donor funding, said Harare would seek at least $150m from South Africa and Angola.

"I have secured an important appointment with South Africa's minister of finance two weeks from now," he told a news conference. "In this meeting we are going to make a request for budgetary support to the tune of $100m."

Harare was also in advanced talks for a $50m credit line from oil-rich Angola, he said.

He added that he would ask Pretoria to release a R500m ($59m) grant pledged in 2009, and revive a R1.75bn credit facility created decades ago by the colonial Rhodesian government and apartheid South Africa.

The government needed nearly $400m before the end of the year to pay annual bonuses for workers, and to finance the 2012/2013 farming season and an expected referendum on a new constitution, Biti said.

Zimbabwe has struggled to attract funding from the likes of the IMF and World Bank due to external debt that Biti put at $9.1bn. Mugabe's drive to force foreign firms to hand over majority shares to local interests has also kept private investors away.

Zimbabwe was in danger of missing a revenue target of $3.4bn this year, Biti said, but added that the revised growth forecast would be met due to better-than-expected tobacco sales.

Biti also said Harare was negotiating with Beijing for a $350m loan to expand its Kariba South power station to provide an additional 300MW of power to the current 1 000MW - half of present demand.

China's Sino Hydro is the sole bidder for the project.

Speaking earlier in Harare at the launch of an energy policy, Energy Minister Elton Mangoma said Zimbabwe was planning a 100MW solar plant to be commissioned in 2013.

Comments
  • thandiwe.ngema.71 - 2012-09-06 22:36

    Piss of Mugabe - you messed up your economy - take responsibility for your stupid decisions!

      catherineangelique.swarts - 2012-09-06 22:45

      And this is happening to our beautiful country too! Very tragic.

      thandiwe.ngema.71 - 2012-09-06 22:55

      @Rooster - we won't let them mess it up!

      cindy.dunn.9 - 2012-09-06 23:58

      South africans unite.... Stand strong as a country we have kids to take care of and we have take care of our elders ..... Stand firm take a stand now as brothers,sisters,mothers,fathers,children of this country stuff color we all want the same thing. Stand up and rise as one against this government that throws their own away

      farmfreund - 2012-09-07 00:05

      swaziland also wanted a loan from SA and the Anc showed them a browneye or should a say a blackeye, SA wont lend them money, they tried before without luck,

      keith.ngobeni - 2012-09-07 00:24

      @rooster it's only few selfish individuals who want to enrich themselves by destroying this beautiful country of ours, like thandiwe said we won't let them(bastards) to ruin south Africa, even the so called ANC if we have to remove them out of the union buildings by force we can do that.

      AnthonyfromAfrica - 2012-09-07 05:00

      Tell this mugabe thug, to bring back to Zimbabwe, some of the stolen loot,he took to Hong Kong, and tell his corrupt Grace to stop going on international shopping sprees, with money she stole from the Zimbabwean people !! This is the problem with all dictators, they are not accountable to anyone, and treat the national treasure as their own bank account !!!!!

      Rob.Trianglem - 2012-09-07 06:52

      Mugarbage should be supporting us as we have most of his population here.

      daan.vandenberg.773 - 2012-09-07 09:31

      How the heii do you "budget growth" with donated money?????? Only in Africa. What a bunch of clowns!!!!!!!!!!!

      jacqui.daanevanrensburg - 2012-09-07 10:45

      Cindy,dunn.9. How do you think we should unite?.

      gordon.trevat - 2012-09-07 11:24

      Where's all the money from the nationalised mines, banks, etc?

      claudia.meads - 2012-09-07 12:12

      Somehow I do not think this would be a case study in the book: ECONOMICS FOR IDIOTS, WOODWORK STUDENTS and ROCK DRILL OPERATORS.

  • thandiwe.ngema.71 - 2012-09-06 22:38

    *Piss off RM!

      rontheogre - 2012-09-07 01:07

      Amazing! Bob has already p@ssed away the 100 million dollars he got for selling the mineral rights obtained from AngoPlats. And that is public fact.

      TshilidziPhuravhathu - 2012-09-07 13:15

      No I have a better idea, lets give them the cash on condition when he goes back home he takes everyone whose from there back home with him...

      mo.matt.14 - 2012-09-07 13:49

      Yes, aren't we already supporting half of his population, as his poor people were forced to come here for a better life? We'll lend him the money if he steps down.

  • crracker.crackerr - 2012-09-06 22:52

    Noted! But yet some want us to apply the same the policies here. We here in SA will have nowhere to flee to. At least the Zims could cross the border southwards. Time to arrest Julius Malema for sedition, sabotage, instigation of all, and of course hight treason. His record speaks for itself. He is being instrumental in creating the same miserabel conditions as Mugabe and company. BUT, and this is the point for consideration, if leaders cause such misery as Mugabe and company has that other nations/countries must bear the burden to keep their citizens alive and in good health/existence, why doesn't international law allow for that country and its leaders to be held (financially at least) responsible? Why must the SA taxpayer be the victim? Hopefully some activists will take up a worthwhile course so we can get clarity. Should be worth it.

  • nicholas.graan - 2012-09-06 22:53

    Stealing from Peter to pay Paul ..

  • kobus.oelofse.3 - 2012-09-06 22:54

    and mugabe is africas greatest man .... who needs to borrow $400m ..... plus he organizes killings of wild animals ....

  • Stefan le Roux - 2012-09-06 23:01

    the sad thing is, SA will still do it! it doesn't matter how much that capital is needed in SA, it will still be given to Bob, and we will never see it again.....except some minister and JZ who will benefit from it! back to the cannibals pot we go!!

      malcolm.macleod.562 - 2012-09-07 00:28

      You PJP are no better than those that run this country.

      juannepierre - 2012-09-07 05:22

      @PJP, isn't acting retarded exhausting?

      savage10000 - 2012-09-07 05:46

      @PJP your stupid racist comments are what prevent like minded blacks from joining whites in a united front to effect political change in our country. Government will NEVER be run by whites again! So embrace the fact that blacks will run the country and unite with all races who believe in fairness and justice to move this country to a better political outcome.

      stephen.reeves.908 - 2012-09-07 08:54

      PJP, you are a dimwit of epic proportion. @ Savage, I hear your sentiment, but pray for a day when Government is not even considered black or white, only South African.

      haveyou.completelylostyourmind - 2012-09-07 10:54

      PJP, you sir, are a dumb@ss of the highest order. Go live somewhere else then and stop bothering us.

  • Stefan le Roux - 2012-09-06 23:05

    Thandi? are you blind? its already messed up. What if I may asks have you done to stop it? (as you said you wont allow the deterioration) You cant stop this. their greed and selfish ways have brought us here, and we are on our way to our knees.

      cindy.dunn.9 - 2012-09-06 23:56

      South africans unite.... Stand strong as a country we have kids to take care of and we have take care of our elders ..... Stand firm take a stand now as brothers,sisters,mothers,fathers,children of this country stuff color we all want the same thing. Stand up and rise as one against this government that throws their own away

      thandiwe.ngema.71 - 2012-09-07 00:02

      I have started a company and employed staff - what have you done? I have changed who I vote for and converted many of my friends and family..

      juannepierre - 2012-09-07 05:24

      @Stefan, maybe it's messed up for you... But theres a large portion of this country that's not white and Afrikaans.

  • keith.ngobeni - 2012-09-06 23:09

    Yet there are still some morons,idiots who are still praising this wrinkle old dictator, piss off Robert mugarbage south Africa has its own people to look after, we are already taking care of 4million Zimbabweans who are currently residing in our shores, instead of demanding more you should say thank you to us for the shelter,food,jobs,housing,health,schools and visas we provided to your people Bob.

      cindy.dunn.9 - 2012-09-06 23:54

      South africans unite.... Stand strong as a country we have kids to take care of and we have take care of our elders ..... Stand firm take a stand now as brothers,sisters,mothers,fathers,children of this country stuff color we all want the same thing. Stand up and rise as one against this goverment that throws their own away

  • farmfreund - 2012-09-06 23:12

    the funny thing is shoprite can borrow them 400 mil, Mugabe must feel stupid to think about it, hahaha

      millionwatts1 - 2012-09-06 23:18

      You mean LEND then.

      stephen.reeves.908 - 2012-09-07 08:56

      You mean THEM

  • johann.oosthuizen.980 - 2012-09-06 23:12

    Clear that the "southern African country's economy is recovering under a coalition government". Apartheid = seperateness. Afrikaner, Zulu, Xhosa, Swazi, Sotho, etc. each governing themselves in their own territory. Conservatism - to conserve. Your religion, language, culture, values, customs.

      cindy.dunn.9 - 2012-09-06 23:55

      South africans unite.... Stand strong as a country we have kids to take care of and we have take care of our elders ..... Stand firm take a stand now as brothers,sisters,mothers,fathers,children of this country stuff color we all want the same thing. Stand up and rise as one against this goverment that throws their own away

  • millionwatts1 - 2012-09-06 23:16

    This Zim MDC minister of finance just throws figures around.

  • madulla.nkosi - 2012-09-06 23:17

    So Tendai will come begging, when it should be Mugabe himself who should have come here with cap in hand. And let's be frank here, this is not a loan but a 'non repayable loan' or free handout to be exact. And, a large chunk of this will go towards Mugabe's annual jaunt to the East and to fund Grace's 'shop by the planeload' spree. Mugabe has no respect for money and is oblivious to the fact that he bankrupted Zimbabwe. He is now shamelessly passing around the begging bowl, trawling for sponsors to subsidize his lavish lifestyle. .

      william.nigh.5 - 2012-09-07 07:39

      Is this African culture? It seems all the leaders across the continent behave the same way...why? Even here in SA, our King JZ is buying R2 billion aeroplanes for himself. Why is this allowed? Why is this problem of dictators starving their people across Africa? It reminds me of Peter Tosh's song "Vampire" go listen on YouTube...that's what these 'people' are.

  • motleleng - 2012-09-06 23:18

    Go to hell Bob, we've got our own problems to deal with, 1: Fight corruption 2: Education 3: Service delivery 4: Fight corruption, please not now sir, maybe in the next life..

  • glen.e.huysamer - 2012-09-06 23:22

    Sh*t if South Africa gets involved with this 'gemors' for anything more than a dime, I would say to LONMIN miners, ask for R30 000.00 increase, subsidized by the government.... strike all you want, this Government is not only stealing our countries money, they are now giving it away, (I wonder for how much backhands) Billions to the World Bank, (you have to know that the world is in serious financial cr*p when the world bank turns to Africa for a 'Loan'.... Cuba (obviously some politicians are getting huge kick back,.... and I am sure that most South Africans are not even aware of this 40 plus billion rand, 'passella' gift Cuba is getting from the ANC government of South Africa) To Swaziland's royal 'poophall' another odd billion or so, Now that idiot dictator Mugabe, whose wife has bought to many shoes, on Zimbawe's credit card want's to 'lend' R400million from the South African TAX payer, We already employ or provide a living means for half their nation who have sought refuge here in South Africa. Now we must pay their governments salaries while South African's are 50% out of work. Sell South Africa the trans-frontier game reserve, or something don't just ask for handouts, Mugabe, the great Mugabe begging for money, like a tramp on the street corner so he can pay for his wife's to go shopping in Dubai. This is how Zuma will take this country as well this is how the ANC will take SOuth Africa as well down the beggars road the mighty spear become beggar.

      al.pal.106 - 2012-09-07 06:56

      @Glen small correction to your posting: They want +/- 840m, not 400m you mentioned

  • wesley.bischoff - 2012-09-06 23:29

    They better not f***ing give Zim a single cent!!! Not when R30bn is "lost" every year and they constantly blame their failures on lack of funds. Let Mugabe rot in his syphilis.... If only, it's only ever the people that suffer.

  • impi.tokoloshe - 2012-09-06 23:37

    Hang on, let's not give or loan them the money. We buy some of their land to the value of that amount. Maybe the 10% of Zimbabwe that borders on our northern land with them. And then we can give it to the people in SA that want to claim farms.

      cindy.dunn.9 - 2012-09-06 23:43

      That is very clever thinking impi. Well done how can I assist to get this way of thinking into a plan of action. I think of all the drivel I've heard on news24. I really am impressed by what you have put forward

      keith.ngobeni - 2012-09-07 00:31

      @impi these people who are crying for farms if they can manage to get them the farms are going to be in a sorry state like many farms taken by Mugabe in Zimbabwe, they think farming it's a quick way of getting rich forgetting the hard work,commitment and dedication needed to be a farmer or running a farm. I do like your suggestion though because it was going to expose our so called farm wannabes incompetence.

      jacques.stander - 2012-09-07 07:06

      Bloody good idea!!!

      gail.welman - 2012-09-07 07:20

      Impi - I love the way you think. Nothing comes for free.

      eduard.marais.5 - 2012-09-07 07:22

      Impi for president

  • mark.a.fysh - 2012-09-06 23:39

    Yeah sure, Zimbabwe. You took the farms, now pay the price. Voetsek!

  • mkhindana.peter - 2012-09-06 23:55

    Well in that note.Expect more and more and more and more and more and more Zimbabweans to flee to S.A

      juan.prinsloo.750 - 2012-09-07 02:06

      @PJP do you know the crap we have to go through to get a firearm in this country, legally at least? This is not Texas unfortunatley

  • tommo.too - 2012-09-07 00:18

    Um... I wonder the horrible filthy imperial colonial west wont help you Bob?

  • sabelo.mcondobi - 2012-09-07 00:22

    I do not know if this country is able to give money to any other country at this juncture. I hope President Mugabe can see the impact of a radical land reform programme. Because these are the outcomes of such programme.

  • malcolm.macleod.562 - 2012-09-07 01:03

    Only if Mugabe steps down.

  • rontheogre - 2012-09-07 01:04

    Now the greatest man in Africa needs to bum money from next door just like the irritating spendthrift neighbour that always has money for booze, a nice car and flashy clothes but his wife and children have to eat out of your kitchen! If Zuma agrees to this it will be the ideal time for the tax paying public in SA to take a few days off work to go and view the gardens at parliament and take part in a demonstration while we are there. While we are at it we can hand over our demands, including the government not wasting or stealing our money. We will have to threaten to withhold our taxes as we can't threaten to make SA "ungovernable". It already is so by default through a corrupt government.

  • willem.v.hoven - 2012-09-07 01:16

    BoB, as the greatest African (dead or alive) take your begging bowl elsewhere

  • mary.kircher - 2012-09-07 01:19

    I am so impressed ... for once on these forums, we stand, UNITED as South Africans ! Just imagine what we could be capable of if it were always so !

  • beryl.knipe - 2012-09-07 01:33

    I think I'm just having a nightmare! Has this cretin got the audacity or what?

  • bonge.mpofu - 2012-09-07 01:57

    aha, mugabe must ask money from his nationalisation. oops ask from malema. stupid fool,when he too away all those farms he should have seen it coming

      juan.prinsloo.750 - 2012-09-07 02:10

      Yip investors, who needs them?

  • Chaapo - 2012-09-07 02:20

    You will never get it back. Ask Malema, and indeed his Godfather, Mugabe, how the nationalization that Malema so admires is working for Zimbabwe.

  • douglas.reid.921 - 2012-09-07 02:32

    We gave billions to Cuba, we don't even speak their language. Communism failed. Mugabe failed. Why is this our problem? We have vast numbers in squatter camps and beggars at every traffic light. We already have half the Zim population here, virtually all the whites. This is a rich country made poor by corruption and mismanagement. To some poor ignorant people Mugabe is a hero. When we have killed all the boers and have no farming who are we going to turn to? When the arrogant uneducated fools are in control this is what you get. Zim hates the doners but still wants their money to support their failed ideology. I must pay tax for Mugabe, Castro and the Swazi and Zulu kings. Someone please explain to me why???

  • sally.mogashoa.3 - 2012-09-07 03:04

    mugabe is the one who caused all this problems he must make a plan. He is a hearless stubborn old man

  • sally.mogashoa.3 - 2012-09-07 03:18

    Instead of giving mugabe some money we better keep it and use it to bury our people who are been killed by his people daily in our country. Leave us alone brother Bob u saw it coming .

  • akaRags - 2012-09-07 04:06

    By turning to SA, (and China) those in charge of Zim are admitting to failure. How about the Marange diamond fields? Where's all the money from there going? Into Chinese hands? What about the personal bank accounts of all the politicians who have looted that country's coffers? But how different is SA, when the Zulu king wants millions for yet another palace, to maintain another wife. Look at Zuma, one of the highest paid Presidents in the world - and Pres of what, a country with one of the highest crime rates in the world, where people are living in Shacks? It is all pathetic. Sooner or later the chickens will come home to roost......

  • themba.thwala.98 - 2012-09-07 05:25

    The last time I checked, Zimbabwe was also not even paying for the electricity supply SA provides on credit because shutting Zim down will cause an even bigger flood of so~called refugees to flee into SA. That old tyrant also gave Juju~boy 11 cows as a bribe when he visited Zimbabwe to shut him up as Juju and COSATU were very critical of the murderous dictatorship before. Plus he reportedly has million of dollars stashed away in foreign banks. One of his Ministers is reportedly building a house worth R200m in SA. How difficult will it be for the ageing tyrant to call up the money from just one of his bank account? The time is also overdue for the Zimbos to go and remove that tyrant with force which they are currently using to murder their SA hosts and bomb our ATMs. Zuma must know that charity begins at home, not as in Zumaville or his numerous wives, girlfriends, children, nephews and the Zimbabwean tyranical government

  • Gerda Malherbe - 2012-09-07 05:26

    No, Bob, we're sorry. Everything colonial was spawned by the devil, so the billion odd credit facility has gone to where you sent your white farmers, SOUTH! F@ck you, you moron, and take your criminal and murdering brethren with you to hell

  • larry.piggott1 - 2012-09-07 05:26

    I wonder if Malema knows what caused this?

  • Dawn Campbell Gibson - 2012-09-07 05:34

    This is exactly where SA is headed if we do not vote wisely.

  • koos.vandermerwe.338 - 2012-09-07 05:46

    But they have money to by nearly R3mil worth of weapons from South Africa.

  • kobus.jacobs.180 - 2012-09-07 05:56

    WATCH THIS SPACE!!! OUR USELESS LAME GOVERNMENT WILL HELP THIS MAD IDIOT !! WHY SHOULDN'T THEY? IT IS AFTER ALL NOT THEIR MONEY. AS IT IS, WE SELL ELECTRICITY TO THEM WITHOUT BEING PAID FOR UT. `WHERE WOULD THEY GET THE MONEY TO DO SO???

  • thabelorale - 2012-09-07 05:57

    Strange !! Bob hates the white boy but now he turns to borrow their money! The money in SA coffers is from the hard work of the white boy some of them those chased from Zim, not black folks here. \r\n\r\nMalema should take the heed as well.

  • vivian.harris.73 - 2012-09-07 06:42

    Get rid of Mugabe and his party then maybe investers will flock to Zim. Keep. Voting for Bob and you will always be F*****

  • don.richards.1044 - 2012-09-07 06:48

    No no no no no!!!!!!!!!!!! As RM said Blair can have his Britain and RM will have his Zimbabwe....so go and have your Zimbabwe that you created and have it without SA’s money

  • russell.l.tait - 2012-09-07 06:49

    The $400Million can be found and retrieved from his accounts in Singapore....

  • jacques.stander - 2012-09-07 07:01

    Look in Mugabe's(& army generals) bank accounts !!!

  • barend.steyn.9 - 2012-09-07 07:08

    Mugabe stuffed up Zimbabwe and the people of Zimbabwe haveto get rid of him and Zanu PF. The story of Africa.

  • vmeiring1 - 2012-09-07 07:13

    Angola and South Africa can't even help themselves

  • charles.gregory.7906 - 2012-09-07 07:14

    Why is our black african brothers and sisters not comenting on this story?

  • gail.welman - 2012-09-07 07:16

    Oh I am pretty sure that our clueless government will lend to their best friend next door. Never mind that South Africa is inundated with millions of foreign people who strolled into our country and have added to our pool of poverty. One would think that our clueless government is already enought contributing.

  • eduard.marais.5 - 2012-09-07 07:21

    this is a joke. If you still vote ANC you are a brainless turd

  • gail.welman - 2012-09-07 07:21

    I wonder if anyone in government ever reads these comments.

  • wayne.faulds - 2012-09-07 07:32

    Theres is no plausible reason why my tax money should be paid to bail out Bob and co. who have systematically destroyed their country and looted their own donor and tax payers money.

  • chris.holloway.5 - 2012-09-07 07:34

    Please help Zim, soon we are going to need THEIR help.

      themba.thwala.98 - 2012-09-07 07:38

      Bobby and his friends will just stash it away in their bank accounts, buy more mansions in the East and use some of it to go shopping in China with their wives. No!