South Africa would provide loans and financial assistance to help Zimbabwe get back on its feet, President Cyril Ramaphosa said at a meeting of the Bi-National Commission (BNC) in Harare yesterday.
Ramaphosa said the SA Reserve Bank was engaged in discussions to help the Reserve Bank of Zimbabwe to secure as much as $7million (R99.8m).
Officials told Business Report this was the only “wriggle room” that South Africa could afford. They said the private sector was keen to invest in Zimbabwe but was concerned about policy uncertainties, despite reforms.
South Africa and Zimbabwe conduct their relations through the BNC, which was established in 2015.
South African companies such as Anglo Platinum, Standard Bank, Sanlam and Old Mutual that operate in Zimbabwe rely on their parent units for financial support.
A joint communiqué released after the meeting said some South African financiers required guarantees to advance funds to Zimbabwean banks.
Zimbabwean President Emmerson Mnangagwa said his country would assure South African investors that their investments were secure.