ZIMBABWE is seeking R3.25 billion in an overdraft and credit facility from South Africa, Finance Minister Tendai Biti said on Wednesday, as the country battles to reverse the effects of a decade-long political and economic crisis.
A power-sharing government set up last year by bitter rivals President Robert Mugabe, Prime Minister Morgan Tsvangirai and Deputy Prime Minister Arthur Mutambara has stabilised an economy ravaged by hyperinflation, which peaked at 500 billion percent in December 2008.
But the government says it needs at least US$10 billion for reconstruction.
Biti told business executives in Harare that the government was looking to negotiate with South Africa's government for financial assistance after agreeing terms for a US$70 million credit line with Botswana.
The government has so far failed to attract significant funds from Western donors, who are demanding more reforms before providing aid to the unity government.
"In South Africa ... there are two facilities that we are negotiating; one is a line of credit of R500 million, one is a revival of an old overdraft facility of R2.75 billion," Biti said, adding that he would soon visit the country for discussions.
"We are also talking to private capital, the banks, and the general understanding is that now that the South African and Zimbabwean BIPPA (bilateral investment promotion and protection agreement) has been ratified by the South African parliament there should be movement and traction on that."
The agreement, which was signed last November, protects investments from expropriation and provides the opportunity for aggrieved investors to seek redress in international courts.
Biti said the government was still struggling to raise revenues in the recovering economy, collecting an average US$140 million a month, the bulk of which went on wages for public workers.