Manuel spells out Zimbabwe’s debt to South Africa

Zimbabwean parastatals owe at least R179 million (US $22 million) to their South African counterparts, with some having run into arrears, Finance Minister Trevor Manuel told parliament on Thursday. Manuel said the government had granted no direct loans to its neighbour. The government has, however, provided export credit reinsurance on exports to the Zimbabwean iron and steel parastatal Zisco, through the department of trade and industry’s credit reinsurance scheme. The total outstanding on this contract was R30-million (US $3 million), with R3,7-million (US $45,000) in arrears. The South African communication parastatal, Telkom has extended a R64-million (US $7.9 million) credit facility. Eskom, the energy parastatal, has also provided a credit line to the Zimbabwe Electricity Supply Authority. The outstanding balance on this account had fallen and arrears were covered by deposits under a debt repayment agreement, Manuel said. Manuel also gave details of an overdraft facility given to the Reserve Bank of Zimbabwe by the South African Reserve Bank, but did not disclose the actual amount.