Govt Offers Mineral Deposits As Security To Get $1 Billion Capital

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya is reported to have offered Australia the country’s mineral resources as security in order to get a long-term capital of US$1 billion. The money is supposed to be used to turn around the country’s economy, which is expected to go up by 0.9 percent according to the World Bank. This figure is lower than the government’s optimistic projection of 4.5 percent. In a meeting with visiting Australian assistant secretary for Africa branch Gita Kamath, Mangudya also reassured the Australians that they would be able to repatriate their money.

Sources who spoke to The Zimbabwe Independent said:

The governor said the RBZ is currently hamstrung and is looking for fresh capital. He said the apex bank would use the country’s mineral resources, particularly gold and platinum, as some mortgage in exchange for long-term capital,

The amount they are seeking is based on average gold production which according to official figures should be just over US$1 billion.

Mangudya confirmed the meeting but declined to go into detail, choosing to say:

We discussed exactly what is in the Monetary Policy Statement (MPS).

More: The Independent