South Africa has declined to help the Zimbabwean government with credit of $1.2 billion. The Zim government requested the money on 26 December 2018, but South Africa said it has budgetary constraints given their general election to be in May this year.
On December 26, finance minister Mthuli Ncube took a delegation of senior government officials including Reserve Bank of Zimbabwe governor John Mangudya and Secretary for Finance George Guvamatanga to neighbouring South Africa where he held a high level meeting with his counterpart Tito Mboweni. Also in attendance were South Africa’s National Treasury director-general Dondo Mogajane and the country’s central bank chief.
It is understood that issues that were discussed in this meeting included Zimbabwe’s currency reforms, financial aid and Zimbabwe’s Transitional Stabilisation Programme.
“This meeting came against a backdrop of fuel shortages and other critical needs. Minister Ncube appealed to the South Africans for a financial package of around $1 billion but he was told that South Africa was currently not in a position to extend that aid because it will soon hold elections,” a source said.