Zimbabwe is preparing to open talks with China for a 2 billion US dollar (12 millliarder DKR) loan, in a bid to boost its crumbling economy. Much of the money would be used to fight Zimbabwes soaring inflation, the state-run Herald newspaper reported according to BBC Online Thursday.
China has been looking to extend its influence in Africa and recently hosted a summit of African leaders. Zimbabwe has been struggling to cope with economic collapse brought about, critics say, by the policies of President Robert Mugabe.
The southern African country – previously one of the continent’s most developed economies – has seen inflation leap above 1.000 per cent, while food and fuel shortages are rife.
The International Monetary Fund warned earlier this week that Zimbabwes dire economic situation could get worse. If agreed, the Chinese loan would be the biggest foreign loan secured by President Mugabes government.
