Sanctions Affect Loan Re-Payments

Speaking during a courtesy call by visiting Brazilian Secretary for Africa and the Middle East in the Ministry of External Relations, Ambassador Carlos Duarte in Harare, Ambassador Shava said Zimbabwe was grateful for the 15-year loan facility in 2015 to support at least 22 000 small-scale farmers with equipment, including tractors, fertiliser spreaders and irrigation kits.

Senior Reporter

ILLEGAL sanctions imposed on Zimbabwe by the United States of America have resulted in complications with repayments for a US$98 million Brazilian loan facility under the More Food Africa programme, Foreign Affairs and International Trade Minister Dr Frederick Shava said yesterday. Speaking during a courtesy call by visiting Brazilian Secretary for Africa and the Middle East in the Ministry of External Relations, Ambassador Carlos Duarte in Harare, Ambassador Shava said Zimbabwe was grateful for the 15-year loan facility in 2015 to support at least 22 000 small-scale farmers with equipment, including tractors, fertiliser spreaders and irrigation kits. “The Government of Zimbabwe and its people are sincerely grateful to Brazil for the expression of support, this mutual support. I regret, however, that there have been challenges in repayments for the loan and interest for the equipment supplied to Zimbabwe,” Dr Shava said. “This was and is due to complications associated with the sanctions imposed on Zimbabwe by the US and that tended to slow down or complicate our repayment programme. “An attempt by our commercial bank, the AFC Commercial Bank, to remit funds in January 2023 was not successful because the funds were returned by the United States immediately to the intermediary bank, citing their international compliance policy, that is, compliance with the sanctions regime. ReadMore