Botswana Denies Zimbabwe Loan Report

RAPAPORT... The president of Botswana has repudiated claims that thecountry planned to loan Zimbabwe $600 million to support its diamond industry and private sector. Last week, Zimbabwe's media quoted its secretary of foreign affairs and international trade as saying Botswana hadoffered the country $500 million to fund facilities for its diamond industry,and another $100 million for local private firms. "I want to clarify these reports that we are giving Zimbabwehundreds of millions in loans," Botswana President Mokgweetsi Masisi toldreporters in Gaborone Friday, according to Reuters. "That is totally untrue. Weare not giving them a single loan." Although the Zimbabwean authorities have been requestingfinancing from Botswana for several years, Botswana has refused to provide it until Zimbabwemeets specific requirements, including becoming compliant with the KimberleyProcess (KP), a Bank of Botswana spokesperson told Rapaport News Thursday. While Zimbabwe recently reopened its diamond sector toforeign investment - inviting companies such as Russian miner Alrosa and China'sAnjin Investments to mine at its Marange fields, among other areas - Botswana will not be participating. The country is concerned that anypartnership with Zimbabwe would jeopardize its status in the KP, thespokesperson added.Image: Botswana President Mokgweetsi Masisi at the Illegal Wildlife Trade Conference in London. (MarginalCost)