Finance ministers to discuss Zimbabwe's economic bailout

South African President, Kgalema Motlanthe told reporters in Cape Town on Saturday, 21 February following their meeting with the Zimbabwean delegation, that talks are expected to continue next week between the two countries' ministers on an emergency plan.

He was optimistic that by the end of next week there will be clarity on how South Africa could respond to Zimbabwe's request.

Zimbabwe's economic bailout is estimated to carry a cost of around US$ 5 billion in the short term and the delegation, led by newly appointed Prime Minister Morgan Tsvagirai, was hoping for at least $1 billion from its neighbour.

As the new regime in Zimbabwe faces a huge mountain of challenges brought about by years of administrative neglect and policies shooting from the hip, the government will also be looking at strengthening laws as a way for re-attracting foreign direct investment in the battered Southern African state.

Tsvangirai told reporters in Cape Town that his country needed urgent short-term interventions to kick start the economy.

Zimbabwe still faces a number of targeted sanctions from the western countries, who have expressed a desire to wait and watch as the functionality of the newly formed unity government unfolds.

Article published courtesy of BuaNews