The President of Botswana in a recent announcement dismissed a report saying his country had provided Zimbabwe a diamond-backed loan of $600 million. He said what exactly was promised was a guaranteed $100 million as a private credit line for companies from Botswana to invest in the Zimbabwean economy.
The initial report was spurred by an announcement made by the Secretary of the Zimbabwean Ministry of Foreign Affairs. The secretary had said that Zimbabwe was to receive a loan of $500 million from Botswana to improve its diamond industry. He said the Botswana Government had also pledged to give a loan of $100 million to improve the private firms in the country.
The Botswana President said no loans were being disbursed to Zimbabwe, the only disbursement was some medical supplies and supplementary food worth $197,600. According to the President, he said they had demanded a letter of guarantee which will reciprocate the one from Botswana.
He also said his country, which is the largest producer of diamonds in the world by volume, will work with Zimbabwe to improve its diamond industry. Both countries have enjoyed great bilateral relations since the ex-Botswana President left office in 2018.