- Published on 13 July 2017
Zimbabwe is starved of access to foreign finance and only has three international banks availing credit to the country due to isolation and sanctions that Western countries imposed.
Most of the economic challenges the country is facing which include struggling to service debts and stunted economic growth are linked to the embargo. Reserve Bank of Zimbabwe Governor, Dr John Mangudya said the isolation had seen the country struggling to service its huge debts as well as lose support of 50 corresponding international banks in the past decade. The corresponding banks were international financial institutions that provided services such as wire transfers, business transactions, accepted deposits and gathered documents on behalf of local banks. Dr Mangudya said challenges such as cash shortages and unemployment were symptoms of an economy that was not properly functioning. (Herald)