Botswana offers Zim $70m

Harare - Botswana on Thursday pledged a $70m credit to Harare to boost the country's ailing economy and support key industries.

"Botswana is proposing to provide some $70m in credit support for some industries," Botswana's secretary for economic planning, Taufila Nyamadzabo, said after meeting with Zimbabwean Finance Minister Tendai Biti.

"All that is left is to tie up the agreement," said Nyamadzabo.

The money would shore up the steel, leather and manufacturing industries.

Southern African Development Community (SADC) leaders in March promised to help Zimbabwe raise $8.5bn over the next two to three years to help revitalise its ruined economy.

But Western donors announced that they will not lend money to Zimbabwe or lift sanctions against President Robert Mugabe until he proves that he is willing to reform and work with arch-rival Prime Minister Morgan Tsvangirai in the new unity government.

"We are keen to assist certain industries like steel, leather and manufacturing," Nyamadzabo told a news conference.

Biti welcomed the pledge but called on rich nations to make donations based on the size of their GDPs.

- Sapa-AFP