Skip to content

Zimbabwe Abandons Bank Lending Ban That Stalled Economy

  • Government had said measure was needed to stop currency fall
  • Industry officials said ban destroyed business confidence
Updated on

Zimbabwe lifted a 10-day ban on bank lending as critics warned that the government has shattered confidence in the already stagnant economy. 

While the ban was announced by President Emmerson Mnangagwa in a bid to halt the runaway depreciation of the Zimbabwe dollar it quickly chilled economic activity, with agri-processing companies including sugar mills saying they couldn’t advance funds to farmers to grow their crops. That led to a gradual relaxation, with the government first saying it didn’t apply to commodities and then allowing citizens with access to foreign currency to import their own goods.