HARARE – Zimbabwe’s cash-strapped government has repaid US$650 000 owed to the African Development Bank (AfDB) ahead of the bank’s annual general meeting in Maputo, Mozambique.

In statement, the AfDB said Zimbabwe had been in arrears and made the repayment last month despite the deepening foreign exchange shortages facing the embattled southern African nation.

"Zimbabwe has, in all, paid 650 000 dollars to the bank group despite numerous economic challenges currently facing the country, both globally and locally," the bank said on the eve of its annual meeting in Maputo.

Zimbabwe made a 500 000-dollar repayment to AfDB and an additional 150 000 dollars to the bank's subsidiary lender, African Development Fund, the statement said, although the bank did not disclose how much Harare owed.

The southern African country is facing unprecedented political and economic meltdown – blamed on wrong policies and repression by veteran President Robert Mugabe –marked by the world's highest inflation rate of 165 000 percent and shortages of basic commodities. 

"The challenges have contributed to the under performance of the agricultural, mining and tourism sectors," the statement said.

There was no immediate reaction from Zimbabwe Finance Minister Samuel Mumbengegwi or Reserve Bank of Zimbabwe governor Gideon Gono.

The African Development Bank holds its meeting from Wednesday until Thursday. – ZimOnline