Zimbabwe Power Firm Agrees $110 Million Afreximbank Financing Deal

A subsidiary of Zimbabwe's state-owned power company has signed a $110 million syndicated loan with continental trade finance bank Afreximbank, the bank said on Friday.

"The funds will help Zimbabwe Electricity Transmission & Distribution Company (ZETDC) to improve revenue collection through smart meters and pre-paid meters and thus pay off regional creditors' accounts," Afreximbank said in a statement.

Many electricity users in Zimbabwe are on a post-pay system and rack up large debts, which is bad for ZETDC's books and hurts its ability to supply power.

Afreximbank said it had signed financing deals worth another $78 million with three other Zimbabwean companies - the Central African Building Society, CBZ Bank and ZB Bank - at a trade fair in the South African port city of Durban.