Mbeki Hints at Cash for Crisis-torn Zimbabwe

The South African president, Thabo Mbeki, gave his clearest indication yesterday that his government will give financial assistance to Zimbabwe.

"We engage them because we don't want Zimbabwe collapsing next door. South Africa would inherit all the consequences of Zimbabwe collapsing," he said. Mr Mbeki said his finance minister and central bank governor were negotiating with top Zimbabwean officials to find ways to help the country pay for urgently needed imports of food, fuel and electricity. Zimbabwe needs $1bn (£574m) to stave off economic implosion, say Harare economists.

The announcement came as Zimbabwe's president, Robert Mugabe, travelled to China to request financial assistance from Beijing.

Speaking after a three-day cabinet meeting yesterday, Mr Mbeki said it was up to Zimbabwe to restore economic and political stability, and made his strongest comments yet on Zimbabwe's economic crisis. He has come under growing criticism, domestically and internationally, for his silence on the issue.

Mr Mbeki confirmed that his officials were considering ways to pay off the $300m (£172m) that the Mugabe government owes to the International Monetary Fund.

Zimbabwe risks becoming the second country ever to be expelled from the IMF later this month.

Mr Mbeki said the termination of Zimbabwe's membership would be "counterproductive" because it would create "a bigger problem" that would "require bigger resources to solve".

Mr Mbeki did not outline the political and economic reforms that his officials are demanding of Mr Mugabe except to say that any agreement reached "has to be an inclusive one taking on the broad interests and concerns of all Zimbabweans".

He said he would discuss the economic aid with Zimbabwe's opposition party, the Movement for Democratic Change. Mr Mbeki also avoided criticising Mr Mugabe's housing demolitions, two days after a UN report found that the forced eviction of some 700,000 Zimbabweans violated international as well as domestic laws.

The South African leader said his government would be looking for ways to assist the uprooted Zimbabweans. Mr Mugabe arrived in China on Saturday for a six-day visit. He flew on an Air Zimbabwe jet, although most other flights by the state-owned airline were cancelled last week due to fuel shortages.

In addition to financial aid, Mr Mugabe is expected to ask Chinese leaders to block any action by the UN security council over his housing demolitions. In return, China is expected to require access to Zimbabwe's platinum deposits, the second largest in the world.

Mr Mugabe's trip highlights his growing dependence on Beijing. In the past few months the Zimbabwean government has imported Chinese jet fighters, passenger aircraft and buses.