China will cancel about $40 million worth of Zimbabwe's debt due to mature this year and Harare hopes to facilitate use of the yuan currency in its economy as bilateral trade increases, the Southern African country's finance minister said on Monday.
China has become the largest investor in Zimbabwe, which has been shunned by the West over its human rights record and is struggling to emerge from a deep 1999-2008 recession that forced the government to ditch its own currency in 2009.
Finance Minister Patrick Chinamasa said China and Zimbabwe were negotiating the final amount of debt to be cancelled.
"They (China) said they are cancelling our debts that are maturing this year. Right now, preliminarily, we are coming up with a figure of $40 million," Chinamasa said in a statement.