The department says South Africa does not have the money to assist the embattled country.
The National Treasury turned down Zimbabwe’s loan request of $1.2 billion, the department said, Bloomberg reports.
It was reported that Zimbabwe requested the loan in December and that the money was meant as a rescue package for the country, said Treasury spokesperson Jabulani Sikhakhane.
Sikhakhane said South Africa did not have the funds to assist Zimbabwe.
The spokesperson said the Zimbabwean government had implemented austerity measures meant to transform the performance of the economy and, outside pronouncing a number of austerity measures, had not provided a clear road map to economic recovery and prosperity.
The nation is currently experiencing strikes and foreign-exchange and fuel shortages.
Source: The Citizen