Zimbabwe Reserve Bank Governor John Mangudya has confirmed that the government borrowed $985 million from African banks to purchase fuel and other critical imports with current reserves covering imports for just four weeks, underscoring the severity of dollar shortages.

Mangudya said the central bank borrowed from the African Export and Import Bank, Eastern and Southern African Trade and Development Bank, among others, who will be paid back from future gold earnings.

The loans have a tenure of between three and five years and attract an interest of up to 6 percent above the Libor rate.