Harare — ZIMBABWE has taken its begging bowl to Namibia, continuing its increasingly desperate bid to rustle up urgent financial aid from its dwindling band of allies, The Financial Gazette can reveal.

Stanislaus Chigwedere, Zimbabwe's ambassador to Namibia, said on Tuesday the country had approached Namibia as part of its current drive to secure financial aid from what he called "good friends".

"Discussions are in progress with our good friends for financial assistance," Chigwedere said this week. He, however, gave no further details on the talks.

Namibia becomes the second African country that Zimbabwe has approached for aid. However, Zimbabwe is unlikely to find significant financial aid there. Namibia is forecast to see sluggish economic growth this year on a sharp decline in its fish industry, the mainstay of its economy.

Zimbabwe has in recent weeks stepped up efforts to raise the vital financial support it needs for essential imports, approaching China, Iran, India and Malaysia for aid.

South African President Thabo Mbeki told reporters on Sunday after a three-day meeting of his cabinet that it was in the best interests of South Africa to stave off economic and political collapse in its northern neighbour.

"We engage them because we don't want Zimbabwe collapsing next door. South Africa would inherit all the consequences of Zimbabwe collapsing. Something has to happen," said Mbeki.

Mbeki added it would be "incorrect and counterproductive" for Zimbabwe to be expelled from the International Monetary Fund (IMF). South Africa might have to take over part of Zimbabwe's foreign debt, Mbeki said, but denied earlier media reports claiming South Africa had already signed an agreement to release US$1 billion to Zimbabwe.

"It is important to address those arrears so that Zimbabwe can continue to have access to the IMF," he said. "It could very well come to South Africa taking on part of Zimbabwe's debt."

Zimbabwe needs to urgently repay US$306 million to the IMF or else become the first country since the former Czechoslovakia in the 1950s to be kicked out of the institution.

Although the Zimbabwe opposition is backing South Africa's decision to extend financial assistance to the country, Mbeki is facing domestic pressure from the opposition Democratic Alliance (DA) not to bail out Zimbabwe.

Sapa news agency quotes DA leader Tony Leon, who has launched what he calls the "Stop Mugabe Loan" campaign, as describing Zimbabwe's request for financial assistance as "outrageous and unprecedented".