Zimbabwe to sell diamonds to pay off debt: Prime Minister

Zimbabwe's Prime Minister Morgan Tsvangirai addresses a visiting German business delegation in Harare February 17, 2011.

HARARE (Reuters) - Zimbabwe's Prime Minister Morgan Tsvangirai said Tuesday the country will use revenue from diamond sales to repay part of its external debt amounting to $7.1 billion.

The southern African nation is facing diamond export controls for suspected human rights violations in mining of the precious stones.

"The government has so far sold diamonds worth $300 million, and the money will be used to service the debt and also to rehabilitate Zimbabwe's faltering industry," Tsvangirai told an investment conference in Harare.

(Reporting by Alfonce Mbizwo; Editing by Jon Herskovitz)