The African Development Bank said on Sunday Zimbabwe needs to do more work before the country’s full scale reengagement with the global community, a sign that foreign funding to rebuild its shattered economy will be tough to secure.
ADB President Donald Kaberuka told reporters the bank was working together with the International Monetary Fund and the World Bank to ensure Zimbabwe normalized its relations with the international community.
“There are many things to be done for full scale reengagement,” said Kaberuka, side stepping the issue of whether the ADB would step in with some form of funding.
Zimbabwe’s new unity government has asked for international funding to rehabilitate an economy, once described by the World Bank as the fastest shrinking outside a war zone. Over 90 percent of the country’s working population is unemployed and the government is broke.
Despite the formation of the new government early this year by political rivals Robert Mugabe and Morgan Tsvangirai, donors remain reluctant to lend money. More worrying, farm invasions, at the root of the collapse of the once vibrant economy, have continued.
Policy differences with President Mugabe’s government, including the often violent seizure of white-owned farms for the resettlement of landless blacks, have left it without international funding. The land seizures started in 2000.
The IMF, which suspended Zimbabwe’s voting rights in 2003, said on Friday the country had to clear its arrears with the fund, now amounting to $130 million, before it could get any money. The World Bank, which is owed over $600 million, has maintained a similar stance.
There had been speculation that either the ADB or the Southern African Development Community could arrange a bridge loan to pay off Zimbabwe’s arrears with the IMF. However, Kaberuka’s remarks appeared to pour cold water on suggestions that a rescue package was in the works.
“I don’t think the strategy of making Zimbabwe dependent on foreign aid is the right one. What we need to do with Zimbabwe is to work with them to establish business confidence, rehabilitate their infrastructure and ensure that skilled Zimbabweans come back to their country,” he said.
“I very much welcome the political arrangement in Zimbabwe. It may be imperfect but it represents a chance for that country’s recovery and return to its previous prosperous status.”
The US has indicated it is not yet ready to give money to Zimbabwe.
(Source)