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."
Reuters
Post published in: News