HARARE The African Development Bank (ADB) said this week that it would strengthen its presence in Zimbabwe to adequately respond to the challenges faced by the southern African country and hopes to have a fully fledged field office in Harare by mid-2011.
The Tunis-based financial institution said field presence in Zimbabwe would enable the bank to be part of the collective donors dialogue in the country and to provide advice and support to Harares coalition government.
A strengthened field office in Zimbabwe will greatly enhance the banks capacity to play a lead role in the collective dialogue in Zimbabwe and to provide advice and support to the Inclusive Government to ensure that Zimbabwe continues on the path of reforms and reengagement with the international community, the banks management said in a proposal submitted to its board of directors.
It would also allow the institution to administer the Zimbabwe Multi-Donor Trust Fund in response to a request by the Fishmongers Group of donors in May for the Bank to take over the management of the fund from the World Bank.
The Fishmongers Group is an informal Harare-based grouping of Western donors that helps to coordinate existing aid efforts in Zimbabwe and is also focused on preparations for reconstruction.
ADB has since March 2009 had temporary presence in the country through an extended mission that has operated in Harare where it has been advising the government on reengagement with the international community and economic recovery.
The process of identifying a temporary location is underway and it is expected that Zimbabwe field office would be in temporary offices until 30 June 2011.
The AfDB is one of the multilateral financial institutions owed more than US$4 billion by Zimbabwe in the form of arrears on loans given in the past.
Together with the International Monetary Fund and the World Bank, ADB has told Zimbabwes 20-month-old coalition government to first its arrears with the organisations before they can entertain Harares request for budgetary assistance.
The southern African country, still smarting from nearly a decade of international isolation and poor policies, desperately requires international support for reconstruction.
Economic analysts believe that negotiating for debt restructuring or forgiveness is the only viable option available to Finance Minister Tendai Biti and his team as they try to reengage the international community for economic aid.
Whether Biti would manage to win debt relief or forgiveness from the lending institutions however ultimately depends on developments on the political front.
Western nations and lending institutions have cast a jaundiced eye on the unity government formed in February 2009 in which President Robert Mugabes Zanu (PF) has maintained a firm grip on power while allowing cosmetic political reforms.
Post published in: Economy