admin
Herald Reporter
The Second Republic’s efforts to make sure the country resolves its official debt and clears its arrears with international creditors, including the African Development Bank is a step in the right direction and could potentially improve the investment climate in the country, European Union’s top diplomat to Zimbabwe, Ambassador Jobst von Kirchmann has said.
Since late 2022, the Government of Zimbabwe has been engaged in a concerted process to resolve its official debt and clear its arrears with international creditors, including the African Development Bank.
President Mnangagwa appointed Dr Akinumwi Adesina as the country’s arrears clearance and debt resolution champion, while former Mozambican President Joachim Chissano is the high-level facilitator.
This year, the Treasury has set aside US$55 million to compensate white former farm owners whose land was acquired under the Fast-Track Land Reform Programme for resettlement.
Speaking at the Europe Day celebrations at his residence in Harare, Amb Kirchmann said President Mnangagwa’s move shows reforms on the economic and good governance side.
“… if I can mention one process, which in my view could potentially improve the investment climate, it’s the areas clearance and debt resolution process, which has been put in motion by President Mnangagwa, with the facilitator, former President of Mozambique, Chissano, and the president of the AFDB.
“Why? Because it’s a process where the Government, unilaterally, in a Government-driven way, as a sovereign country, has proposed reforms on the economic side, on the good governance side, and on the land issues.
“And that, if you look at it, because it’s all public, what the Government proposed could potentially and massively improve investment climate, because it includes, ultimately, access to sovereign lending,” he said.
He said the sovereign lending allows Zimbabwe to leapfrog in its quest to achieve its Vision 2030 of making the country an upper middle-income society.
“Zimbabwe currently does not have access to sovereign lending. That sovereign lending could help to make Vision 2030 a reality because you can build infrastructure.
“So we, I think, collectively are very committed to this process, and we hope that the Government, what they have put in motion, will be able to do it,” he said, adding that the EU stands ready to support the initiative.
Compensation for the farmers is a central pillar of the debt and arrears negotiations. About US$35 million will go towards compensating former owners of farms covered under the Global Compensation Deed, signed between Government and white former commercial farmers in 2020.
The rest will be directed towards the farms protected by Bilateral Investment Promotion and Protection Agreements (BIPPAs) that were affected by the land reform programme.
The Government has committed to paying the farmers US$3,5 billion under the Global Compensation Deed.
Online Reporter