EU pledges 160 million Euros to Zim

Ngonidzashe Chiutsi Business Correspondent
THE European Union has said it anticipates to have committed 160 million Euros by the end of the year towards viable business projects in Zimbabwe as part of the bloc’s support to economic recovery, an official has said. The fund is part of the 234 million Euros EU pledged to Zimbabwe in February for development assistance. In an interview in Bulawayo last week, Head of the EU Delegation to Zimbabwe, Ambassador Philippe Van Damme, said the EU was availing funds to Zimbabwe earmarked to boost its economic recovery.

“By the end of the year, we will have committed €160 million and disbursement will be spread over the three to four years,” said Mr Van Damme, adding the money was part of €234 million ($270 million) that EU agreed to release to the Government for various projects.
He said Government should come up with viable projects which will enable the EU to release the money.

“The country should have sound and viable results driven projects and if it succeeds in implementing the projects in a satisfactory way, we are hoping that half-way to 2017, we may obtain additional funding from our headquarters. We will be contracting people who will implement the business projects before we start disbursing the funds.”
He said by 2020, the EU was targeting to have committed €240 million towards various projects in Zimbabwe.

Mr Van Damme said the EU was also giving other financial support to the Government to enhance its business.
“We are now working with the Ministry of Industry and Commerce on another €7,5 million trade support programme and we have also budget lines in favour of food security,” said Mr Van Damme.

Last month, the EU pledged to avail an additional €1 million to Zimbabwe for agricultural projects under the regional integration mechanism managed by the Common Market for Eastern and Southern Africa (Comesa).

The EU lifted its decade-long economic sanctions on Zimbabwe last November and immediately announced its support towards the country’s socio-economic programmes between 2015 and 2020.