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Herald Correspondent
PRESIDENT Emmerson Mnangagwa’s efforts to make sure the country clears its arrears with international creditors is a step in the right direction and could improve the country’s investment climate, European Union top diplomat to Zimbabwe, Ambassador Jobst von Kirchmann has said.
Since 2022, the Government of Zimbabwe has been working tirelessly to clear its arrears with international creditors, including the African Development Bank (AfDB).
President Mnangagwa appointed (AfDB) president, Dr Akinwumi Dr Adesina as the country’s arrears clearance and debt resolution champion, while former Mozambique President Joaquim Chissano is the high-level facilitator.
Speaking during the Europe Day celebrations at his residence in Harare, Ambassador von Kirchmann said Europe stands ready to support the Government of Zimbabwe.
“…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.
“The Government of this 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, could potentially and massively increase the country’s investment climate, because it includes, ultimately, access to sovereign lending,” he said.
Ambassador von Kirchmann said this will allow Zimbabwe leapfrog its quest to achieve Vision 2030 of making the country an upper middle income society.
“Sovereign lending could help to make Vision 2030 a reality, because you can build infrastructure. So I think we are collectively very committed to this process,” he said.
Compensation of the former farmers is a central pillar of the debt and arrears negotiations.
This year, Treasury has set aside US$55 million to compensate white former farm owners whose land was appropriated under the Fast-Track Land Reform Programme.
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 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