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THE World Bank has launched a new $44 million multi-donor fund in the country to help fund new and ongoing investment projects.
This year the World Bank successfully completed the Zimbabwe Analytical Multi-Donor Trust Fund (A-MDTF) which spent over $22 million on assistance to strengthen the dialogue with the government on policy and institutional reforms.
Addressing journalists in Harare, World Bank country director for Malawi, Zambia, and Zimbabwe Kundhavi Kadiresan said a total of six foreign donors have come together to create the Zimbabwe Reconstruction Fund (ZimRef).
“This trust fund will expand the Bank’s support to include investment projects and to channel some financing directly through government systems.
“Six donors, the European Union, United Kingdom, Germany, Norway, Denmark, Sweden and the World Bank State and Peace Building Fund are contributing $44 million,” she said.
Kadiresan said the fund was approved early this year and the bank is looking to more than double the fund next year.
“In May 2014, the board of executive directors approved the Zimbabwe Reconstruction Fund to support the implementation of Zim-Asset.
“We see the fund increasing to $100 million in the coming year to help increase activities here and introducing investment projects,” said Kadiresan.
She added: “Over the last few months, the World Bank and government have renewed efforts toward finding a resolution of the outstanding areas to the Bank,” she said.
“In this year’s budget, the government has taken an important step to increase its payments to the Bank in line with its fiscal capacity,” she said.
Speaking at the same event, Minister of Finance and Economic Development Patrick Chinamasa said $15 million will be released from the ZimRef next year to help tackle some of the more urgent reform measures such as parastatal reforms.
“There will be $15 million to be made readily available next year under ZimRef which will give me the discretion to carry out these audits.” — Ziana.
Online Reporter