Zimbabwe Situation

Questions over Britain’s new relationship with Zimbabwe – Zimbabwe Vigil Diary

Source: Questions over Britain’s new relationship with Zimbabwe – Zimbabwe Vigil Diary

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The revelation that the British government is to support a loan to Zimbabwe ahead of the elections has alarmed those opposed to Mnangagwa’s Zanu PF government.

Former Finance Minister Tendai Biti said foreign governments should not back such loans until credible elections have taken place. ‘The elections are only a few months away’, he pointed out. ‘Let’s see the quality of this election first’.

The opposition sees the move as further unbalancing the electoral playing field, arguing that it will give international credibility to the military regime, which has promised reforms but so far delivered little.

The British move was reported by London’s influential Financial Times newspaper, which said this will be the first time the British government has been directly involved in a commercial loan to Zimbabwe’s private sector for more than 20 years.

The amount involved is $100 million and will come from the Standard Chartered Bank with backing from the CDC Group, the government’s development finance institution owned by the Department for International Development. They will share the default risk on the loan facility, said to be intended to provide desperately-needed foreign exchange to struggling businesses.

CDC’s chief executive Nick O’Donohoe, insisted that the move did not represent an endorsement of the Zimbabwean government. But sceptics say that, following the overthrow of Mugabe, the UK seems to be taking a pragmatic ‘realpolitik’ approach to Zimbabwe. This would confirm fears expressed by MDC President Nelson Chamisa during his recent visit to Britain that the British government was focusing on political stability and trade and commerce at the expense of democracy.

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