Source: Zimbabwe edges closer to joining BRICS bank – herald
Africa Moyo and Oliver Kazunga
ZIMBABWE is edging closer to potentially unlocking critical development finance after formal negotiations to join the BRICS’ New Development Bank began, offering a possible lifeline as the country remains locked out of traditional Bretton Woods multilateral lenders.
Owing to sanctions imposed by the United States, the United Kingdom and the European Union at the turn of the millennium, Zimbabwe has not been able to get concessional financing from international financial institutions such as the International Monetary Fund and World Bank Group.
Harare is presently seeking at least US$2,5 billion in bridging finance to clear arrears owed to the World Bank, the African Development Bank and the European Investment Bank.
The Government has relied on public-private partnerships (PPPs) to advance its economic reform agenda, which also includes infrastructural development projects like road rehabilitation and dam construction.
In a statement yesterday, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government had received official communication confirming the milestone from New Development Bank president Dilma Rousseff.
“The Government of the Republic of Zimbabwe welcomes the decision by the board of directors of the New Development Bank (BRICS Bank) authorising the commencement of formal negotiations regarding Zimbabwe’s membership of the bank,” he said.
“The Government received official communication from the president of the New Development Bank, Dilma Rousseff, confirming the start of the accession process and outlining the next steps towards Zimbabwe’s full membership.”
He described the development as a significant endorsement of Zimbabwe’s economic reform agenda and growing international confidence in the country’s investment climate.
“This landmark development represents a major milestone in Zimbabwe’s engagement and re-engagement agenda and reflects growing international confidence in the country’s economic reform programme, macroeconomic stability agenda and private sector-driven investment growth strategy,” he said.
Zimbabwe’s prospective membership of the BRICS Bank is expected to unlock long-term financing for strategic national projects under the National Development Strategy 2 (NDS2) and Vision 2030.
“Membership to the New Development Bank is expected to strengthen Zimbabwe’s capacity to mobilise long-term development financing for key national priorities under NDS2, as espoused by President Mnangagwa’s mantra of ‘leaving no one and no place behind’, and Vision 2030, including infrastructure modernisation, energy security, industrialisation, digital transformation, climate resilience, private sector growth and value chain development,” said Prof Ncube.
The latest development, he added, also aligns with Zimbabwe’s broader strategy of strengthening economic ties with emerging economies and integrating into evolving global financial and technological systems associated with BRICS.
“The commencement of formal negotiations also advances Zimbabwe’s broader efforts to deepen South-to-South win-win cooperation with emerging economies and integrating into the fast-evolving global technological and financial revolution associated with BRICS.”
Prof Ncube reaffirmed the Government’s commitment to reforms aimed at accelerating economic growth and improving livelihoods.
“The Government remains committed to implementing bold reforms that promote sustainable economic growth, job creation, innovation and inclusive prosperity, while positioning Zimbabwe as a competitive and resilient upper middle-income economy,” he said.
He added that the move reinforced Zimbabwe’s long-term development ambitions.
“This important step reinforces Zimbabwe’s development trajectory and demonstrates growing momentum towards accelerated economic transformation, strategic infrastructure development and enhanced South-to-South economic integration, in line with the country’s Vision 2030 aspirations.”
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