Zim receives Western funded ‘bailout’ for water and power

via Zim receives Western funded ‘bailout’ for water and power | SW Radio Africa by Alex Bell on Thursday, January 23, 2014

A multi-million dollar loan, earmarked primarily for power and water support in Zimbabwe, has been handed to the ZANU PF government by the African Development Bank.

The $53 million loan agreement was signed on Wednesday by the Bank’s representative Mateus Magala and Finance Minister Patrick Chinamasa. Of that amount, almost $40 million is being funded by the Zimbabwe Multi-Donor Trust Fund, set up in 2010 to support the Zim government’s ‘priority recovery’ activities.

The major donors of that Fund include Australia, Denmark, Germany, Norway Switzerland and the United Kingdom, who have for years poured money into Zimbabwe by way of humanitarian relief. This latest loan is meant for water supply, sanitation and power infrastructure rehabilitation projects.

The rest of the Development Bank grant is being paid out by the African Development Fund and is set to finance governance and institutional strengthening programs, youth and tourism enhancement projects and more.

There was no detail provided about what accountability measures would be enforced to ensure that ZANU PF spends the money where it is needed, with the party responsible for years of financial mismanagement and widespread economic destruction.

Economic analyst Bekithemba Mhlanga said it was likely that some enforcement measures would be in place.

“If you take a place like Zimbabwe where there are concerns about how these kinds of funds are used, and about transparency and accountability, you’ll find mechanisms are in place to ensure a confidence level of transparency and proper use of the funds,” Mhlanga said.

Zimbabwe’s external debt is pegged at about $11 billion, and global lenders like the World Bank and the International Monetary Fund have not given the country any new loans on this basis.

Mhlanga said that the ZANU PF government could start paying off its debt, if it kick-started the country’s economic recovery.

He added: “Water and power remain critical for Zimbabwe’s economic recovery and it is important the money is used for those purposes. What these loans say to Zimbabwe is that this is a second chance. This is an opportunity for Zimbabwe to take that second chance and demonstrate that they are able to live by whatever commercial obligations it has.”

 

COMMENTS

WORDPRESS: 10
  • comment-avatar

    It’ll just end up in fareast secret accounts again

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    Dambe 8 years ago

    What a waste of money! Why don’t thet take money from the US$200 million they allocated to the President’s Office & redirect to crucial services? Isn’t it mad for anybody to deliberately put their house on fire only to beg neighbours to come and put it off???

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    John Thomas 8 years ago

    This exactly what should not be done. Giving the ZANU government money is the same as supporting it. Are these foreigners saying this is the government we deserve?

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    Years of mismagement of Government fund make it so hard to believe that half of that money will be used for the intended purpose. Before the ink dried on the agreement the money had already been partitioned.
    Lost faith in thos lot of looters masquarading as a Government of the people. But wouldn’t it be wonderful to be proven wrong just this once..

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    simon 8 years ago

    western nations who give or loan zim need their heads read. don’t expect this one to be paid back either there is a long list of defaults already. well some ministers will line their pockets out of this one ….again.

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    Ruramai 8 years ago

    Zim owes billions and we have absolutely nothing to show for it. The lenders know very well that Mugabe is not capable of putting money to good use. $53 million will cover just 5 trips to Malaysia so he is probably scoffing at these westerners for donating an amount that isnt even adequate to cover Grace’s pocket money.

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    Chris 8 years ago

    thxs to the donors for helping us. one way or the other.

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    kumbie 8 years ago

    we appreciate the assistance but until we clean house …its like adding water to a leaking pot

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    Fallenz 8 years ago

    The projects will not be completed. Mugabe spokesman will lambast the West for supplying such a paltry sum. The required audit will disclose the funds were subverted to other uses. Government’s lack of cooperation will prevent tracking of where the money went. ZANUPF bigwigs will shrug their shoulders, turn their backs, and snicker as they walk away….

    Stupid West.