BERNARD MPOFU
Finance Minister Mthuli Ncube yesterday launched a diplomatic offensive at the European Parliament amid calls to quicken political and economic reforms as Zimbabwe seeks to mend relations with the West. The country also wants to settle its arrears with multilateral and bilateral lenders, Business Times has established.
Zimbabwe’s economic fortunes are currently blighted by rising inflation, weakening local currency and erratic fuel supplies that have crippled most businesses. Price hikes saw annualised inflation reaching 20,85% in October, the highest since the introduction of the multiple currency regime mainly dominated by the US dollar.
In November, inflation further rose to 31%, eating into disposable incomes of workers. With exports sagging and foreign direct investments trickling, the government is now pining its hope on international financial institutions for budgetary support.
Ncube yesterday appealed to the European Conservatives and Reformists Group (ECR) during the ECR Africa Summit held in Belgium to consider investing in Zimbabwe.
The ECR is the third largest political group in the European Parliament. It is a centre-right, Eurosceptic and anti-federalist political group created in 2009 to articulate a Eurorealist agenda.
The ECR Africa Summit intended to expand upon already existing areas of cooperation and delve deeper into key challenges and opportunities in order to strengthen the EU’s collaborative and effective regional partnership with African nations.
Impeccable sources told the Business Times that Zimbabwe also pushed for the clearance of arrears to the European Investment Bank after the settlement of World Bank and African Development Bank arrears.
After settling IMF arrears of $107m in November 2016, what is now left are arrears to the World Bank ($1,3bn), African Development Bank ($680m) and the EIB ($308m).
The sources said Ncube made a presentation on economic growth in African nations where he assured investors that they would yield good returns in Zimbabwe. But some lawmakers took him to task over Zimbabwe’s promises to carry out reforms.
Many African nations are experiencing economic growth on a high scale while Zimbabwe continues to lag due to a costly business environment, among other factors. Therefore, issues such as investing, lending, and increasing growth and banking capital are high on the political agenda.
“The summit was an opportunity to exchange best practice between the EU and African nations in key areas such as democracy, security, economy, health related issues, emergent technologies and the use of development aid,” a Western diplomat said.
“Minister Ncube appealed to the EU to assist Zimbabwe in its growth plans but the regional bloc also wanted to know how Zimbabwe has progressed with its reform agenda.” the diplomat added.
In 2014, the EU lifted trade sanctions on Zimbabwe, signalling first steps towards the restoration of relations between the West and Harare.
Zimbabwe is also under the spotlight of the EU following the post-election violence on August 1 2018. Six people died while dozens were injured, mainly from gunshot wounds after soldiers opened fire on opposition protesters who claimed the election had been rigged in favour of the ruling Zanu PF party, a claim Zanu PF denied.
In its post-election report, the EU Election Observer Mission said Zimbabwe needed a number of political reforms to level the political playing field.
The government has undertaken to embark on far-reaching reforms, such as repealing the Public Order and Security Act, and media laws that stifle press freedom.
