LIVINGSTONE MARUFU
Zimbabwe’s debt clearance deal with Bretton Woods institutions and other international creditors is hanging in the balance amid revelations the government and the governing party ZANU-PF are divided over United States of America’s “tough demands” .
The division could result in the deal not signed off.
Washington is demanding that Harare, which is battling to clear US$14bn debt to international creditors including the World Bank, the African Development Bank, Paris and non-Paris clubs, among many others, to first fully satisfy tough conditions including having free and fair elections and others set under the Zimbabwe Democracy and Economic Recovery Act (ZIDERA), before the plan is approved.
The conditions were set during the recent meeting between President Emmerson Mnangagwa’s administration and its international creditors.
But, multiple sources close to the development told Business Times this week that there were serious divisions in government and ZANU-PF, which might see the deal not formally signed off.
“There is a serious division over the matter. Some members within the government want the country to satisfy ZIDERA conditions by holding free and fair elections to get the green light for the arrears clearance and debt resolution plan while others are saying Zimbabwe should conduct its elections without taking instructions from some people,” a source said.
Zimbabwe will hold harmonised elections between July and August this year.
Last weekend, ZANU-PF held its primary. However, results of the elections have been withheld awaiting Politburo endorsement. There have been claims of intimidation, vote buying, rigging, and some incidents of violence.
Critics said if that can happen to the people of the same party, more brutality is expected in the next few months as ZANU- PF locks horns with opposition parties especially Citizens Coalition for Change.
“We have the President [Emmerson Mnangagwa] who assured investors and international financial institutions that Zimbabwe will hold free and fair elections. But, the situation on the ground shows there is vote buying, manipulation, and violence among other factors, which point to unfair elections.
“Also, at a time when the President was hosting a high-powered debt resolution plan delegation and was showing sincerity, some powerful figures close to the head of the State were busy hurling some insults on social media thereby showing that some lieutenants want to ruin the processes and are against the re-engagement and engagement processes,” a government source said.
In a recent meeting held in Harare, the US representative told the government’s top officials that unless the administration satisfied the ZIDERA conditions, it would be difficult for Harare to get its plan on debt clearance approved.
“For Harare to accomplish the long-term goal of the debt arrears clearance, we need to be able to move from dialogue to concrete actions that improve governance and economic conditions in Zimbabwe under ZIDERA,” the USA representative said then.
But, in another meeting with President Mnangagwa, hardliners are said to have told him not to listen to the US.
“In a debriefing with the President a few weeks ago, some party hardliners advised that the country should not surrender its sovereignty to the US so that they can get lines of credit.
“Hardliners said if we accept everything the United States says, it’s not surprising that we will be told to accept gay rights and the reversal of the land reform programme so that we can get lines of credit. However, some were of the opinion that there was a need to separate issues as arrears clearance and debt resolution plan is different from sovereignty issue,” a government source said.
British Ambassador to Zimbabwe, Melanie Robinson recently told the delegates in Harare that the process is for helping the Southern African nation and the processes are apolitical.
She said Harare would come up with its solutions, which the international financiers will give guidance and support without interfering with the country’s independence.
ZIDERA outlines four conditions, which include the restoration of the rule of law including the freedom of speech and association, respect for ownership, and title to the property.
Zimbabwe has also been under scrutiny over repressive laws such as the Private Voluntary Organisations Bill, which is currently awaiting Presidential assent.
Analysts said if passed into law, it would be a disaster for the country.
Zimbabwe has also fared badly on the corruption perception index, undermining President Mnangagwa’s Zimbabwe is the open-for-business mantra.
Analysts said Zimbabwe’s rating would plummet in the wake of broadcast by the Qatar-based satellite channel, Al Jazeera. The channel is running a four-part documentary series exposing a gold mafia with alleged links to top government officials and reportedly using the Reserve Bank of Zimbabwe to launder the proceeds.
The central bank has dismissed the allegations.
Washington supported the principle of identifying objective internationally recognised indicators to chart the trajectory of Zimbabwe’s reform progress.
