High-Level Delegation from Zimbabwe calls on the African Development Bank on the country’s arrears clearance

a High-Level Delegation from Zimbabwe, led by the country’s Finance and Economic Development Minister, Patrick Chinamasa, called on the African Development Bank Group and met with its President, Dr. Akinwumi A. Adesina. The Delegation comprised among others, the Governor of the Reserve Bank of Zimbabwe, John P. Mangudya, and other officials from the Ministry of Finance and Reserve Bank.

The meeting provided an update of the progress made in view of the upcoming meeting scheduled to take place in Lusaka, Zambia, on 27 May 2016 in the margins of the AfDB Annual Meetings. Minister Chinamasa briefed President Adesina on the difficult economic situation of Zimbabwe, which requires immediate action. The meeting took note of the progress made with the IMF Staff monitored Program, particularly in the areas of fiscal consolidation, financial governance, economic and land reforms, as well as the positive outcomes of the its Board consultation on 2 May 2016.

The meeting also discussed the recent policy measures put in place by the Monetary Authorities to curb capital flight from Zimbabwe and measures to promote production and exports in view of the global external factors of declining commodity prices and the strong USD.

President Adesina welcomed the measures as critical, especially now when Zimbabwe is on the verge of completing its reengagement process. The country needs to retain its foreign exchange resources to develop its economy and to ensure that future resources from development partners and international financial institutions are retained and used appropriately to sustain growth.

The meeting noted the convergence between the priorities of the AfDB’s High 5s and the areas of focus of Zimbabwe’s post-arrears clearance program. President Adesina congratulated the Minister Chinamasa for his leadership in the reengagement process, and reassured him that the AfDB will continue to support the country, including through its private sector window, in providing energy, feeding the population, rehabilitating the infrastructure and reviving the industry, because Zimbabwe is key to the region.

Minister Chinamasa updated President Adesina on the financial arrangements -which will be presented in Lusaka – made by the country to clear its arrears. He also stressed the importance of a timeline for concluding the process with the IFIs in order to consolidate the gains made on the reforms. He praised the coordinated approach of the three institutions (AfDB, IMF and WB) in supporting the country’s arrears clearance process.

Source: African Development Bank Group