US delegation to Review Zimbabwe Power-sharing Deal
Posted on February 7, 2010 | Category: Politics; Business, Sport
A US Congressional delegation will visit Zimbabwe this month to review the
power- sharing deal, the embassy confirmed last week.
The delegation will also review US humanitarian work in Zimbabwe.
The delegation is expected in the country after Finance Minister Tendai Biti’s
visit to Washington to lobby for the restoration of Zimbabwe’s voting rights
in the International Monetary Fund.
An upbeat Biti last week said he had met congressmen who had pushed for the
Zimbabwe Democracy and Economic Recovery Act (Zidera) during his recent
visit to Washington.
US embassy spokesperson, Tim Gerhardson confirmed to The Standard about the
impending congressional visit, saying that notice would be given when the
team is due in Zimbabwe.
Gerhardson would however not say whether the delegation’s visit signalled
Washington’s determination to amend Zidera which empowers US executive
directors in multilateral financial institutions to vote against any
extension of any loan, credit, or guarantee to the government of Zimbabwe.
“I am not aware that there are amendments being discussed in the US
Congress. It’s an issue for US Congress,” he said.
Gerhardson said Zimbabwe had made progress on the economic front but noted
it was lagging on the political and democratic fronts.
The proposed amendments come at a time Washington has said it will support
Harare’s campaign to regain its voting rights in the International Monetary
Fund.
Zimbabwe needs to mobilise 70% of the total voting power in the IMF
Executive Board.
However, if Zidera were to be amended today, Zimbabwe still faces some
hurdles as it owes multilateral institutions US$1.3 billion.
The debt has to be cleared before the credit lines are opened and analysts
fear the impasse on how the country’s external debt could be cleared will
delay the process.
“You can repeal Zidera today but you cannot get resources from international
financial institutions until we pay the debts,” said Gorden Moyo, Minister
of State in PM’s office.
The Zimbabwe ruling coalition partners are haggling over the clearance of
the country’s debt.
MDC-T says if the country is classified as a Highly Indebted Poor Country
(HIPC) it will create fiscal space for poverty reduction interventions to
promote economic growth.
But Zanu PF believes the country is “too rich to be poor” and can use its
vast mineral resources to clear the US$5.7 billion total external debt.
Youth Development, Indigenisation and Empowerment Minister, Saviour
Kasukuwere, told a stakeholders meeting on Thursday that HIPC can only be
taken on board if sanctions are removed.
“HIPC is a programme worth considering but we as political players have to
make sure that the areas we are operating in are opened up.
“We can go for HIPC until those who put sanctions realise that they have to
be removed,” he said.
Moyo sees it differently.
“HIPC is a sanctions-busting method that by the end of it we would have
resources.
Chris Mutsvangwa, Zimbabwe’s former ambassador to China says Zimbabwe can
use its mineral resources to clear its debt, capitalising on the demand for
minerals.
“This is prime time for Africa because our resources are in demand. We have
a Kirsty Coventry in the minerals Olympics,” he said.
Coventry is Zimbabwe’s world swimming champion.
For a country to qualify it should be an International Development
Assistance (IDA) -only and Poverty Reduction Growth Facility eligible and
should have per capita income of less than US$1 095.
Zimbabwe is not yet IDA-only and owes IMF US$138 million under the Poverty
Reduction Growth Facility Trust. However per capita income as of 2008 was
US$340.
For a country to qualify it has to face a sustainable debt burden.
The country should establish a track record of reform and sound policy
implementation under the auspices of an IMF and IDA supported programmes.
At the end of last year, Zimbabwe met most of the conditions.
For the country to attain the HIPC status it also has to clear multilateral
arrears to IMF, World Bank and African Development Bank.
The trio has a preferred creditors’ status meaning that arrears have to be
cleared first before a country can benefit from the HIPC debt relief.
The HIPC initiative is credited for reducing debt service paid.
Of the 35 countries in which the HIPC package was approved debt service paid
declined by 2.5% of Gross Domestic Product between 1999 and 2007.
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