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Thursday, September 19, 2019

IMF, AfDB back Zimbabwe’s macro economic reforms

Bilateral and multilateral financial institutions have expressed their full support for the Zimbabwean government’s economic reform processes through the provision of technical and financial support.

At the turn of the century several multilateral financial institutions including the International Monetary Fund (IMF) and the World Bank withdrew budgetary support to Zimbabwe due to fiscal indiscipline and defaults on loan repayments.

However, government under the second republic has demonstrated its commitment to reform and break away from the past through implementing measures enshrined in the Transitional Stabilisation Programme (TSP).

African Development Bank Country Director for Zimbabwe Mr Dimone Kitabire revealed at a recent function that such commitment to reform has triggered the renewal of relations with the government of Zimbabwe.

“The African Development Bank supports government’s efforts to set a long lasting stable economic framework which will make Zimbabweans flourish again hence we will continue to render resources so that the journey can be completed,” he said.

The multilateral financial institutions have in the past expressed reservations over issues such as wage increases which the government is currently working on.

However, Finance and Economic Development Minister Professor Mthuli Ncube said the IMF had no issues with government raising the salaries of civil servants.

“The IMF has no concerns in us raising the wage ceiling for civil servants but it has simply reiterated the importance of not supporting that through borrowing otherwise the fund is fully supportive of our efforts to reform the economy,” said Professor Ncube.

Treasury has made progress in the repayment of debt and arrears to the IMF hence the fund has provided technical support in the form of a staff monitored programme to assist in stabilising the economy.

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