5 May 2009

Harare — THE incoming ANC government in South Africa will continue to support Zimbabwe and ensure that the inclusive Government delivers, the party's treasurer-general Mathews Phosa has said.

Phosa, who was speaking to international investors in London at the weekend, said the inclusive Government must be given a chance to succeed.

There had been speculation in some circles that South Africa's president-designate Jacob Zuma would take a hard-line stance against Zimbabwe.

"We will continue to support the Zimbabwean process to ensure that there is normalisation and democratisation in Zimbabwe. We need to continue to support the sensitive aspect of life in Zimbabwe as it affects people. For example, health affects the economy of Zimbabwe," Phosa said.

Following the formation of the inclusive Government in February, Zimbabwe has received numerous pledges of assistance and has also managed to secure lines of credit from regional countries and organisations.

Zimbabwe has secured lines of credit amounting to US$400 million from the region to revive operations of local companies in yet another sign that the international community is warming up to the latest developments in the country.

Minister of Industry and Commerce Welshman Ncube confirmed recently that Zimbabwe had received US$200 million lines of credit from Sadc and a similar amount from the Common Market for Eastern and Southern Africa.

Zimbabwe needs about US$8,3 billion to fund the Short-Term Emergency Recovery Programme.

A Government delegation led by Finance Minister Tendai Biti was recently in Washington, DC, to seek funding for the economic turnaround programme from the International Monetary Fund and the World Bank.

The two institutions cut the country's lines of credit as part of the illegal Western sanctions in the wake of the passage of the US sanctions law, the so-called Zimbabwe Democracy and Economic Recovery Act in 2001.

The Zimbabwean delegation then headed for London on a similar mission where Minister Biti held talks with British Foreign Secretary David Miliband and Africa Minister Mark Malloch-Brown -- the first official meetings in nine years between ministers from the two countries.

The IMF has observed that the inclusive Government has taken encouraging and positive steps to economic recovery that needed to be supported.

The IMF board meets today to hold further discussions on Zimbabwe's presentations and the Article IV Mission report. An IMF team that was in the country for the Article IV consultation meetings between March 9 and 24 reported that Zimbabwe had taken positive steps towards re-integration into the international financial system and qualification for potentially new loans for reconstruction.

The Zimbabwean delegation then proceeded to London on a similar mission where Minister Biti held talks with British Foreign Secretary David Miliband and Africa Minister Mark Malloch-Brown -- the first official meetings in nine years between ministers from the two countries.

The British government welcomed the delegation to the talks, but maintained that they wanted to see significant progress in the implementation of the power-sharing agreement.