HomeBusinessGovt, World Bank to identify Zim Reconstruction Fund projects

Govt, World Bank to identify Zim Reconstruction Fund projects

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THE government and the World Bank are yet to identify specific projects that will benefit from the Zimbabwe Reconstruction Fund (Zimref), a top diplomat has said.


BY VICTORIA MTOMBA

In an interview, European Union ambassador to Zimbabwe Philippe van Damme said the regional bloc had contributed close to $24 million to the fund.

EU contributed 10 million euro ($11,3m) through the European Development Fund national indicative programme.

The United Kingdom pledged 6 million euro ($6,7 million), Sweden pledged $5 million and Denmark had an initial disbursement of $1 million.

Van Damme said: “The specific projects funded out of Zimref still need to be identified and agreed with the World Bank and the government of Zimbabwe, but priority will be given to the implementation of economic governance reforms, including the implementation of the structural benchmarks identified in the IMF (International Monetary Fund) Staff-Monitored Programme.”

The IMF Staff-Monitored Programme includes clarification of the fiscal regime, transparency, accountability of the mining sector, improvement in public finance management including amendments to the Public Finance Management Act and the Public Procurement Act and an audit and enhanced oversight of State-owned enterprises.

The fund is managed by the World Bank to strengthen the systems for reconstruction and development with a focus on stabilisation and reform, reconstruction, development and poverty alleviation efforts in Zimbabwe.

“The money earmarked by the EU for the Zimbabwe Reconstruction Fund aims at supporting the government in implementing its economic reform agenda, and in particular public finance management reform. The EU focus is not on physical construction projects,” Van Damme said.

The fund is expected to raise up to $100 million from donors in a development expected to stimulate investment in the country.
Zimref replaced the Zimbabwe Analytical Multi-Donor Fund.

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