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Zim receives $100m boost from EU

Business
Zimbabwe and the European Union has signed five financial agreements amounting to €89 million ($97,9 million) under a fund by the European bloc to support the country’s efforts in implementing crucial political and economic reforms.

Zimbabwe and the European Union has signed five financial agreements amounting to €89 million ($97,9 million) under a fund by the European bloc to support the country’s efforts in implementing crucial political and economic reforms.

BY TARISAI MANDIZHA

Under the European Development Fund (EDF) 2014-2020 National Indicative Programme (NIP), €234 million has been set aside to assist Zimbabwe.

The financial agreement, signed yesterday, will see resources channelled towards health, agriculture and institution building. The health sector is the biggest recipient with €55 million as support to Health Transition Fund 2015 and the Health Development Fund (2016-2020), administered by Unicef.

Speaking at the signing ceremony, Finance minister Patrick Chinamasa said the resources will go towards improving health outcomes for the country’s population, resilience building and food and nutrition security (€15 million), public finance management enhancement programme (€10 million), support to national authorising office and the technical co-operation facility (€6 million), €3 million for promoting migration governance under the Zimbabwe-European Co-operation which marks a major milestone in the normalisation of relations with EU.

Chinamasa-5

In February, Zimbabwe and the European Union signed the 11th Development Fund National Indicative Plan, which offered a total support of €234 million ($259,74 million).

The fund targets agriculture-based economic development, health and governance and institutional building.

Finance and Economic Development permanent secretary Willard Manungo said the programmes are aimed at protecting the population against health threats, in particular those at the root of maternal and child mortality, strengthening national health systems at provincial and district levels and promoting promoting equal access to health services by supporting the necessary reforms on health financing and governance.

“The signature of these five financial agreements confirms the continuing normalisation of the relations in terms of development co-operation between the EU and Zimbabwe. The different programmes have been designed jointly by the respective line ministries and the EU delegation and will effectively contribute to the implementation of the national priorities outlined in the ZimAsset. Government remains committed to full re-engagement with the EU and to the implementation of the NIP,” Manungo said.

Head of EU delegation to Zimbabwe, Philippe Van Damme said less than 11 months ago the EU took a further step towards the normalisation of relations with Zimbabwe allowing the measures under Articles 96 of the Cotonou Agreement to expire, enabling, for the first time since 2002 to make multi-year aid commitments to Zimbabwe.

“Since the lifting of the Article 96 Appropriate Measures in November 2014, the EU has intensified its policy dialogue with the government of Zimbabwe. The programmes we signed today [yesterday] are the direct results of this renewed partnership and should lead to more efficient and effective use of development funding in helping address the reform agenda of the government and promoting the structural reforms required for the inclusive and sustainable development of Zimbabwe,” he said.