United States Declines To Support Funding Zimbabwe's Arrears Clearance, Debt Restructuring
The United States of America says it will not participate in any financing options for Zimbabwe’s arrears clearance and debt restructuring process through the African Development Bank (AfDB) or otherwise as long as the sanctions it imposed on the country are still in place.
The US imposed sanctions on Zimbabwe under the Zimbabwe Democracy and Economic Recovery Act (ZDERA).
Speaking during a Roundtable meeting on Zimbabwe’s arrears clearance and debt resolution process dialogue convened on the sidelines of the AfDB annual general meetings on Wednesday in Egypt, US Assistant Secretary of Treasury, Eric Meyer said they will not support Zimbabwe as long as ZDERA is still in force. Said Meyer:
I know President (Dr) Adesina mentioned ZDERA in the United States. That Act does bind us in opposing lending (to Zimbabwe) from international financial institutions and until definitely certain criteria under ZDERA are made.
I want to touch on what really some of those criteria are. They are related to the rule of law, free and fair elections, pre-elections insisting on international standards, land reform and related civilian authority over the military and the police.
I think you notice that there is a lot of commonality between the working groups and strategic dialogue that President Chissano outlined this evening and that is what my Government is bound to meet and that is what we are monitoring and looking at.
Until these conditions are met we are not able to participate in financing options for Zimbabwe through the African Development Bank or otherwise.
We are participating in this (Wednesday) strategic dialogue and we are doing this because of the importance of these reforms that extend beyond everything.
These reforms if successfully executed will create the conditions for social and economic growth in Zimbabwe.
I want to take this opportunity to thank Your Excellence President Adesina and President Chissano for your important remarks today (Wednesday) outlining the challenges in the process that has been undertaken here.
I have been thinking about speaking and I realised there is always a risk of the United States supporting this or the United States does not support this.
That is not what we are going to do. What we are going to do is welcome the opportunity to participate in this strategic dialogue.
This is a process that presents an opportunity for Zimbabwe to work with its partners on reforms and measure progress along the way. That’s really important.
For Zimbabwe to reach its ultimate goal of debt resolution the discussions in the dialogue must be supported by actions as has been discussed earlier today.
It’s imperative for Zimbabwe to demonstrate credible progress in implementing governance, economic and land reforms.
Not just reaching agreements with partners but not implementing those agreements.
Building trust and progress takes time and it’s important for Zimbabwe to stay on course through that process.
Akinwumi Adesina, who is the African Development Bank President, was appointed as leader of Zimbabwe’s arrears clearance and debt process by President Emmerson Mnangagwa in 2022.
Former Mozambique president, Joachim Chissano, was appointed the facilitator between the Zimbabwean government as a debtor, bilateral credit partners, and other relevant stakeholders.
The US enacted ZDERA in 2001 in response to Zimbabwe’s “fast-track land reform” programme.
The US put the Zimbabwean government on a credit freeze through ZDERA (specifically Section 4C titled Multilateral Financing Restriction).
ZDERA forbids US citizens who have senior positions in many multi-lateral institutions from voting for Zimbabwe’s support in areas they have influence.
More: Pindula News
