AFDB pledges to help build economic resilience in Zim
THE African Development Bank ( Afdb) has committed about US$10,5 million for three new projects in Zimbabwe for the next two years as part of efforts to strengthen resilience and build competitiveness within Government and private sector productive capacity.
The commitment is part of the Zimbabwe Country strategy 2021- 2023, which outlines private sector support and institutional reforms the bank will support in the country, which was launched on Wednesday.
Ms Moono Mupotola, the AfDB country manager for Zimbabwe, said the bank had been one of the key development partners of Zimbabwe with an investment portfolio of approximately US$240 million, primarily in infrastructure, finance, agriculture, industry and governance.
“We have a limited envelope of units of account of 7,5 million Euro, approximately US$10,5 million for three new projects in the next few years,” she said.
She noted that the first project to be financed for 2,5 million Euro (US$2,925mln) involved sustainable enterprise development for youths and women through supporting their entrepreneurial empowerment projects and skills development.
“Through this project, the bank will foster access to private sector development and foster employment opportunities and incomes which are important in sustaining the economic recovery trajectory of the country,” Ms Mupotola said.
She said the second project was the Zimbabwe Energy Reform programme, which seeks to support energy reforms in order to avert increase in power shortages and to consolidate short term gains and efficiencies.
The AfDB country manager pointed out that a reliable electricity energy source has direct bearing on uninterrupted production which can sustain economic growth.
The third project will see the bank developing the institutional support for governance and public finance management program to support the capacity of the debt management office, Parliament of Zimbabwe and the Procurement Regulatory Authority of Zimbabwe (Praz).
“As a result, this will support the government’s capacity in its effort to reduce poverty and sustain growth,” she said.
According to Ms Mupotola, the two year strategy for Zimbabwe, which focuses on efforts to re-industrialise the economy was approved by the African Development Bank board of directors in May this year.
She noted that the new strategy also emphasised on support through Government on its re-engagements efforts to clear arrears to several creditors.
“Therefore, our focus is to work closely with other international financial institutions, development partners and governments in finding resolution to this challenge as well as providing technical assistance to the projects,” Ms Mupotola said.
She indicated that the strategy which will be implemented in the next two years also focuses on supporting Zimbabwe’s private sector which has been severely affected over the years by economic distress.
“The focus of our strategy is to build resilience and build competitiveness by improving private sector productive capacity through improved business ecosystem and infrastructure, and also to leverage the opportunities presented by the Africa Continental Free Trade Area,” she said.
She said the second pillar of the strategy is on building accountability in institutional reforms, in areas such as public commerce management, strengthening key government institutions in the Parliament, and debt management office and support reforms in the energy sector.
“At the same time, the climate agenda will cut across all programs,” she highlighted. Ms Mupotola, noted that over the past 10 years, AfDB Zimbabwe office has managed the Zimfund US$240 million with projects in infrastructure, energy and other key sectors.
The bank has also supported private sector projects through lines of credit to CABS of US$25 million, which has been extended to local farmers and SMEs.
The other is the US$5 million that was extended to Olivine/Wilmer for supporting food production.