AfDB gives Zim thumbs up

The African Development Bank has lauded recent measures taken by Zimbabwe's Finance Ministry and the Reserve Bank to halt currency flight and re-engage with the IMF.

Finance and Economic Development Minister Patrick Chinamasa, RBZ Governor Dr John Mangudya and other officials recently updated AfDB president Dr Akinwumi Adesina on developments in Zimbabwe ahead of a scheduled meetin in Lusaka, Zambia.

According to the Africa News website, Minister Chinamasa briefed Dr Adesina on the imminent introduction of bond notes as part of a cocktail of measures to curb capital, and efforts to promote production and exports in view of external factors like declining commodity prices and a strong US dollar.

They also discussed progress made with the IMF Staff Monitoring Programme, particularly in the areas of fiscal consolidation, financial governance, and economic reforms.

Dr Adesina reportedly welcomed the measures as critical, especially now that the country was on the verge of completing its re-engagement process.

He congratulated Minister Chinamasa for his leadership in the re-engagement process, and reassured him that the AfDB would continue to support the country, including through its private sector window, in providing energy, food security, infrastructure rehabilitation, and reviving industry; adding that Zimbabwe was key to Southern Africa's economic growth.

Minister Chinamasa updated Dr Adesina on financial arrangements — which will be presented in Lusaka — made by Zimbabwe to clear its foreign arrears.

He also stressed the importance of a time line for concluding the process with international financial institutions in order to consolidate the gains made on the reforms.