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Zimbabwe, EU sign US$270m development deal
16 Feb 2015 at 14:12hrs | Views
Zimbabwe and the European Union (EU) have signed an agreement for the provision of USD$270 million in development assistance.
The EU says half of the amount is available for use this year while the remainder should be exhausted by the end of 2016.
The availing of the funding is the first direct engagement between the EU and Zimbabwe since 2002 when article 96 of the Cotonou Partnership Agreement was revoked owing to strained relations over land.
The development assistance in the health sector amounting to US$88 million is aimed at increasing protection against threats, strengthening and further developing the national health system while another 88 million euros seconded to agriculture is aimed at improving the policy framework for sustainable growth.
"Zimbabwe is set to benefit Euro 234 worth of programmes and projects, under the 11th EDF allocated as follows: health 88 million euro, agriculture based economic development 88 euro, governance and institution building for 45 million euro, civil society will get 6 million euros, national authorising office will get 3 million euros and technical cooperation facility will get 4 million euros," said Willard Manungo, the Permanent Secretary in the Ministry of Finance.
The EU Head of Delegation, Mr Philippe Van Damme admitted that there are still a number of challenges with the relations between the trading bloc and Zimbabwe, adding that the signing ceremony is an important step in the re-engagement process.
"We have made an important step in our cooperation with Zimbabwe," said Mr Van Damme.
The Minister of Finance and Economic Development, Cde Patrick Chinamasa said while government appreciates the gesture, there is need for foreign direct investment and the coming back of the European Investment Bank (EIB) for the support of productive sectors of the economy.
"We appreciate your efforts but if we could have the EIB back in Zimbabwe, I am happy that the EIB will have another mission to Zimbabwe. Out productive sector needs support to accelerate economic growth and achieve sustainable development," he said.
Zimbabwe and the EU relationship was strained after Britain internationalised a bilateral dispute with Zimbabwe over land.
The bloc then imposed sanctions on Zimbabwe but has now lifted most of them but maintains the illegal embargo on President Robert Mugabe and the First Family.
Recently, the EU announced it had lifted sanctions on President Mugabe by virtue of him being the AU Chairman
The EU says half of the amount is available for use this year while the remainder should be exhausted by the end of 2016.
The availing of the funding is the first direct engagement between the EU and Zimbabwe since 2002 when article 96 of the Cotonou Partnership Agreement was revoked owing to strained relations over land.
The development assistance in the health sector amounting to US$88 million is aimed at increasing protection against threats, strengthening and further developing the national health system while another 88 million euros seconded to agriculture is aimed at improving the policy framework for sustainable growth.
"Zimbabwe is set to benefit Euro 234 worth of programmes and projects, under the 11th EDF allocated as follows: health 88 million euro, agriculture based economic development 88 euro, governance and institution building for 45 million euro, civil society will get 6 million euros, national authorising office will get 3 million euros and technical cooperation facility will get 4 million euros," said Willard Manungo, the Permanent Secretary in the Ministry of Finance.
The EU Head of Delegation, Mr Philippe Van Damme admitted that there are still a number of challenges with the relations between the trading bloc and Zimbabwe, adding that the signing ceremony is an important step in the re-engagement process.
"We have made an important step in our cooperation with Zimbabwe," said Mr Van Damme.
The Minister of Finance and Economic Development, Cde Patrick Chinamasa said while government appreciates the gesture, there is need for foreign direct investment and the coming back of the European Investment Bank (EIB) for the support of productive sectors of the economy.
"We appreciate your efforts but if we could have the EIB back in Zimbabwe, I am happy that the EIB will have another mission to Zimbabwe. Out productive sector needs support to accelerate economic growth and achieve sustainable development," he said.
Zimbabwe and the EU relationship was strained after Britain internationalised a bilateral dispute with Zimbabwe over land.
The bloc then imposed sanctions on Zimbabwe but has now lifted most of them but maintains the illegal embargo on President Robert Mugabe and the First Family.
Recently, the EU announced it had lifted sanctions on President Mugabe by virtue of him being the AU Chairman
Source - zbc
