AFDB Commends Zimbabwe's Recovery

The President of the African Development Bank (AfDB) Group, Mr. Donald Kaberuka, on Monday called on Zimbabwe's Government of National Unity to reduce economic policy uncertainties that could undermine the country's recent economic recovery.
Speaking at the launch of the Zimbabwe Multi-donor Trust Fund (Zim-Fund) on Monday, he urged the government to implement policies that would boost confidence in order to keep momentum.
The Zim-Fund has provided the basis for a process of re-engagement with the international community.
The Zim Fund, which is now operational with an initial commitment of US$68.8 million, is a first step on this road.
On a 24-hour visit to Zimbabwe, Mr. Kaberuka also announced the opening of the Bank's Zimbabwe Country Office and discussed the state of the economy with local authorities, including progress on a framework for the country's multilateral debt.
In a speech for the Euro money sponsored investment conference taking place in Harare, President Kaberuka commended the macro-economic stability restored since the establishment of the Government of National Unity.
He however observed "this progress must now be consolidated and translated into better livelihoods for the people of Zimbabwe. The economy had made steady and credible recovery but was a long way from operating at its previous potential. "
The AfDB President expressed his hope that Zimbabwe can join this dynamic and take advantage of the opportunities in the global economy.
President Kaberuka noted the urgent need for the rehabilitation of key infrastructure.
At the request of the Zimbabwean Government, the AfDB prepared an assessment of the state of infrastructure, to provide a roadmap for the Government, donors and the business community on how to address this critical bottleneck.
The AfDB President observed that there was broad agreement that Zimbabwe's external debt was unsustainable and stood in the way of efforts to raise the finance necessary to fund the economic recovery, and in particular to rehabilitate infrastructure.
Commending the authorities' determination to agree on a debt management framework, President Kaberuka said that the AfDB stands ready to work with the Zimbabwean authorities and its multilateral partners on the issue.
He however added that the authorities must quickly agree on a debt management framework, and do more to boost investor confidence and partners' perception about policy predictability.
Kaberuka also launched Zimbabwe's Infrastructure Flagship Report, "Infrastructure and Growth in Zimbabwe: An Action Plan for Strengthened Recovery," at an international investors' conference in Harare.
It is part of the analytical work aimed at helping to strengthen the AfDB's leadership in Zimbabwe's infrastructure sector.
The report focuses on the services associated with transport, electric power, information and communication technologies (ICT), and water and sanitation in Zimbabwe.
It provides a detailed assessment of the current status of the infrastructure and services in these areas and their role in regional integration within the Southern Africa region.
It also sets achievable objectives for Zimbabwe's infrastructure by 2020, and lays out an action program for achieving these objectives, which includes policy and institutional reform, capital expenditure programs for rehabilitation and new capacity, and increased resource allocation for maintenance of these facilities.
The report provides options for financing the proposed program, identifies the specific areas where there is a role for private investment, and discusses improvements in the operating environment that will be required to attract this investment.