British Lord suggests economic rescue package for Zimbabwe, but plan shot down

Lord Howell of Guildford: Could my noble friend say a little more about the workings of EU and American sanctions, which, as the noble Lord, Lord Collins, just pointed out, are being increased at the moment? I know the intention is that they should hit entities and officials, and maybe they are doing so, but there are suggestions that one outcome is that this is making the food situation even worse for many innocent people. Can he explain how sanctions are working and whether we are satisfied with how they are operating?

Earl Howe: We are not wholly in agreement with the EU on its approach to sanctions. During the EU’s annual review of its Zimbabwe sanctions regime, for example, it decided to suspend sanctions on Grace Mugabe. As I said, the UK remains aligned to the EU’s restrictive measures on Zimbabwe during the transition period. We did not agree with its decision to suspend sanctions on Grace Mugabe; we will review the whole sanctions regime at the end of the year, as I have mentioned. It is important to stress that our commitment to the people of Zimbabwe did not stem from being an EU member. We have long-standing, deep relations with that country, as noble Lords will know. We will continue to raise our concerns with a range of international partners and most recently did so at the UK-Africa Investment Summit.

Lord Alton of Liverpool: My Lords, will the noble Earl return to the question put to him by the noble Lord, Lord Collins, about the use of Magnitsky powers? With inflation in Zimbabwe running at 500% by the end of last year, extreme poverty rising to 34% and corruption remaining rampant—authoritarian and brutal individuals own properties in London and have salted away money and assets here—why are the Government considering excluding kleptocracy and the misuse of resources by political leaders from the Magnitsky powers? Will he give an undertaking that the Government will reconsider that?

Earl Howe: My Lords, I will certainly take that point away and bring it to the attention of colleagues; it is very important. We do our utmost to ensure that our bilateral aid, for example, does not go through the Government of Zimbabwe or their agencies directly. We work primarily through multilateral organisations, notably United Nations agencies. The noble Lord is absolutely right: the economic crisis in Zimbabwe is very serious indeed. We are disappointed that the staff-monitored programme agreed with the IMF has gone off-track. Our focus at the moment is on mitigating the worst impacts of the economic crisis and concentrating on the most vulnerable Zimbabweans.

Lord Chidgey: My Lords, the US ambassador to Zimbabwe, Brian Nichols, has stated that the Government must implement a market-based agricultural policy, fully liberalising the trade in grains and paying farmers on a par with the cost of imports. He added that the Grain Marketing Board was allocating subsidised grain to millers, who were selling it on the black market in neighbouring countries. This corruption costs the Zimbabweans in both food and treasure. What measures are the UK Government taking to support the US plans for a market-based economy and to make sure that UK aid is not lost through corruption?

Earl Howe: The noble Lord makes some extremely important points. As I mentioned, DfID Zimbabwe operates under a strict funding policy whereby no UK aid money passes directly through the Government of Zimbabwe. We work through multilateral organisations, notably UN agencies, international NGOs and the private sector, to deliver our UK aid projects. Apart from immediate aid, it is important that we also focus on enabling Zimbabweans to help themselves in the longer term on a more sustainable basis. In particular, DfID has two programmes supporting agriculture in that sense, enabling infrastructure to be developed.

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