Categories: Stories

IMF plays into ZANU-PF’s hands

The International Monetary Fund’s postponement of a decision on Zimbabwe’s compulsory withdrawal played into the hands of the Zimbabwean government because it was portrayed in the government-owned media as a vote of confidence in the country’s home-grown economic turnaround efforts.

The government was also using the “economic turnaround” as a plank in its 2005 parliamentary election campaign.

 

Full cable:


Viewing cable 05HARARE261, GOZ PORTRAYS IMF DECISION AS “REPRIEVE”

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Reference ID

Created

Released

Classification

Origin

05HARARE261

2005-02-18 09:47

2011-08-30 01:44

CONFIDENTIAL

Embassy Harare

This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L HARARE 000261

 

SIPDIS

 

C O R R E C T E D C O P Y – RECLASS PARA 1,2 AND ADDEES

 

STATE FOR AF/S

USDOC FOR ROBERT TELCHIN

TREASURY FOR OREN WYCHE-SHAW

PASS USTR FLORIZELLE LISER

STATE PASS USAID FOR MARJORIE COPSON

 

E.O. 12958: DECL: 12/13/2014

TAGS: EFIN ETRD PGOV ECON EINV ZI

SUBJECT: GOZ PORTRAYS IMF DECISION AS “REPRIEVE”

 

Classified By: Classified by Ambassador Christopher Dell

under Section 1.4 e/g

 

1. (U) In its lead story on February 18, the GOZ,s daily

Herald newspaper characterized the International Monetary

Fund (IMF),s postponement of a decision on Zimbabwe,s

compulsory withdrawal as “reflect(ing) a vote of confidence

in the country,s home-grown economic turnaround efforts.”

The Herald quoted Reserve Bank Governor Gideon Gono,s as

stating that “we are obviously happy with the outcome.”

 

2. (U) The Herald recalled that Zimbabwe had increased its

arrears payments to the Fund during 2004, reaching US$ 5

million in the last quarter. The article asserted further

that relations between Zimbabwe and the IMF had “thawed over

the past year,” citing IMF Africa Director Abdoulaye

Bio-Tchane,s visit to Zimbabwe in November “as a step

forward in mending relations.” The Herald story did not name

the U.S., U.K. and Canada as opponents of the extension.

 

3. (C) Comment: The GOZ has seized upon the “economic

turnaround” as a plank in its parliamentary election

campaign. In that regard, the IMF decision plays into their

hands.

DELL

(39 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024