Other observers intimate that the impact of Brexit could also be fuelling the new romance between London and Harare, as the former seeks new markets.
Robert Besseling, director of Exx-Africa, a business intelligence firm, said that on the back of Brexit, the UK government, it seemed, was placing trade interests above payment of arrears in its fast improving relationship with Zimbabwe.
“The UK’s stance diverges from the position of the International Monetary Fund and some European Union countries, like Germany, which insist that any new loans would need to be contingent on settling $9.4 billion in arrears. The IMF has also called on public payroll cuts and phasing out of agricultural subsidies. Those opposed to the UK’s policy of rapprochement believe that Zimbabwe’s government is unlikely to fully implement political and economic reforms if it is offered debt write-offs too early,” said Besseling.
“Zimbabwe is becoming a hot topic at international investor conferences across Europe. At a recent export finance event in Prague, investors showed fresh interest to re-engage with Zimbabwe, although the importance of the arrears clearance remains a key condition for European countries, whereas the UK government seems more willing to write off such debts.”
Last month, UK development finance institution, CDC Group and Standard Chartered agreed to lend up to $100 million to growing businesses in Zimbabwe.
The five-year facility will see CDC and Standard Chartered share the default risk on new loans originated by Standard Chartered Bank Zimbabwe. – The Sunday Times
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This post was last modified on June 12, 2018 12:07 pm
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How can ED say" coming together to little Zimbabwe in Southern Africa"? We need Chamisa who sees Great Zimbabwe in Zimbabwe.not crocodile that sees little Zimbabwe