Categories: Stories

The sanctions debate: myths, exaggeration and denial

The US embassy in Harare says: “Since 1980, the US has provided over $2 billion in assistance to Zimbabwe.  In 2015 alone, our support to Zimbabwe was over $130 million, largely in health, agricultural development, humanitarian assistance, and support for democratic institutions, rule of law and human rights.”

The 2016 national budget shows USAID gave Zimbabwe $64,5 million in development aid between January and September 2015.

The EU’s initial package of sanctions involved a travel ban on 200 ZANU-PF officials. In 2002, the EU suspended budgetary support to Zimbabwe. The decision was made under the 2000 Cotonou Partnership Agreement between the African, Caribbean and Pacific Group of States (ACP) and the EU. Article 9 of the deal provides for “transparent and accountable governance” as a condition for cooperation.

The EU also imposed a freeze on senior ZANU-PF officials’ assets in Europe. No notable assets were ever found or frozen.

Relations between Zimbabwe and the EU continue to thaw, and Europe has gradually rolled back its embargo. Only President Mugabe and First Lady, Grace Mugabe remain on the sanctions list, while a ban on doing business with the Zimbabwe military remains.

While the EU continues to deny Zimbabwe budgetary support, between January and September 2015, EU developmental support stood at $38 million, according to Treasury data. UKAID support was $97 million over the same period.

In 2013, ZANU-PF claimed in its election manifesto that Zimbabwe lost $42 billion due to sanctions.

ZANU-PF estimated Zimbabwe lost donor support amounting to approximately $36 million annually since 2001, $79 million in loans from the International Monetary Fund, the World Bank and African Development Bank, commercial loans of $431 million and GDP reduction of $3.4 billion.

“The negative publicity created an artificially induced negative national image which attracted high-risk premium on alternative sources of offshore lines of credit and killed the tourism market. It also scared away potential creditors and reduced commercial loans by US$431 million per annum during the 200s.

“Furthermore interruption of trade and constraints on manufacturing and general economic activities saw GDP almost halving from US$7.49 billion in 2000 to US$4 billion in 2010,” the manifesto reads.

It is impossible to verify these figures as they are mostly assumptions.

The MDC has often insisted that there are no sanctions on Zimbabwe, preferring to align with the West’s position that these are only “restrictive measures”. The closest the MDC has gone to mentioning sanctions was during the unity government. 

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This post was last modified on July 23, 2016 11:16 am

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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.

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