Zimbabwe has made progress despite adverse environment, British Minister says

A British Minister told the House of Lords that Zimbabwe has made some good progress towards economic reforms according to the International Monetary Fund but the IMF’s assessment did not cover political reforms.

Zimbabwe has been under siege over the past few weeks with activists calling on President Robert Mugabe to step down because he has failed to turn around the country’s fortunes.

The activists have given Mugabe until the end of this month to step down.

Home Affairs Minister Ignatius Chombo who is also the Zimbabwe African National Union-Patriotic Front secretary for Administration, however, said Mugabe had to reason to step down because he has a mandate to fulfill until the end of his term in 2018.

Responding to a question from Lord Oates on what policies or actions Zimbabwe has made since its assessment by the IMF in May, Baroness Anelay of St Johns said Zimbabwe has reduced its fiscal deficits in 2014 and 2015.

It had also started rationalising the civil service and was amending the Public Finance Management and Procurement acts.

“The Reserve Bank of Zimbabwe has taken measures to restore confidence in the financial sector. All banks in operations now have capital buffers above the minimum requirements,” she said.

“The IMF assessment did not cover political reform,” she added.

Q & A:

Lord Oates Liberal Democrat–    To ask Her Majesty’s Government, further to the Written Answer by Baroness Anelay of St Johns on 14 July (HL1012) in which they stated that the IMF "noted Zimbabwe's good progress and encouraged further reforms", what policies or actions they classify as examples of Zimbabwe's good progress on either economic or political reform.

Baroness Anelay of St Johns Minister of State, Deputy Speaker (Lords), The Minister of State, Department for International Development- Following its May 2016 Article IV Consultation with Zimbabwe, the International Monetary Fund (IMF) noted that “despite the adverse environment, the authorities have reduced the fiscal deficit in both 2014 and 2015. They have started to rationalise public expenditures by implementing recommendations from the 2015 civil service audit. They are also amending the Public Financial Management and Procurement Acts. The Reserve Bank of Zimbabwe has taken measures to restore confidence in the financial sector. All banks in operations now have capital buffers above the minimum requirements”. The IMF assessment did not cover political reform.

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