Implement substantive reforms, Paris Club creditors tell Zimbabwe

HARARE (Reuters) – Zimbabwe should implement sustainable political and economic reforms and successfully complete an IMF monitoring programme in order to normalise ties with international lenders, the Paris Club of creditor nations said in a letter seen by Reuters.

Finance Minister Mthuli Ncube in April wrote to the International Monetary Fund, World Bank, Paris Club and African Development Bank seeking high-level talks to improve relations with the creditors. He warned that without their help, Zimbabwe faced a catastrophe.

But the Paris Club insisted that President Emmerson Mnangagwa’s government should first implement “substantive and sustainable political and economic reforms, in particular regarding respect for human rights, especially freedoms of assembly and expression”.

Odile Renaud-Basso, a senior French treasury official who signed the June 12 letter, said a poor performance by Zimbabwe during an IMF staff programme that ended early this year was a missed opportunity to impress creditors.

Harare has admitted to policy missteps during the programme. Ncube did not respond to questions on his mobile phone on Tuesday.

“We encourage you to press forward with a credible reform programme to stabilise the economy and strengthen economic governance,” the Paris Club letter said.

The French treasury declined to comment on the letter.

Schwan Badirou Gafari, Paris Club secretary general, did not immediately respond to a request for comment.

Zimbabwe will also have to clear more than $2 billion in arrears with the World Bank and African Development Bank to benefit from any debt restructuring from the creditors, their letter said.

Hopes of an economic rebound after the departure of Robert Mugabe in 2017 has turned to despair as inflation soars to nearly 800% amid unemployment above 80%.

Citizens fear the country is returning to the economic horrors of 2008 when Zimbabwe was forced to dump its currency, wrecked by hyperinflation. Workers are agitating for U.S. dollar salaries to protect their earnings and savings.

Partner Content

Mauritius-Africa, a partnership for shared prosperity

By: Mathieu Mandeng In the current complex and challenging circumstances that are testing the...


The City of eThekwini pulled out all stops to give fans of the annual Vodacom Durban July (VDJ). The Virtual Vodacom Durban...

GAUTRAIN – Why It Matters

Economic growth continues to be one of the focus areas for the Gauteng Provincial Government (GPG) and the Gautrain responds to that...

Tata International concludes a securitization transaction for its African Subsidiaries

UAE financial centers act as a gateway to benefit African businesses GCC, July 13th, 2020: Tata International Limited (TIL)...

Trending Now

Tech giants report strong earnings

The big four tech giants, worth nearly $5 trillion reported earnings last week defying the worst economic downturns on record. Joining CNBC Africa for more on the numbers is Henry Biddlecombe, Analyst at Anchor Capital.

Human trial for COVID-19 vaccine launched by Johnson & Johnson

Johnson & Johnson has confirmed that a human trial for a COVID-19 vaccine has begun in the United States and Belgium after positive results were seen in its study with monkeys.

SAVE CEO on the benefits of open banking amid COVID-19

COVID-19 has in a way increased the uptake of open banking solutions and with many consumers starting to use mediums such as services provided by fintechs, could this affect your banking choices, CNBC Africa spoke to the CEO and Founder of SAVE, Shema Steve for more.

Kenya’s domestic borrowings up in July amid COVID-19 response

Almost record monthly figures in regards to the Kenyan government borrowing marked the first month of the new fiscal year collecting over $2 billion through bills and Treasury bonds, but what does this mean if anything for the fiscal direction of Kenya, Callstreet Research Director, George Bodo spoke to CNBC Africa for more.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

- Advertisement -