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EU resumes development aid to Zimbabwe after 13-year break

Xinhua, February 16, 2015 Adjust font size:

The European Union (EU) has resumed direct development aid to Zimbabwe after a 13-year break, with the bloc on Monday signing a 270-million-U.S. dollar grant to support Zimbabwe's socioeconomic programs over the next five years.

The funding under the 11th European Development Fund (2014-2020) marks the first time that the EU is extending development assistance to Zimbabwe since 2002 when the bloc imposed sanctions on the southern African country over political differences.

The provision of the funds comes after the EU lifted its decade- long economic sanctions on Zimbabwe last November.

Speaking at the signing ceremony, EU Ambassador to Zimbabwe Phillippe Van Damme said the funds will be channelled towards health, agriculture and governance sectors.

"We look forward to work in all the strategic and important areas covered by this National Indicative Program, with the aim to foster the political and economic reforms Zimbabwe is undertaking, " Van Damme said.

He said half of the total amount will be committed this year and that a mid-term review of the funding program will be made in 2017, with additional funds likely to be availed if more progress was made.

Finance Minister Patrick Chinamasa thanked the EU for the support and said it marked a major milestone in the normalization of relations between the two.

"The EU support will go a long way in complementing government's efforts in providing an enabling environment for sustainable economic empowerment and social transformation to the people of Zimbabwe," Chinamasa said.

He said Zimbabwe was keen to strengthen its economic ties with the EU, and invited European investors to come and invest in the country currently suffering from low foreign investment.

He also said Zimbabwe wanted the European Investment Bank (EIB) to resume supporting the country's productive sectors after stopping some years back when Zimbabwe failed to service its loans.

The country started making token payments to service its debt with the EIB in January this year, Chinamasa said.

The minister also called on the EU to lift sanctions on President Robert Mugabe and his wife Grace, saying as long as they remained, ties between the two remain "poisoned ad unproductive."

The EU is set for annual review of the sanctions and is expected to announce its position on Feb.20.

Chinamasa also called for resumption of political dialogue between the EU and Zimbabwe so that the two can normalize ties. Endi