The Sunday News
Dalphine Tagwireyi
ZIMBABWE is set to receive €234 million under the 11th European Development Fund Programming and bridging facility under the African, Caribbean and Pacific Group of states (ACP) which will be mainly focused on governance, agriculture and health, running from 2015-2020.
European Union Ambassador to Zimbabwe Mr Phillippe Van Damme made this announcement at a Zimbabwe National Chamber of Commerce (ZNCC) dialogue with the Bulawayo business community on Wednesday.
The announcement by Ambassador Van Damme is a positive step as it comes at a time when the EU on 1 November announced the lifting of trade sanctions against Zimbabwe which were effected in 2002 and this means that the 28-nation bloc would directly engage with Zimbabwe on bilateral economic ties.
This re-engagement with Government is meant to enhance the effectiveness of EU aid in Zimbabwe and the EU’s decision comes as a major boost to government that is pursuing an aggressive world re-engagement to raise capital to fund Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) projects.
The funds are centred on the objective of reducing and eventually eradicating poverty, consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the world economy.
“These sectors have been chosen in consultation with the Government and they will be focused on country priorities as these have been identified for reform, hence the funds will be channelled towards them; we are engaging with Government in the development of finance co-operation,” said Ambassador Van Damme.
Ambassador Van Damme said that in governance there was a need for economic and political reform as the funds would assist the Government in implementing various projects that need reformation.
He said that the agricultural sector was a huge benefactor of the Zimbabwe economy hence the funds would be focused on rebuilding commercial farming so that it is vibrant and upscale food security so that the value chain moves up.
However, he said that there was a need for trust to be rebuilt between Zimbabwe and the EU.
Meanwhile, the EU would in the first quarter of 2015 open an information centre in conjunction with the government of Zimbabwe to allow ease and dissemination of information between the two parties.
The programme is meant to contribute to poverty reduction and sustainable development through the promotion of an enabling environment for creativity, cooperation and exchanges, independence and viability of the cultural sector in the ACP States, as well as the safeguarding of cultural diversity and fundamental cultural values.
Ambassador Van Damme said that tariffs on export goods from Zimbabwe were free in a measure meant to encourage local business people to market their wares to the European market.
“With the 2015 budget reflecting that 81 percent of coffers will be channelled towards wages, there is a need for resuscitation of the Zimbabwean economy slowly to attract investors,” he said. EU’s decision will see financial support being channelled through government as opposed to the status quo where financial aid was coming through non-governmental organisations (NGOs).
