KEY POINTS
- President Mnangagwa is seeking $5.8 billion in aid at the UN General Assembly to address Zimbabwe’s economic crisis.
- SADC supports Mnangagwa’s appeal, recognizing the importance of Zimbabwe’s recovery for regional stability.
- Despite international concerns over governance, there is cautious optimism for Zimbabwe’s economic future with sustained global support.
Zimbabwe’s President Emmerson Mnangagwa is now begging for aid from the international community, as he is in New York attending the 78th United Nations General Assembly, seeking $ 5.8 billion.
The funds are expected to alleviate the economic problems that have characterized Zimbabwe including hyperinflation, debts and high unemployment levels.
This latest plea comes at time when Zimbabwe remains under increasing pressure to revive a struggling economy.
The fiscal situation in the country has deteriorated further despite efforts at trying to implement reforms such as the recent adoption of the Zimbabwean dollar in 2019 and the recent talks with the creditors.
However, these maneuvers have not helped to reduce the burden on this southern African nation.
A crippling economic crisis
The current economic crisis in Zimbabwe has precipitated high inflation rates, fuel scarcity and power blackouts.
The World Bank has acknowledged high inflation rates in Zimbabwe, which are among the highest in the world, thereby making it hard for its people to survive.
During his speech at the United Nations, Mnangagwa highlighted the country’s need for funds especially for projects that include infrastructure, energy and health. “Zimbabwe cannot address these challenges on its own,” said Mnangagwa as he called on multilateral bodies and donor countries.
New Zimbabwe also confirms that SADC is supporting Mnangagwa’s appeal, which the organization knows Zimbabwe’s economic revival is crucial to the region’s stability.
SADC support and other objectives
The Southern African Development Community has endorsed the Zimbabwean government especially in its efforts to offload its foreign debts that currently stand at 17 billion US dollars.
This support from SADC seems to be due to fears that if the situation in Zimbabwe persists, the whole region will be affected. Other SADC countries are observing the situation as they also suffered problems related to Zimbabwe’s financial crisis in trade and movement of people.
The appeal for assistance is made at the UN General Assembly at a time Mnangagwa is seeking to balance on the one hand the need for international assistance to bolster his fragile economy while on the other implementing measures to kick start the reformed economy.
In his administration, he has made promises on fighting corruption and attracting investors but this area has been a bit lagging.
International response
It is still unclear how the global community will respond to Mnangagwa’s plea for funding. However, the IMF, World Bank and other international donors are aware of the position of Zimbabwe’s economy but they have been slow to offer large sums of money as aid without expecting good governance.
This was the same to that different but earlier where the government of Zimbabwe was accused of embezzling the previous financial aid. This has led the potential donors to doubt on efficacy of future aid delivery.
A glimmer of hope?
However there is hope and possibility to change the economical misfortune of Zimbabwe if the country will receive a constant support and if Zimbabwe’s leadership will enhance.
Mnangagwa’s attendance at the UN General Assembly has a potential of opening new doors for foreign investors to pour in fresh capital into the key growth sectors such as agriculture and mining.
This is the position as and when Zimbabwe tries to look for capital from the rest of world to cater for its needs in the future fiscals.
They however suggest that perhaps these positive changes are yet to begin should the country implement the right reforms and get to work with the international community.
