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Johannesburg — ZIMBABWE, which is looking for $10bn to finance its economic recovery plan and urgently needs $2bn of that sum, has to date secured only $400m from African states.
The Southern African Development Community (SADC) had undertaken to raise the $2bn by now, with SA and Botswana pledging credit lines and budget support of $800m and $70m respectively.
The funding to date, which includes $200m from SADC and another $200m from the Common Market for Eastern and Southern Africa, is intended to meet urgent working capital requirements for local companies, but is a drop in the ocean of need.
Industry and Commerce Minister Welshman Ncube has said African countries had committed to providing the credit lines to companies in Zimbabwe.
SADC's self-imposed deadline to raise $2bn in emergency funding for Zimbabwe, which was decided on at a recent summit in Swaziland, expired two weeks ago.
Most states involved say they need more time to consult.
Western donors, including from the US and the European Union (EU), were expected to contribute the bulk of the $10bn for reconstruction and investment, but have so far declined, citing a lack of progress in urgent political and economic reforms. Donors are insisting benchmarks be met before helping Zimbabwe. They include the restoration of the rule of law, property rights, human rights and broad democratic changes.
They fear if money is given directly to the government while President Robert Mugabe rules it could disappear.
Zimbabwean Finance Minister Tendai Biti was in Washington for key meetings of the International Monetary Fund (IMF) and World Bank at the weekend, but was unable to secure funds because of concerns over lack of reforms and the numerous financial restrictions imposed on Harare.
The IMF said Harare first needed to clear its arrears and implement measures that would end sanctions if it wanted assistance. But Zimbabwe cannot pay any of its debts without such assistance.
Biti is heading to Europe to lobby for funding but is likely to be rebuffed in London.
Donors have cited continuing farm invasions, the arrest and prosecution of farmers, detention of political activists, political disputes between Mugabe and Prime Minister Morgan Tsvangirai , and a lack of significant change in the economic and political environment as reasons for refusing to release funds.
Donors have proposed stop-gap help via the World Bank's Multi Donor Trust Fund and the United Nations until relations between Harare and the world thaw.
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Well thats to be expected. Why does Zimbabwe need to get out the begging bowl? When Mugabe took over Zimbabwe it didnt need a begging bowl. So much for the racist apartheid regime of Ian Smith. Even when Zimbabwe had FULL sanctions on it as Rhodesia it still had petrol, a health care system and the country ran well. By our actions we admit we failed as a nation. Ian Smith must be laughing in his grave for he was right. We truely dont know how to govern our country. I also note that our brothers over the borders have plenty to say in support of Mugabe but when it comes to putting their money where it fits it is far short of their support for Mugabe. But thats Africa big words, big plans, but little action and little work.
Investments will surely be flowing in again after criminal Mugabe takes the back seat in the GNU. otherwise, it would be very hard for Tsvangirai to convince donors to contribute in the absence of proper mechanisms to ensure money is spent judiciously.
Had Mugabe be a "patriot" and "a hero", he would have stepped down a long time ago in the higher interest of the nation.
Who said this tyrant devil Mugabe was either a hero or a patriot?
He loves Dollars and power. He will continue to kill, maim and rape just to retain his Dollars and illegitimate power!
All what needs to be done is that all the stolen billions in the ZanuPooF coffers need to be siezed by the state, all that cash could rebuild the country about 5 times over.
This whole article is so stupid and foolish. You really expect Zimbabwe within months to raise one billion? Are you out of your mind? This is very typical of people who have joined an industry of always going to the most hyperbolic things to write about Zimbabwe. Majority of US Zimbabweans do not believe that money will be raised so soon. But aha...Jonathan Muleya and SW radio feel everything has to be done now?? You must be crazy. There is hope in Zimbabwe, given the $400 million raised so far. Most of us think this will be in increments. The GNU is still having problems, and it is expected that more money will come in only when thinks start to move in the right direction. Some of you who wish Zimbabwe would fail are beginning to panic and have started overblowing expectations in Zimbabwe. It is also a miracle that Fellow Africans have raised money for Zimbabwe. It is wonderful, because we know they care. That is progress, not hyped up false expectations, entirely based on false assumption. IGIVE THIS ARTICLE AN "F" FOR TALKING RUBBISH!!!