World Bank to give Zimbabwe $22m grant

The World Bank will soon make its first grant to Zimbabwe since the country’s politicians agreed to a power-sharing deal, but said on Monday it would provide loans only after arrears were cleared.

Toga Gayewea McIntosh, the World Bank’s executive director for Africa’s Group Ome, which includes Zimbabwe, said the $22-million grant should be available in the next few weeks and that small grants would be offered for now.

McIntosh was speaking after meeting Prime Minister Morgan Tsvangirai and Finance Minister Tendai Biti.

Zimbabwe will depend heavily on international financial support to rebuild its shattered economy, and strong ties with the World Bank and International Monetary Fund are vital.

“There are conditions to re-engagement with the Bank, you have to do a lot of things, such as the clearance of arrears,” McIntosh said.

The unity government has appealed for $8,3-billion in financial aid to fix Zimbabwe’s economy, after years of hyperinflation and contraction.—Reuters