Netherlands cancels US $15 million aid programme

The Netherlands has cancelled a US $15 million aid programme to Zimbabwe citing concerns over governance and macroeconomic performance.

A statement from the Dutch embassy in Harare said on Wednesday that the decision was part of a larger restructuring process that was taking place in the Netherlands concerning bilateral aid. It said that there had been "major policy changes in Dutch development cooperation." It added: "Dutch bilateral assistance of a structural/ long-term nature will be concentrated on a limited number of countries."

The statement said that there had been growing international consensus that the effectiveness of aid was closely connected to the policy environments of the recipient countries. "As a consequence of these policy changes, the Dutch government will substantially alter its bilateral development cooperation with Zimbabwe. Although Zimbabwe meets the poverty criterion, concern was raised over the prevailing governance situation as well as its macroeconomic performance."

It added that the existing bilateral program would be phased out
gradually over a period of three years and that all outstanding
commitment would be honoured. "The Netherlands will continue to
contribute to Zimbabwe's peaceful development. The emphasis, however, will be on assistance channelled through multilateral agencies and non-governmental organisations," the statement said.

The Dutch announcement comes just two weeks after Italy announced that it was suspending a US $22 million aid program to Zimbabwe because of a lack of transparency in the way that tenders were awarded.