IMF concerned at Zimbabwe’s deepening economic crisis

The IMF, at the end of its two-week mission to Harare on Wednesday, voiced concern about the worsening economic crisis in Zimbabwe. “The mission expressed concern about the deepening of Zimbabwe’s economic crisis in recent months as evidenced by the depressed state of economic activity, the scarcities of fuel ... the upward trend in inflation and the build up of large external payments arrears,” an IMF statement said on Wednesday.

The international lender did not make any reference to the resumption of aid to Zimbabwe. It said, however, that it would remain in contact with Zimbabwean authorities regarding progress in various policy areas and “the prospects for eventual IMF support for government’s adjustment efforts”. An IMF team led by the fund’s assistant director for Africa, Paulo Neuhaus, was in Zimbabwe from 7 March until Tuesday for talks with the government on key macro-economic issues.

The team made recommendations to address the economic crisis and stressed the importance of an orderly land reform scheme which should be supported both at home and abroad. The IMF suspended aid to Zimbabwe in 1999 after its reforms to liberalise the economy veered off track, prompting most other lenders to pull out, leaving the country with little credit and practically no foreign currency.