Donors pledge massive US $1.3billion in aid

Western donors this week shrugged off lingering concerns over the conduct of controversial general elections, held last December, to pledge a record US $1.3 billion in aid to Zambia this year. World Bank Regional Director for Zambia and Zimbabwe, Yaw Ansu, said the aid pledges – a marked increase over last year's US $900 million - were partly in response to government initiatives to curb corruption and widespread poverty, and to conclude a far-reaching privatisation programme that has seen the transfer of around 80 percent of the economy to private hands. Ansu said donors also welcomed government efforts to address widespread poverty through its Poverty Reduction Strategy Paper (PRSP), which was endorsed by both the World Bank and the International Monetary Fund (IMF) recently. The government of President Levy Mwanawasa has also undertaken to conclude the concessioning of the country's only power utility and railway companies, and the privatisation of the loss-making Zambia National Commercial Bank. Zambia could also be eligible for more aid if it makes progress towards meeting the Highly Indebted Poor Countries (HIPC) initiative completion point next year. France, for example, would write-off all of Zambia's outstanding debt. "In total, France's effort should amount to 115 million euro (US $113.7 million) in favour of Zambia, [as the country] will not be required to make any more payment on the debt. [This] ... will enable Zambia to allocate more resources for poverty reduction," French ambassador Jean-Paul Monchau told reporters. Finance Minister Emmanuel Kasonde said the donor aid pledges exceeded his expectations: "They [the donors] have more than contributed to the gap [in the budget] and it means I can now go full swing and implement our policies." Some political observers had anticipated cuts in aid in response to donor concerns over the conduct of the December elections. The European Union and the United States, as well as some prominent local observer groups, declared the elections flawed. Concerns over the conduct of the polls also saw three opposition parties legally challenge the results. The hearings into the electoral petitions, of the United Party for National Development, Forum for Democracy and Development and Heritage Party, continue. Five years ago, donors cut balance of payment support after the government, of former president Frederick Chiluba, changed the electoral laws to ban former president Kenneth Kaunda from standing as a candidate. However, the government is said to have assured western diplomats of its commitment to designing a better electoral system. Donor sentiment was also moved by a growing humanitarian crisis in the impoverished nation, where an estimated 2.3 million people face starvation. Like its neighbours in the region, Zambia is also battling the HIV/AIDS epidemic. While civil society has long advocated debt write-offs and more donor support for poverty reduction, its leaders suggested that the donors should have been more demanding of the government before making the aid pledges. In particular, they said, donors should have demanded more action on high-level corruption. "The international community should state clearly if it is willing to help Zambia get her stolen resources back," said Jackson Katete of the Anglican Church. Ngande Mwanajiti, the head of the Inter-African Network for Human Rights and Development (Afronet) echoed Katete's words: "We need an indication that there is a will on the part of the international community on this."