THE African Development Bank (AfDB) has expressed concern over the Zimbabwean government’s lack of effective oversight regarding the arrears clearance and governance enhancement programme.
The AfDB provided financial support for the programme by approving a loan of US$3,97 million to the Treasury, of which US$2,13 million (53,74%) has been disbursed to date.
Zimbabwe’s economy is struggling under a massive debt burden of over US$19,2 billion, limiting its access to new credit lines and hindering its ability to fund its ambitious US$40 billion capital expenditure plans.
“Government has to strengthen its oversight through the project steering committee. Recruitment of programme manager and M&E (monitoring and evaluation) specialist are also critical,” AfDB said in a project update under its implementation progress (IP) rating.
However, under the overall project performance, the bank said the project was non-problematic nor was it highly satisfactory either.
“None of the IP level indicators is rated unsatisfactory or highly unsatisfactory for it to qualify to be a potentially problematic project,” AfDB said.
Rating the development objective of the project, the bank said both outcome and output level targets were on track and rated satisfactory.
“Government is urged to remain on track in implementing economic and governance reforms. Zacc (Zimbabwe Anti-Corruption Commission) needs to speed up implementation of its activities,” AfDB added.
- New perspectives: Building capacity of agricultural players in Zim
- I am not scared: AfDb chief shrugs off Africa food crisis
- New perspectives: Building capacity of agricultural players in Zim
- Xenophobic attacks against Zimbabweans barbaric
Keep Reading
A precondition to solving the debt crisis by Zimbabwe’s creditors, or entertaining talk of forgiveness, includes putting forward a comprehensive plan to address the government’s heavy expenditure and weak governance structures.
“The overarching development objective of the project is to support the arrears clearance process, sustainable management of debt and enhance public oversight, thereby contributing to macroeconomic stability and fiscal consolidation,” AfDB said.
The specific objectives of the project are to enhance capacity on arrears clearance and debt management; and strengthen governance and oversight function of government.
The project has three components, namely enhanced capacity on arrears clearance and debt management; strengthened accountability and oversight; and project management.
AfDB added: “Arrears clearance and sustainable debt management are critical for macroeconomic stabilisation and fiscal consolidation while combating corruption and strengthened oversight prerequisites prudent use of public resources and re-engagement with the international community.”
The bank said the enhanced capacity on arrears clearance and debt management sought to support the government’s efforts to clear its arrears with international creditors including the AfDB and management of its public debt.
The bank said strengthened accountability and oversight seeks to enhance accountability and public oversight with a view to strengthen governance and combat corruption.
Sustainable debt management requires strong accountability systems that support sound macroeconomic and public financial management practices.
