We Are Giving Grants To Zim, We Will Resume Loans Once Arrears Are Cleared: AfDB

The African Development Bank (AfDB) has said that it has not suspended financing to Zimbabwe. The AfDB said that it will give out grants and only resume loans when Zimbabwe clears its arrears of US$600 million. In an interview with The Zimbabwe Independent, AfDB country manager Damoni Kitabire said,

Let us get this right again; it is true Zimbabwe is in arrears to the AfDB. Since Zimbabwe is in arrears, there are certain things we cannot do. For example, we are not giving loans but we are giving grants. Right now we have an ongoing portfolio of about US$223 million in grants that we are implementing in Zimbabwe in various sectors. We have activities in energy; we have activities in water development in Bulawayo. We have activities supporting governance. The studies that Zeparu is undertaking, we are actually financing that. We are not lending because Zimbabwe is still in arrears. We have suspended loans, but we are giving out grants…Right now there is no suspension of financing, we are giving grants. Once the arrears are done we will resume the loans. Now there are a whole lot of things that need to be done. Things we want to see include macroeconomic stability, the financial system—fiscal consolidation.

The AfDB has also pledged US$50 million in loans for the private sector.