"I have
had a fruitful visit to Zimbabwe these past few days and I want
to thank my hosts, Acting Minister Murerwa and Reserve Bank Governor
Gono, for a warm welcome and for the quality of our discussions.
I also had meetings with several senior officials including the
Minister of Special Affairs, Mr. Nkomo, as well as with the ambassadors
of several donor countries.
"Yesterday,
I had the privilege of meeting His Excellency President Mugabe.
My meeting was intended to provide an opportunity for me to explain
personally to the President the state of Zimbabwe's relations
with the IMF—which are now at a critical juncture—and
how we could establish a positive framework for moving forward.
Our discussions were informative and cordial and covered a number
of issues.
"The
President reassured me that Zimbabwe was prepared to have a meaningful
relationship with the IMF, even if he did not always agree with
its economic advice. He stressed that Zimbabwe needed to grow
and prosper as a sovereign nation. In this regard, noting the
country's rich agricultural and mining resources, he observed
that, with land reform now largely completed, these sectors—particularly
mining—needed more investment. He also emphasized that Zimbabwe's
prospects were enhanced by the skill level of its workforce, which
was the result of substantial public investment in education since
independence.
"My discussions
with the Zimbabwean authorities covered a range of economic and
structural issues facing the country today. I explained that the
Fund wanted to work with the authorities to help Zimbabwe achieve
its full potential and to integrate the country more closely with
the international community. In order for the IMF to help Zimbabwe,
the authorities need to seize this window of opportunity to demonstrate
strengthened cooperation with the Fund before its Executive Board
next considers the issue of Zimbabwe's compulsory withdrawal.
I reiterated
that strengthened cooperation could be demonstrated through:
- A comprehensive
policy package comprising rapid macrostabilization, substantive
structural reforms, and a strengthening of governance to lay
the basis for a significant improvement in investor confidence;
- Concerted
efforts to rebuild relations with other official creditors,
which over time will also lead to the external financing needed
to ensure these policies are sustainable; and
- A significant
increase in payments to the Fund in line with Zimbabwe's payments
capacity. Such an increase should be possible without undue
import compression and hardship to the Zimbabwean people if
a comprehensive policy package supported by external financing
is adopted.
"I hope
that in the period ahead, the Zimbabwean authorities can work
more closely with us as they implement a comprehensive policy
package to improve the welfare of the Zimbabwean people and to
strengthen cooperation with the IMF."
