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The Digit: US$5 billion required to rebuild Zimbabwe's economy
Harare Tribune
September 24, 2008

View article on the Harare Tribune website

Zimbabwe needs about US$5 billion in foreign aid over five years to re-build its shattered economy, the United Nations Development Programme (UNDP) has said in a report.

The report, compiled after the country's leaders signed a power-sharing deal involving the government and opposition two weeks ago, said US$1.6 billion of the financial aid would be needed immediately to plug financing gaps.

It said Zimbabwe, whose economy has fallen by halve in the last 10 years, would also require debt write-offs as part of international donor aid.

"Without substantial foreign assistance, sustainable economic recovery will be impossible," the UNDP report said.

"The manner in which Zimbabwe tackles structural problems at the outset could determine whether it becomes aid-dependent or able, in the long term, to sustain its development," it added.

Mismanagement, including failed agrarian policies pursued by the government in the last 10 years, has led to an unprecedented economic downturn in Zimbabwe.

Inflation is at a world record high of more than 11 million percent, accompanied by widespread shortages of food and other basic commodities.

An estimated four million people are facing hunger, and require food hand-outs from international donors.

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