The bank yesterday approved grants worth a total of $53.4m in a bid to help Zimbabwe recover from the effects of a decade of economic decline. These will support five projects, one of which focuses on improving transparency and effectiveness in public finance and economic management.

Backed by $8m, the governance and institutional strengthening project for public finance will boost accountability and transparency as well as strengthening public procurement practices and improving audit in mineral resource development.

The bank said: ‘All these tasks are considered as critical for improving governance and tackling corruption in Zimbabwe.’  

Zimbabwe’s ten years of economic decline ran until 2009 and was characterised by hyperinflation, shortages, and a severe ‘brain drain’. Consequently, Zimbabwe suffered from poor basic service delivery, weak public sector governance and financial management as well as a lack of capacity in public institutions to deliver core functions. 

The four remaining AfDB projects will focus on youth, tourism, water and sanitation, and transportation and emergency power.

Earlier this month, the International Monetary Fund extended Zimbabwe’s Staff Monitored Programme to allow time for the national authorities to strengthen their policies and pursue economic reforms. The SMP is the first agreement between Zimbabwe and the IMF in more than a decade and focuses on putting the country’s public finances on a sustainable course.