By Evans Dakwa
Zimbabwe is pinning its hope on traditional allies to support Harare’s application to join the BRIC’s New Development Bank, (NDB).
Speaking the visiting Brazilian delegation attending the political consultation meetings between the two countries, Foreign Affairs and International Trade Minister, Frederick Shava, said the Bank is crucial to the development aspirations of the Southern African Nation and help in repaying it’s loans to various lenders.
“I also hope that Brazil will support Zimbabwe’s application for membership in the New Development Bank (NDB). Joining the bank would provide Zimbabwe with an alternative source of finances while creating a new channel for payments towards the More Food International Programme arrears,” said Ambassador Shava.
The New Development Bank, formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states. According to the Agreement on the NDB, “the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.”
Minister Shava expressed regret over Harare’s failure to repay it’s loans stemming from various support program support it has received from the South American agricultural giant, blaming the economic sanctions imposed on Zimbabwe.
” I regret that there have been hiccups in repayments for the loan and interest for the equipment supplied to Zimbabwe. This was due to complications associated with sanctions imposed on Zimbabwe by the United States of America. An attempt by AFC Commercial Bank to remit funds in January 2023 did not succeed, as the funds were returned by the United States intermediary bank citing their Internal Compliance policy.”
He assured his Brazilian colleagues that the responsible authorities are working to clear the arrears
“My Government hopes that the Second Tranche of the More Food International Programme will be approved by Brazil as soon as we resume servicing the First Tranche loan, “he added
Zimbabwe has been receiving support from Brazil especially in agricultural facets like technical support for cotton production, cattle farming, and pasture management, areas in which Brazil is a global competitor. The country also benefitted from an agricultural mechanisation deal whose loan has since been assumed by the RBZ.