Zimbabwe reconstruction to cost $1 billion a year (04/04/08)

 

Zimbabwe needs more than $1 billion a year in reconstruction aid and Britain is working with the United States, European Union, World Bank and IMF on a recovery plan, a government source said.

 
 
Once prosperous Zimbabwe has suffered economic collapse under President Robert Mugabe, who faces the biggest crisis of his 28-year rule after a strong showing by the opposition in last Saturday's election.

Former colonial ruler Britain has said it is ready to help Zimbabwe if it judges the country has returned to democracy.


"We are working with the World Bank and other donors in preparing to support recovery as soon as positive political change comes," a spokesman for Britain's Department for International Development said.

In the event of "continued decline", Britain was also involved in "contingency planning for a worsening humanitarian crisis", he said.

British experts estimate Zimbabwe will need three times the $350 million a year in international aid that currently flows to the country to help it get back on its feet after years of economic decline, the source said.

That means it would need more than $1 billion a year in international aid for "at least a few years", he said.

"We've been working together with the EU, U.S., World Bank and IMF to see how we can help," he added.

Zimbabwe's opposition Movement for Democratic Change won the parliamentary election but no results have yet been released for the presidential vote. Zimbabwe's ruling party expects a runoff election and is confident Mugabe will retain power, Deputy Information Minister Bright Matonga said.

Source: Reuters

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