Biti says donors unlikely to help Zimbabwe

By Lance Guma
12 March 2010

Finance Minister Tendai Biti provided a dose of reality on Thursday when he admitted that it is unlikely foreign donors will chip in to help the country finance a projected US$810 million budget deficit. Key western donors are reluctant to pour money into the shaky coalition government, and the continued rights abuses and the controversial indigenization law have not helped matters.

This week Biti disbursed US$100 million to different government ministries, from the US$510 million provided by the International Monetary Fund last year. The money was shared between ministries that are responsible for water, sanitation, road construction and power generation. Last year US$50 million of the same IMF money was spent on seed and fertilizer.

‘Given that this money has to be repaid at a later stage, it is critical that utilization be targeted at projects that will generate economic activity and give returns to the country,’ Biti said.

It’s the impact of ZANU PF’s reluctance to genuinely share power however that is being felt the most, as foreign donors hold back on funding. Biti said Zimbabwe would have to use its own resources to try and revive its economy. ‘It's very unlikely that donors will fill that $810 million gap - we're on our own.’