WAR AGAINST SANCTIONS YIELDS GOOD RESULTS

BY DR MASIMBA MAVAZA

The United States is considering repealing the Zimbabwe Democracy and Economic Recovery Act (ZIDERA), a sanctions law passed in 2001 that has long been the source of the country’s economic struggles.

The proposed repeal is part of a broader shift in US policy towards Africa, driven by competition with China for influence and China’s growing presence on the continent.

Key Aspects of ZIDERA’s Repeal and their implications strike a positive mark on Zimbabwe’s economy.

The repeal of ZIDERA has positive Economic Implications.

Repealing ZIDERA could unlock funding from international financial institutions like the IMF and World Bank, contingent on Zimbabwe clearing past arrears.

Zanu PF’s Stance against sanctions has been persistently forceful. Zanu PF has campaigned for ZIDERA’s repeal for over 15 years, with leaders like President Emmerson Mnangagwa declaring a holiday to push for its removal.

The whole of SADC stood with Zimbabwe against Sanctions. Under the unceasing fire from Zimbabwe, the USA has now seen the light and is considering removing Zidera.

The US is reportedly recalibrating its Africa policy amid competition for Africa’s critical minerals, like rare earth elements essential for technology.

During the time the USA was throwing its tantrum, China took advantage and closed the gap.

China has significant investments and agreements in Africa, positioning itself against US interests.

Many people have attributed Zimbabwe’s economic challenges to sanctions, though critics argue internal factors like corruption and poor governance play significant roles.

Vice President Constantino Chiwenga claimed Zimbabwe lost over $150 billion due to sanctions; however, the figure could be ten times higher.

The party faces internal conflicts and factional struggles, impacting governance and stability, but throughout all this, the party remained focused, and indeed, it has been rewarded.

We need to consider Geopolitical Considerations.

Africa’s Mineral Wealth has made it difficult for Americans to maintain sanctions.

Africa’s critical minerals are central to economic and strategic competition between the US and China.

The US appears to be moving towards alternative engagement approaches with Zimbabwe.

Repealing the Zimbabwe Democracy and Economic Recovery Act (ZIDERA) could have significant implications for Zimbabwe’s economy.

Economic Benefits- Access to International Financing.

ZIDERA’s repeal might allow Zimbabwe to access credit lines from international financial institutions like the IMF, World Bank, and African Development Bank, which have been restricted due to the act.

Debt RestructuringClearing past arrears could pave the way for debt restructuring, potentially easing Zimbabwe’s debt burden.

Increased Investment: Removing sanctions could attract private investors and encourage international banks to lend to Zimbabwe, reducing the country’s economic isolation.

Trade and Economic Growth

Expanded Trade Opportunities: ZIDERA’s repeal might boost trade between Zimbabwe and the US, with potential benefits for Zimbabwe’s export sector, including minerals and agricultural products.

Economic Diversificatio: Access to international markets and financing could support economic diversification and growth.

-Selective Sanctions: While some sanctions have been lifted, key figures like President Emmerson Mnangagwa remain on sanctions lists, indicating ongoing complexities.

– Global Magnitsky Sanctions: Some Zimbabwean individuals and entities are now under the Global Magnitsky Sanctions program, reflecting continued US concerns

Perspectives

Industry leaders and economic analysts argue that ZIDERA’s removal is crucial for Zimbabwe’s economic progress, citing its impact on accessing financing and investment.

However, others note that Zimbabwe’s debt crisis and internal governance issues are significant hurdles.