REPUBLIC OF ZIMBABWE: INTERIM STRATEGY NOTE
                                                                                                77504
                                                               CHAIR’S SUMMING UP

                                                           Meeting of the Executive Directors

                                                                     April 25, 2013



         The Executive Directors considered the joint IDA/IFC/MIGA Interim Strategy Note
(ISN) for the Republic of Zimbabwe for FY13-FY15 (IDA/R2013-0070[IFC/R2013-0085,
MIGA/R2013-0020]). Directors supported the three priority areas identified in the ISN:
(i) fostering private sector-led growth; (ii) strengthening core systems for public sector
management; and (iii) reducing vulnerabilities and strengthening human development. Directors
welcomed the flexible approach reflected in the ISN with reengagement linked to progress on the
government’s reform agenda. They looked forward to the Zimbabwean authorities and the
International Monetary Fund reaching agreement on a Staff-Monitored Program that could
support a comprehensive program of economic reform.

        Directors welcomed the three scenarios set out in the ISN and the ongoing work of the
World Bank Group (WBG) that will lay the foundations for reengagement. Directors broadly
supported the path to ‘enhanced re-engagement.’ Zimbabwe has been in arrears to the World
Bank since October 2000. A majority of Directors strongly supported the development of a
comprehensive arrears clearance framework, with one Director stressing the necessity for
government to pursue substantial reforms to support the related discussions. Directors also
emphasized the importance of adhering to established processes for arrears clearance and debt
relief under the Heavily Indebted Poor Countries Initiative (HIPC) and the Multilateral Debt
Relief Initiative (MDRI).

        Directors noted that Zimbabwe has been on a path of economic recovery, but significant
challenges must be addressed to support a high growth path and substantial poverty reduction.
They underscored the importance of the upcoming elections and a commitment to good
governance, transparency, particularly in public financial management, and a robust investment
climate. They welcomed the focus on sectors such as agriculture, mining, health, education, and
safety nets, as well as the ISN’s emphasis on gender analysis and engagement with civil society
and the private sector.

        Most directors suggested that the full range of WBG instruments be used to assist
Zimbabwe, including an expanded role for IFC and MIGA to enhance private investment flows,
diversify the economy beyond the mining sector, and improve the delivery of basic services.
They also welcomed WBG support as Zimbabwe addresses challenges in improving
transparency of mining revenues, implementing its indigenization policy, and undertaking land
reforms. Finally, Directors recognized the importance of monitoring progress against
development goals during the ISN period and over the longer term. They looked forward to
timely updates to the Board on the WBG’s engagement.
 


                                                            
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    This summary is not an approved record.