The World Bank (WB) is planning to offer a third party to manage COVID-19 relief funds meant for Zimbabwe, it has emerged.
WB has a pending project waiting for approval to offer Zimbabwe US$5 million toward mitigating the effects of COVID-19.
“The Global Financing Facility, a multi-donor trust fund housed at the World Bank, is planning to allocate $5 million for COVID-19 response in Zimbabwe (pending project approval), to be implemented through Cordaid, the Catholic Organization for Relief and Development Aid, rather than the Government of Zimbabwe,” the international funder says in a statement.
“In addition, an estimated $2 million from the ongoing Zimbabwe Idai Recovery Project will be redirected toward the COVID-19 response in the affected communities, implemented through UNOPS, the United Nations Office for Projects and Service.”
Due to arrears, Zimbabwe is not eligible for traditional financing through the International Development Association (IDA) according to WB.
The southern African country’s debt to WB is $1.5 billion, with 86% ($1.3 billion) of the debt in arrears.
“There is no direct IDA or IBRD financing to the government. Support to countries like Zimbabwe that are not current on their debt service can only be provided through trust funds, with allocations managed and programs implemented primarily through our technical assistance programs and local or international partners on the ground.” the WB says.
“The World Bank Group’s shareholders have underlined the need for Zimbabwe and other countries in arrears to receive support as part of the global effort to help countries respond to urgent health needs due to COVID-19, while ensuring that these funds reach the communities that are most at risk from the impacts of the pandemic.”
The latest development comes after Zimbabwe’s billionaire Strive Masiyiwa appealed to international financiers to support Zimbabwe and Sudan in the wake of economic devastation brought about by the COVID-19 pandemic.
Masiyiwa raised concern about the potential loss of life if international aid does not come quickly, especially to address the needs of the pandemic.
“I would like to appeal to the World Bank, IMF and other multilateral institutions, to create humanitarian Trusts for each country, which are managed by third parties, along the lines of the Global Fund,” he had said.
