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V. AID FOR TRADE 
(1) OVERVIEW  
1. The authorities acknowledge that Zimbabwe has not  yet reached a stage where it can generate 
sufficient resources to meet all its development chal lenges.  Hence bilateral and multilateral assistance 
is critical for its economy, especially after the po litical, social, and economic upheaval of the last 
decade, which has led to a severe contraction of the economy (Chapters I and II).  Zimbabwe 
continues to have a very difficult relationship w ith its traditional bilatera l and multilateral donors.  
Since the general election of 2000, characterized by tensions and hostilities, Zimbabwe has received 
very limited donor support, following a virtual freeze of  relations with most of the world, except for 
other African countries and a few countries in Asia .  The launch of the Fast Track Land Reform 
Programme in 2000 has also played its part (Chapter IV(2)(i)).  The donor freeze has had an obvious major impact on all sectors (Chapters III and IV). 
2. The measures subsequently taken by the Gove rnment, including price controls and monetary 
financing of budget deficits, and th e non-prioritization of the very limited budgetary resources, further 
deteriorated the situation.
1  The country's problems were exacerbated in the run-up to the last elections 
in 2008, which were also characterized by violence, and an atmosphere of political intolerance.  The 
Global Political Agreement (GPA) was concluded in 2009 to bring some level of calmness to the 
highly charged political environment (Chapter II(1) and (4)). 
3. The World Bank, IMF, and the major west ern donor countries have re-engaged with 
Zimbabwe after the signing of the GPA in 2009, al beit at varied levels, although some are still 
reluctant.2  The overall result  is that there has b een no major donor injection of funding for 
development assistance.  Prior to 2000, the main bilateral donors were European Union (including its 
major economies on a bilateral basis), United States , Canada, Australia, New Zealand, Switzerland, 
and Japan. 
4. In response to the relatively stabilized macr oeconomic environment that resulted from the 
formation of an inclusive government, pursuant to the GPA, the AfDB was re quested to spearhead the 
process of Zimbabwe's re-engagement with the inte rnational donor community, at both the bilateral 
and multilateral levels.  The AfDB proposed a recovery  strategy for Zimbabwe to oversee the first two 
years of re-engagement.3  The strategy, launched in May 2009, covered the period to December 2010.  
It was anchored on support to the inclusive Governme nt formed in February 2009 on the basis of the 
GPA, and on the implementation of its Short- Term Emergency Recovery Programme (STERP).  
STERP emphasized political stability, good governance,  social protection, sound macroeconomic 
management, and growth.  It eliminated the financ ing of budget deficits by the Reserve Bank, and 
introduced cash budgeting for all government operations.  
5. The objectives of the strategy are to cont ribute to improved economic stability, better 
financial and economic management  and accountability, greater private sector and international 
confidence, as well as the development of key areas such as the rehabilitation of infrastructure and 
general institutional capacity building.  The longer-ter m goal is the revival of strong private-sector-led 
growth, building on Zimbabwe's considerable natura l resource endowments.  This requires that steps 
                                                      
1 Economist Intelligence Unit (2000-09);   and World Bank (2004). 
2 For example, the U.S. Zimbabwe Democracy and Economic Recovery Act (ZIDERA), US Congress, 
S.494, 21 December 2001 has not been repealed;  and the EU's Zimbabwe Re strictive and Appropriate 
Measures, Common Council Position 2004/161/CFSP, 19 February 2004 (adopted as an Act pursuant to Title V 
of the Treaty on European Union, I.50/66), was renewed on 16 February 2011.  
3 African Development Bank (2009). WT/TPR/S/252 Trade Policy Review 
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be taken to stimulate private sector activity, pr omote investor confidence, restore protection of 
property rights, and reduce the cost of doing business.  A recent IMF Article IV Consultation 
concluded that economic recovery will not be po ssible in Zimbabwe without foreign assistance and 
private capital.4  
6. The Strategy helped kick-start financial sector  operations;  and identified specific sectors, 
especially those covering physical infrastructure development where the AfDB can leverage its resources with those of other donors, assist th e Government with policy development and 
implementation, and liaise with the wider internati onal community.  So far, there has been broad 
support for international financial institutions to re-engage with Zimbabwe, and for them to provide 
immediate financial and technical assistance.  This is in view of the recognition that "the nascent 
economic recovery, underpinned by significant im provements in policies in 2009, remains very 
fragile".
5  The AfDB also assisted the Ministry of Fi nance to set up Zimbabwe's debt and arrears 
clearance strategy, which has since been adopted, a nd consequently a Debt and Aid Monitoring Office 
within the Ministry of Finance.  The authorities indicate that the AfDB committed to provide US$70 
million in development assistance to the country in  2009.  However, only US$6 million was disbursed 
for institutional capacity building in the minist ries of Finance;  Economic  Development and 
Investment Promotion;  Regional Integration a nd International Co-operation;  as well as to 
ZIMSTATS and the offices of the Auditor General and Comptroller General. 
(2) DEVELOPMENT STRATEGY  
7. The Medium-Term Plan (MTP) guides all Government economic policy documents, 
including the national budgets, setting out clearly the Government's priorities to stakeholders – private 
sector, regional and international coop erating partners, and civil society.6  The MTP draws its 
inspiration from the GPA, which is to support th e restoration of economic stability and growth in 
Zimbabwe.  It also builds on the foundations laid by STERP.7  The MTP guides all other government 
policy documents and sets out the national priorities and investment programmes for 2011-2015. 
8. The goal of the MTP is the restoration and transf ormation of national capacity for sustainable 
economic development, poverty redu ction, and employment creati on.  It is, therefore, the 
Government's conduit for achieving the Millenni um Development Goals (MDGs) as well as the 
Poverty Reduction Strategy.  The MTP seeks to maintain macroeconomic stability and restore the economy's capacity to produce goods and services co mpetitively, building upon the gains achieved 
since the launch of STERP in March 2009.  The MTP provides that the goal of economic growth will 
be realized through:  transformation of the econom y from being a producer of primary commodities to 
value addition and new knowledge-b ased industries;  balanced deve lopment and equal opportunities 
for all citizens;  instituting sound economic and sect oral policies;  and sustained delivery of quality 
services such as health care, educati on, road transportation (including rural, urban, and trunk roads), 
energy, water, and sanitation.  
9. The broad targets of the MTP are:  to achieve  average growth of 7.1% during the Framework 
period;  an interest rate regime that promotes savings and fosters investment;  a current account deficit of not more than 5% of GDP;  sustained single-di git annual inflation;  average employment creation 
rate of 6% per annum;  sustaine d poverty reduction and progress in line with MDG targets;  foreign 
exchange reserves of at least three months of  import cover by 2015;  double-digit savings and 
                                                      
4 IMF (2009b). 
5 IMF (2010a), p. 3. 
6 Government of Zimbabwe (2010). 
7 STERP (February-December 2009), and STERP II;  (the three-year Macroeconomic Policy and 
Budget Framework). Zimbabwe WT/TPR/S/252 
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investment ratios by 2015;  and improved social i ndicators, including education and health, which are 
fundamental for the sustainable development of the economy. 
10. The MTP priorities are consistent with the G overnment Work Programme Priorities published 
in March 2010, STERP, and the Three Year Macro economic Budget Framework.  In implementing 
the DFC and achieving the national vision as set out  in the Framework, the following strategic 
priorities will underpin government policies and progr ammes:  private sector-led economic recovery;  
employment creation and poverty reduction;  human development and social security;  and good governance.  
(3) A
ID-FOR-TRADE SUPPORT  
(i) The Chirundu One Stop Border Post (OSBP) 
11. As aid for trade operates within the broader s phere of bilateral and multilateral support, the 
disengagement of traditional bila teral and multilateral donors has meant that Zimbabwe has not had 
any significant benefit from the Aid-for-Trade initia tive since it was launched.  Zimbabwe has only 
benefitted from aid for trade in the context of support provided at a wider regional level.  One 
example of this is the Chirundu One Stop Border  Post (OSBP), under the North-South Corridor 
(NSC) project, a tripartite initiative of COMESA, EAC, and SADC. 
12. COMESA-EAC-SADC jointly initiated an NSC Pilot Aid for Trade Programme, aimed at 
reducing time of road and rail travel along the Corri dor, in order to significantly reduce the cost of 
doing business in the region.  The NSC is a transport corridor (road and rail) that links the port of 
Dar es Salaam corridor to the ports of South Afri ca through the Zambian Copperbelt.  This corridor 
services eight countries:  Tanzania, D.R. C ongo, Zambia, Malawi, Botswana, Zimbabwe, 
Mozambique, and South Africa.  
13. The Chirundu border post between Zimbabwe and Za mbia is one of the busiest inland ports in 
the region, with between 300 and 400 vehicles cr ossing the border each day.  Chirundu was selected 
to pioneer the introduction of the one-stop-border-post concept in the region, together with two other 
border posts: Kasumbulesa, between D.R. Congo an d Zambia; and Malaba Tororo, between Uganda 
and Kenya.   The Chirundu OSBP is Africa's first functioning One Stop Border Post.  The project is 
being implemented through the Regional Trade Facilitation Programme (RTFP), with financial 
support from the United Kingdom's Department for International Development (DFID), the Japan 
International Co-operation Agency (JICA), and the World Bank. 
14. The overall objective of establishing the Chirundu OSBP is to improve trade facilitation 
through the efficient movement of goods and service s, as well as people, within the COMESA, EAC, 
and SADC regions.  According to the World Bank, 25% of border delays are caused by infrastructural problems and 75% are caused by poor trade facilitation unrelated to infrastructure.  It is widely accepted that for trade to flow smoothly and to increase competitiveness, it is necessary to improve 
trade facilitation.  The time delays and a bureaucratic approach to trade make African transport costs, 
on average, three times higher than South Ameri ca's, and five times higher than Asian costs. 
15. The establishment of the Chirundu OSBP will e nhance trade through, among other things:· 
the reduction of transit times for traders and transpor ters, leading to more effective use of available 
resources and assets, thereby resulting in lower co sts;  improved competitiveness in the region 
through reduced processing times at the border, which would translate into reduced costs;  enhanced 
reliability of the supply chain through stream lined and harmonized border procedures between 
Zimbabwe and Zambia, resulting in predictable movement of goods;  the development of better 
operational controls through shared and improved exchange of information among border agencies;  WT/TPR/S/252 Trade Policy Review 
Page 120 
  
and improved revenue collec tion at the border, through a faster turn-around time for transporters.  The 
authorities indicate that efforts are under way for Chirundu OSBP to operate 24 hours a day; limited 
resources are delaying progress in the full implementation of Integrated Border Management projects at the ports of Beitbridge, Plumtree, Forbes, and Nyamapanda. 
(ii) Trade-Related Technical Assistance (TRTA) needs 
16. Zimbabwe, like most developing countries, has been a recipient of TRTA since the 
establishment of the WTO in 1995.  Over the years, Zimbabwe has benefitted from many TA activities, at national and regional level, as well as se veral Geneva-based activities.  In the last three 
years, the WTO has delivered technical assistance to  Zimbabwe on:  tariff analysis;  agriculture;  
NAMA;  trade in services;  trade facilitation;  SPS;  TBT;  and establishment of WTO reference centres at the Ministry of Commer ce and Industry, and at the national university.  The reference 
centres were installed in 2010 and 2011, and are ex pected to greatly enhance Zimbabwe's access to 
information on the WTO and other multilateral trade i ssues.  In addition, Zimbabwean participants 
have attended approximately 35 regional activities on a variety of subjects including agriculture;  
Non-Agricultural Market Access issu es (NAMA);  development issues, trade negotiations skills, trade 
and environment;  trade in services;  TBT, and SPS.  Zimbabwean officials have attended nine 
Geneva-based activities, including the regular Trade Policy course in 2010.  Zimbabwe also benefitted 
from the mission internship programme in 2011.  With respect to e-training, 42 Zimbabwean 
participants have registered for a variety of courses since the inception of the programme. 
17. A number of challenges remain for Zimbabwe  with respect to human and institutional 
capacity in trade-related matters.  Based on its requests for technical assistance in the last three years, 
Zimbabwe's most immediate needs are:  general ca pacity building;  non-agricultural market access 
issues, a wide area covering many varied subject s;  and rules, which also encompasses many WTO 
areas.  There is lack of specificity in Zimbabwe's  technical assistance requests, which reflects the lack 
of a detailed TRTA needs assessment for the countr y in recent years.  In this regard, a detailed 
technical assistance needs assessment would be of gr eat help to enable Zimbabwe to narrow down its 
needs, and rank those needs in terms of priority. 
18. In discussions with the authorities in the cour se of this Review, Zimbabwe's trade-related 
technical assistance needs are:  
 (i) trade remedies:  developing a know ledge base and subsequent legislation; 
 (ii) tariff analysis;  
 (iii) intellectual property rights:  consolid ation of knowledge with a view of full 
implementation of commitments; 
 (iv) notifications:  general training with a view of more timely notifications under the 
various WTO agreements; 
 (v) upgrade of trade information systems at Zimtrade, and developing linkages with the 
Ministry of Industry and Commerce and ot her stakeholders, such as the Competition 
and Tariff Commission, business associations, Standards Association of Zimbabwe, Statistical Office, and international orga nizations that deal with trade-related 
information such as WTO, UNCTAD, and ITC; 
 (vi) establishing WTO reference centres at chambers of commerce and at universities in 
the country; 
 (vii) training and upgrading national quality infrastructure systems at the Standards 
Association of Zimbabwe, in order to fulfil TBT and SPS obligations arising from 
regional and multilateral commitments; 
 Zimbabwe WT/TPR/S/252 
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 (viii) training in checking and enforci ng quality standards at the border;  and 
 (ix) training in SPS issues.   
(iii) Supply-side and infrastructural constraints 
19. Zimbabwe's supply-side and infrastructural  constraints are identified in the MTP.
8  I n  
summary these are:  financing constraints as a r esult of Zimbabwe's inability to access traditional 
sources of financing, as indicated above;  energy sh ortages, caused by years of lack of maintenance, 
due to severe hard currency shortages prior to th e dollarization policy in 2009, which has led to 
rolling power cuts throughout the year;  and a manpower deficit caused by the huge outward 
migration to neighbouring countries, and beyond, as  a result of the economic decline of the last 
decade.  Other infrastructural deficiencies include the out-dated and poorly maintained railway track 
and obsolete train signalling equipment, which are both crucial for landlocked Zimbabwe's access to 
the ports of neighbouring South Africa and Mozamb ique;  an urgently needed upgrade of the road 
network, which was once one of the best in Sub-Sa haran Africa;  and a telecommunications system in 
need of an urgent upgrade.  In general, the M TP calls for "aggressive and substantive investment in 
capital, labour and technology, complemented by a completely new paradigm shift to a business 
orientation".9 
 
                                                      
8 Government of Zimbabwe (2010), p. 23. 
9 Government of Zimbabwe (2010), p. 23. Zimbabwe WT/TPR/S/252 
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