| Media Contact: |
In Washington
Richard Uku (202) 473-3432 |
| Operational Contact: |
In Zimbabwe
Rogier Van Den Brink 263 4 729 611 |
|
To obtain project documents please contact the World Bank's Infoshop
at tel: 202-458-5454, fax: 202-522-1500, email: pic@worldbank.org |
Washington, November 16, 1999 â The Government of Zimbabwe and the World Bank have signed a US$5 million credit to finance the resettlement of poor farmers under the Government's land reform program. The credit will finance mainly resettlement costs and on-farm investments. The credit comes in the wake of the Government's adoption of a new policy framework to guide land reform: the Inception Phase Framework Plan (1999 2000). This policy framework is the culmination of intensive and on-going consultations between the Government, stakeholders, and development partners on land reform in Zimbabwe.
The main policy objective of the Government's Inception Phase of the Land Reform and Resettlement Program is to learn by doing and test out innovations and improvements to existing approaches, while resettling about 34,000 farmers on about 1,000,000 ha. The IDA credit is therefore classified as a Learning and Innovation Loan (LIL). The key characteristic of the approaches to be financed under the LIL is that they are community-led and facilitated by flexible partnerships in implementation between the Government, NGOs and private sector associations.
"This is good news", said Senior Minister Joseph Msika - the Minister responsible for the land reform program. "I am very pleased that the World Bank has taken the lead on fulfilling the pledges made at the 1998 Donor Conference. I hope and trust that many other donors, stakeholders and NGOs will follow." In order for the credit to start disbursing, the Government expects to put in place a Technical Support Unit (assisted by the UNDP, Sweden, the US, Norway and the Netherlands) and provide the necessary counterpart funds for land acquisition as soon as possible.
The World Bank's Country Director for Zimbabwe, Barbara Kafka, commented: "The Bank fully supports the Government's Inception Phase policy framework and will now start to finance the actual resettlement of poor farmers with this credit. I believe that successful implementation of land reform is key to resolving one of the most fundamental equity and efficiency issues facing the country as it enters the new millennium."
The project will be financed by a US$5 million equivalent credit from the International Development Association (IDA), the World Bank's lending arm for the poorest countries. The IDA credit is on standard terms: interest-free and 35 years maturity, including 10 years grace. |
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