EU seeks to renew Zim ties

from the BBC:

....The EU's aid commissioner and a Swedish minister will head the EU team.

EU officials stress that it is far too soon to talk about lifting sanctions immediately. They say it is just a preparatory visit, to re-establish a political dialogue. ...
it is mindful that President Mugabe has still not fulfilled all his promises to end harassment of the opposition, and to respect human rights, the BBC's Peter Nettleship reports....

Lifting sanctions will spur Zim economy

from the African executive:

Most of the article is a tirade blaming the west for sanctions that caused all of Zim's troubles.

...The mere act of lifting sanctions on Zimbabwe coupled with the tangible effects of credit availability will ease the external payments arrears and improve the nation’s risk profile, allowing companies to receive credit at more viable rates. This will serve to reduce internal inflationary pressures as well as allow companies to increase capacity utilization levels and in so doing provide more goods and services whilst bolstering employment.

Key Sectors of the Economy

The persistent fuel shortages have severely reduced productivity across all the key sectors of the economy namely agriculture, mining, manufacturing, tourism, construction and transport. These shortages have also been affecting the day to day operations of commerce and the public transport system, resulting in loss of crucial production hours. Small-scale miners and newly resettled farmers are being hit hard because of their reliance on diesel powered equipment and inadequate fuel has also impacted negatively on land preparation and ultimately yields of a whole range of crops.

This fuel shortage coupled with the fact that scarce foreign currency resources are being used to import grain and other food as opposed to being channelled towards importing critical inputs to reduce costs for farmers has had a devastating impact on the sector.

The agriculture sector contributes approximately 20% of Zimbabwe’s GDP, 22% of foreign exchange earnings and 23% of formal employment, therefore if economic sanctions are lifted and credit is made available to Government, the 300,000 newly resettled farmers will be in an ideal position to contribute to the economic recovery process. Not only because of the inevitable increase in availability and affordability of essential inputs but also because of the Reserve Bank’s farm mechanization initiatives which have equipped them and the current liberalisation will ensure that they have great financial incentives to produce....

US and European Union continue sanctions for now

from the BBC

chief Javier Solana said a decision on lifting sanctions on Zimbabwean officials had been postponed until October.

The International Monetary Fund, which suspended financial and technical assistance in 2006, said it stood ready for talks with the new government about stabilising the economy.

But it added that Harare would have to take clear steps to resolve the economic crisis in a country where inflation stands at more than 11,000,000%.

'Painful compromises'

In a statement, the 27 EU ministers said they would watch for the agreement's implementation, especially the "immediate cessation of all forms of intimidation and violence". ...
US Assistant Secretary of State for African Affairs, Jendayi Frazer, said: "We haven't yet had a chance to study the details of the agreement, nor do we know who will be in the cabinet of this new government, so in some ways it's a bit premature for us to comment until we have the full picture." ...

Zim mining and banking companies on US sanctions list

from SWRadioAfrica

....The US targeted sanctions freezes the assets of the named individuals and entities, and US nationals are prohibited from conducting financial and foreign transactions with them.

However the South African government condemned the measures describing them as “interference” in Zimbabwe’s affairs. Deputy Foreign Minister Aziz Pahad told a news conference that it was difficult to understand the objectives of the new sanctions at a time when the political parties are negotiating a way forward. South Africam, which is facilitating the talks between ZANU PF and the two MDC formations, is viewed as a long-time ally of the Mugabe regime.

But US President George Bush said the smart sanctions were there to put pressure on the ZANU PF elite, which continues with a violent campaign against opponents and has not lifted the ban on humanitarian aid.
Bush has authorised an additional US$2.5million in aid to assist refugees and asylum seekers displaced by the political violence. He said; "We will also continue our efforts to provide food and health assistance as part of our commitment to help the people of Zimbabwe in their time of greatest need." ...


full list is at link