WASHINGTON – A new bill being considered by the United States House of Representatives, H.R. 5300, could lead to a significant change in American foreign policy towards Zimbabwe and commercial relations with Africa.
The legislation proposes repealing the Zimbabwe Democracy and Economic Recovery Act of 2001 (ZIDERA), while also introducing new conditions for U.S. support of international funding for Zimbabwe and enhancing trade across the African continent.
The bill’s most prominent feature is the proposed repeal of ZIDERA, a law that has restricted U.S. support for Zimbabwe’s access to international financial institutions like the International Monetary Fund (IMF) and the World Bank since 2001.
H.R. 5300, however, introduces new, specific requirements for Zimbabwe to meet before receiving any U.S.-supported funding from the IMF or World Bank.
Within 12 months of any new funding approval, the Zimbabwean government must commit to remitting all outstanding, inflation-adjusted arrears under the Global Compensation Deed.
“The United States shall not support any new or expanded funding from the International Monetary Fund or the International Bank for Reconstruction and Development (commonly known as the World Bank) for the Government of Zimbabwe unless the Government of Zimbabwe shall commit, within 12 months of the approval of such new or expanded funding, to remit all outstanding arrears owed under the Global Compensation Deed, inflation adjusted to the date of enactment, and compensation shall not be in the form of Zimbabwe issued securities,” the bill stated.
“Failure to comply with this provision shall result in an immediate cessation of all United States support for any further funding from these institutions.”
The Global Compensation Deed, signed in July 2020, is an agreement between the Zimbabwean government and former commercial farmers to provide compensation for land and improvements seized during the country’s land reform program.
The government has begun making some payments, but has also used treasury bonds, which the proposed U.S. bill would prohibit as a form of payment for this purpose.
Beyond its focus on Zimbabwe, the bill aims to bolster U.S. engagement with the entire African continent through commercial diplomacy.
The legislation directs the U.S. to actively encourage and facilitate two-way trade and investment with African nations, with the goal of fostering deeper commercial relationships and supporting economic growth across the region.
The bill is currently pending before the House Committee on Foreign Affairs for further discussion.
