CLAIM: Zimbabwe to get US$34 billion facilities for infrastructure
VERDICT: Misleading
By ZimFact Staff
In an article headlined “Zim to get US$34bn facilities”, published Friday, July 12, 2019, The Herald reported that Zimbabwe was to see investment worth US$34 billion over the next decade. The claim was premised on comments made by AfDB’s principal country economist, Walter Odero, at the launch of the bank’s 2019 Zimbabwe Infrastructure Flagship Report at an event in Harare on Thursday, July 11.
According to The Herald: “Zimbabwe is set to achieve US$34 billion worth of infrastructure development in the next decade, the African Development Bank (AfDB) has said. The country is set to close its gap, thanks to Government’s policies, and the 2019 Zimbabwe Infrastructure Flagship Report, which was prepared by the bank on behalf of the Government and launched in Harare yesterday outlines Zimbabwe’s leap in the next decade.”
This is an inaccurate interpretation of both Odero’s remarks, and of the report itself. The AfDB only said that Zimbabwe needs US$34 billion to close its infrastructure gap, and not, as suggested by The Herald, that the country will get facilities to fund the investment.
Background
The AfDB last released a report on the state of infrastructure in Zimbabwe in 2011. After the ouster of President Robert Mugabe in 2017, the new government of President Emmerson Mnangagwa requested a new report from the AfDB. The new report was released in Harare on July 11.
According to the foreword in the latest AfDB report: “Zimbabwe has faced headwinds over the last decade resulting in a collapse of the economy. However, following the political transition of November 2017, the new government requested the African Development Bank to update the 2011 Zimbabwe Infrastructure Flagship Report, so as to aid in investment planning as part of the vision 2030.”
What does the report say?
The 2019 Zimbabwe Infrastructure Flagship Report gives a breakdown of the infrastructure shortfalls in Zimbabwe, the total cost of which the AfDB estimates at US$34 billion.
The report states the following: “The total cost is put at about USD 34 billion at 2017 constant prices, including USD 8 billion of private investment in upgrade of existing infrastructure and new capacity. The water supply and sanitation and resource management, would require an outlay of USD 3.67 billion for capital works and related technical support.
“The power programme would require about USD 1.14 billion, the transport sector requires approximately USD 28.56 billion of which most is required in the road sub-sector. The communications sector would require about USD 412 million, primarily to the creation of a national fibre optic backbone network. Not included in these estimates is USD 43 million for routine road maintenance.”
A breakdown of Zimbabwe’s infrastructure needs, worth US$33.7 billion. Source: AfDB (2019)
In its report on the launch of the report, The Herald itself quotes Odero as saying: “The report we are launching today confirms that the country needs US$34 billion over the next decade to restore its road, rail, aviation, energy, ICT and water and sanitation infrastructure to proper working condition.”
The report was more accurately captured by other media. BusinessWeekly reported that “Zim needs $34bn for infrastructure upgrade”.
CONCLUSION
The Herald’s claim that Zimbabwe is to get US$34 billion worth of facilities for infrastructure is misleading. What the AfDB report, and its chief economist said, was that US$34 billion is what the country needs to raise for infrastructure rehabilitation.
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