Mugabe seeks repeal of Western sanctions

ZIMBABWE is talking to the US and EU over the repeal of sanctions, according to an economic policy document, the first sign the new government may be gaining the confidence of Western powers.

But Washington rejected President Robert Mugabe’s call to ease sanctions on the impoverished African country, saying the government had “a long way to go” before this could happen.

The document, released yesterday by the unity government, said political reforms demanded by Western donors were a crucial part of an emergency recovery plan to ease hyper-inflation and widespread shortages of food and fuel.

At the launch of the government’s Short-term Emergency Recovery Programme, Mugabe called for international help for the plan and reiterated a call for the sanctions to be lifted.

The document forecast that inflation would fall to 10% by the end of 2009 — from more than 230 million percent at last count — due to the use of multiple foreign currencies to replace the almost worthless Zimbabwe dollar.

The document said Zimbabwe has started talking to the US, EU, IMF and World Bank over the removal of sanctions.

“In this regard, discussions have already started with the EU, European Commission, World Bank, IMF, and the (African Development Bank) AfDB with the objective of removing the above sanctions and measures,” the document said.

The government faces the daunting task of rebuilding a shattered economy after years of hyperinflation and decline.