DENMARK – ZIMBABWE PARTNERSHIP POLICY 2013-2015

2

CONTENTS

EXECUTIVE SUMMARY 3

INTRODUCTION 5

KEY CHALLENGES AND OPPORTUNITIES IN ZIMBABWE 6

DANISH PARTNERSHIP POLICY TOWARDS ZIMBABWE 9

RISKS, SCENARIOS AND IMPLICATIONS

FOR THE DANISH ENGAGEMENT 14

ANNEX 1: KEY ECONOMIC DATA FOR ZIMBABWE 16

ANNEX 2: STRATEGIC FOCUS AREAS,

RESULTS AND INDICATORS 18

ANNEX 3: MAIN FOCUS AREAS OF DONORS IN ZIMBABWE 23

ANNEX 4: ZIMBABWE’S MEDIUM TERM PLAN 2011-2015 24

ANNEX 5: PROGRESS TOWARDS THE MDGS IN ZIMBABWE 25

3

EXECUTIVE SUMMARY

Zimbabwe is characterised by a highly fluid political context as

the country is struggling to become a stable multi-party demo-

cracy free of violence and human rights abuse. Potential is there

for a rapid recovery following democratic reform, but there are

also forces in Zimbabwe that would rather see the current status

quo maintained. Zimbabwe’s ranking as number 173 of 187

countries on the 2011 United Nations Human Development Index

underlines that challenges are numerous. In spite of steady

economic growth since 2009 development is far from reaching

all in society.

Denmark has been actively engaged in Zimbabwe since the

struggle for independence and has since the creation of the

Government of National Unity in 2009 strengthened relations and

increased development cooperation significantly. Thus, Denmark

is again among the largest bilateral development partners to the

country. Denmark strongly believes that international dialogue

and reengagement with Zimbabwe is vital to bring the country

forward. Through active diplomatic efforts involving the countries

in the SADC region (Southern African Development Community)

and the EU, Denmark works for a situation where the continuation

of restrictive and appropriate measures against Zimbabwe are

no longer relevant.

Danish engagement in Zimbabwe takes the point of departure

in a rights based approach and aims to build democratic institu-

tions and promote universal human rights while at the same

time supporting economic inclusive growth, private sector devel-

opment and improved livelihood for the ordinary Zimbabwean.

In pursue of this, Denmark applies a variety of different instru-

ments, including diplomatic dialogue, strengthened trade and

business cooperation and an extensive development cooperation

programme.

4

Dete

Kariba Dam

Cahora Bassa Dam

Nata

Mosetse

Selebi-Pikwe

Francistown

Antelope Mine

Plumtree

Eastnor

Kwekwe

Inyati

Bulawayo

Dahlia (Gwayi River)

Victoria Falls

Hwange

Binga

Siyakobvu

KamativiMatetsiGokwe

Kariba

Chirundu

Karoi

LuangwaKanyemba

Centenary Mount DarwinChangara

Cahora Bassa

Catandica

Chimoio

Manica

Dombé

Espungabera

LivingstoneKazungula

Kasane

Kachikau

ChomaMulobezi

Sesheke

KalomoMasuku

Maamba

Namwala Mazabuka

Monze

Kafue

Chitungwiza Nyanga

Chimanimani

Hot Springs

ChipingeBirchenoughBridge

West NicholsonWest Nicholson

Beitbridge

Messina

Rutenga

Shurugwi

Kadoma

Chivhu

Chegutu

ZaveKildonan

Malvernia

Nandi Mill

Chiredzi

Mbizi

GlenclovaGutu

Triangle

ShamvaGlendale

Mhangura

RusapeNyazura

Hwedza

Zvishavane

Mvuma

Redcliff

Mutoko

Muzarabani

Pandamatenga

Zumbo

TeteMakuti

Siabuwa

Esigodini

Thuli

Makado

Bindura

Gweru

Masvingo

Gwanda

Mutare

Marondera

Lupane

Chinhoyi

Harare

Lusaka

M I D L A N D S

M A S V I N G O

MATABELELANDNORTH

MASHONALANDWEST

MASHONALAND

CENTRAL

MATABELELANDSOUTH

MANICALAND

MAS

HONA

LAND EAST

LakeKariba

ZambeziKafue

Zambezi

Shangani

Gwayi

LimpopoLimpopo

Shashe

Manisi

Runde

Runde

Save

Rio Revuè

Rio Buzi

LagoChicamba

Albufeira deCahora Bassa

Zambèze

Maz

oe

Hun

yan i

Sengwa

Nata

Sanyati

VictoriaFalls M

unyati

MakgadikgadiPan

Lake Mutirikwi

Mutiri kwi

Linyanti C

hobe

Odz

i

Save

Gwayi

Umzingwani

Lake Manyame

L. Chivero

Z A M B I A

B O T S WA N A

S O U T H A F R I C A

MOZAMBIQUE

NAMIBIA

MOZAM

BIQUE

ZIMBABWE

Map No. 4210 Rev. 1 UNITED NATIONSJanuary 2004

Department of Peacekeeping OperationsCartographic Section

The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

National capitalProvincial capitalTown, villageMajor airportInternational boundaryProvincial boundaryMain roadSecondary roadRailroad

ZIMBABWE

0 50 100 150 km

500 100 mi

27° 28° 29° 30° 31° 32° 33° 34°

16°

17°

18°

19°

20°

22°

16°

17°

18°

19°

20°

21°

22°

26° 27° 28° 29° 30° 31°

5

INTRODUCTION

“We dedicate ourselves to putting an end to the

polarisation, divisions, conflict and intolerance that

has characterised Zimbabwean politics and society

in recent times”, (the Global Political Agreement

of Zimbabwe.)

This paper outlines the strategy for the Danish engagement with

Zimbabwe at a time where the country is undergoing a difficult

transition process towards further democratization. The political

situation in Zimbabwe remains complex and volatile and a return

to unrest would be a major set-back for Zimbabwe and have

a destabilizing effect on the entire region. Within this context,

Denmark is strongly committed to supporting the Zimbabwean

people in achieving their rights for a better life characterised

by stability, social progress, economic growth and respect for

human rights.

The first years following independence in 1980 Zimbabwe was

considered a model for development and known as the bread-

basket of Africa. Soon after, however, the country went through

substantial turmoil following internal power struggles, culmina-

ting in 2008 when disputed elections led to widespread violence

and the economy came to a near collapse. Since the establish-

ment of the power sharing agreement between the political

rivals President Mugabe (ZANU-PF) and Prime Minister Tsvangirai

(MDC-T) in early 2009, some degree of economic progress and

social stability has been created while key challenges related

to the democratic reform process remain unsolved.

During the struggle for independence Denmark was a stern

supporter of a free and independent Zimbabwe. Later Denmark

supported building the new nation through extensive develop-

ment programmes in the 1980’s and 1990’s. While the indepen-

dent Zimbabwe initially developed well and saw significant social

progress, challenges around inter alia land distribution, property

rights and democratic inclusion remained largely unanswered.

More recently, and with the establishment of the Government of

National Unity, Denmark has significantly increased development

cooperation and strengthened diplomatic ties. Following the

crisis culminating around 2008, Denmark has been instrumental

in reestablishing health and education services through the provi-

sion of school books for all primary and secondary students in

the country and a health retention scheme ensuring presence of

medical staff. Also, since 2008 Denmark has together with other

development partners helped approximately 2 million of the most

vulnerable people out of immediate food shortage and distress.

Following initial humanitarian efforts Denmark has taken decisive

steps in order to support long term development in close coopera-

tion with Zimbabwean partners both in government and civil

society at large.

This partnership policy outlines the strategy for the Danish

engagement in Zimbabwe from 2012 to 2015. Due to the fragile

nature of Zimbabwean politics that creates uncertainties around

the development in the country, the strategy operates with

different scenarios that allow Denmark to adapt flexibly to

changes in the context.

6

KEY CHALLENGES AND OPPORTUNITIES IN ZIMBABWE

ZIMBABWE AT A CROSS ROAD

The coming years may take Zimbabwe

in very different directions: Towards

democracy, stability and prosperity,

continued impasse in the democratic

reform process, or renewed conflict and

set-backs in the economic development.

At this critical juncture in history

Zimbabwe faces the following key

challenges:

1. Peaceful transition to a stable multi party democracy: Reconciliation and

implementation of democratic reform

leading to democratically elected

governments, construction of

democratic institutions that ensure

fundamental political rights for all

citizens and independence of state

powers.

2. Respect for human rights and rule of law: Ending human rights abuses

continues to be a key challenge.

Elimination of all human rights abuses

and respect for the rights of all citizen

groups is a fundamental precondition

for the development of a free and

thriving society.

3. Inclusive economic growth and reduction of poverty: Economic reform

and materialization of the significant

economic potential to the benefit of

the general Zimbabwean population.

Some progress towards democratization,

respect for human rights and economic

development has already been achieved

since establishment of the government

of national unity in 2009. Most schools

and clinics have re-opened, and while

still a challenge, food security, HIV-AIDS

and cholera epidemics have come under

better control. Also, the Global Political

Agreement, facilitated by the SADC region,

has led to some progress in establishing

democratic institutions and the economy

has largely stabilized.

On the other hand the political situation

remains volatile and challenges are many

in the years to come. Intimidation and

violence remain widespread while part

of the political elite continues to hold a

strong grip on key institutions, including

the security sector and broadcast media.

Also, considerable outstanding debt,

a weak financial sector and unfunded

public wage bills constitute significant

challenges for the creation of a sustai-

nable economy. Revenues from the mining

sector including highly lucrative diamond

reserves are not sufficiently benefitting

the ordinary Zimbabwean.

THE BUMPY ROAD TO MULTI PARTY DEMOCRACY

Transition to multi-party democracy

has proven to be a difficult process in

Zimbabwe where a small elite has held

on to power and effectively dominated

politics, economy, media and the security

sector for decades. Many within this

existing power circle are very reluctant

to give up privileges and status.

Political dynamics are to a large degree

dictated by the succession struggle within

ZANU-PF while Mugabe ages as well as

the struggle between those in society that

would like to see democratic reform and

those that would like to see status quo.

In this sense Zimbabwe remains a fragile

state that may develop in very different

directions depending on the outcome

of the ongoing power struggle.

In order to take decisive steps towards

democratization, the deadlock between

the old power elite and new democratic

forces must be broken and this will likely

take movement on both sides based on

a spirit of reconciliation.

Elections in Zimbabwe have in the recent

past been characterised by instability

and violence, intimidation and human

rights abuse. A referendum on a new

constitution with a more representative

distribution of powers between several

political parties is being planned in 2013.

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Its adoption and posterior implementation

is together with reforms of media, security

sector and the election system of para-

mount importance for creating a conducive

environment for credible, free and fair

elections to be held in Zimbabwe.

GOVERNANCE AND HUMAN RIGHTS – A FOUNDATION FOR DEMOCRACY AND DEVELOPMENT

Zimbabwe still shows the key attributes

of a fragile state, with the breaches of

fundamental human rights being a central

obstruction for the creation of a stable

democracy. Human rights violation and

politically motivated violence and limited

access to justice continue to affect the

citizens, including in particular women

and children. The democratic processes

are fragile and needs strengthening;

national institutions like the Independent

Commission on Human Rights, Media

and Anti-Corruption have not fully been

established as real watchdog and accoun-

tability institutions. Furthermore, access

to information media is still restricted.

Good governance and respect for human

rights, including civil society initiatives

in Zimbabwe, is intrinsically linked to,

and dependent on, the steps taken by

the central government and the security

sector.

In the context of the Global Political Agree-

ment and the Government of National

Unity (GNU) being formed, a number of key

national reforms were agreed to be under-

taken during the transitional period, and

before the holding of free and fair elec-

tions. In order to oversee the implementa-

tion of the Global Political Agreement,

a Joint Monitoring and Implementation

Committee (JOMIC) was established,

and JOMIC should further give feed back

to SADC in the implementation of the

Global Political Agreement.

Even with the recent somehow more stable

environment, civil society organisations

face continuous harassment and intimida-

tion. The need for rapid response, both

in terms of the beneficiaries and target

groups that the NGOs work with, as well

as their own staff is a characteristic need

of many of the NGOs in the frontline of

human rights activities such as human

rights defenders.

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INCLUSIVE ECONOMIC GROWTH AND POVERTY REDUCTION – PROGRESS WITH CONCERNS

The economy in Zimbabwe will not be

sustainable in the longer term without

significant reforms, including job creation,

strengthened public financial manage-

ment, investment protection, access

to liquidity and increased fight against

corruption. Earlier, historically high

inflation rates in 2008 led to the collapse

of the Zimbabwean dollar and brought

the economy to a stand-still. This resulted

in decreasing productivity – in particular

in the agricultural sector severely affected

by arbitrary land evictions of mainly white

commercial farmers, which have further-

more created substantial uncertainty

around property rights. Against this

background transfer to a multi currency

economy (albeit mainly USD based) in

2009 and favourable commodity prices

helped Zimbabwe to a fairly quick recovery

of the basic economy.

Unemployment amongst especially youth

and lack of distribution of wealth are

fundamental mega-trends that threaten

continued social stability in Zimbabwe.

Significant challenges remain to ensure

fundamental labour rights. Furthermore,

underemployment of around 80 percent

and a large informal sector has together

with lack of taxation of revenues from a

number of sectors furthermore contributed

to the creation of a largely untaxed

economy - leaving the state without real

possibility to undertake long-term public

investments. This is reflected in a highly

neglected infrastructure. The Africa

Development Bank estimates that there

is an immediate need for investments

in the order of USD 14 billion to ensure

rehabilitation of existing infrastructure

alone.

Nevertheless, there is a substantial

potential for improving the economic

performance of Zimbabwe further.

The potential for agriculture and tourism

is huge and may under the right circum-

stances be re-established and provide

good living conditions for the majority

of Zimbabweans living in rural areas.

Also, mining holds a lot of potential,

in particular diamonds, platinum and

gold. Nevertheless, Zimbabwe faces

the challenge to develop the economy in

such a way that will benefit the ordinary

Zimbabwean.

The unclear and politicized implementa-

tion of the indigenization law (stipulating

51 per cent indigenous ownership to

companies in Zimbabwe) has effectively

hampered foreign investment. Also,

increasing problems related to corruption

undermine economic development.

Zimbabwe ranked 154 out of 182

countries on Transparency Internationals

Global Corruption Perception Index

in 2011 and indications suggest that

the situation is worsening.

The new economies such as China, India,

South Africa and Brazil have increased

their investments in Zimbabwe over the

last decade. Some observers have raised

the concern that these investments

do not sufficiently benefit the broader

population. However, the increased

presence also brings opportunities

to pursue a strengthened partnership

with the BRICS countries in Zimbabwe.

9

DANISH PARTNERSHIP POLICY TOWARDS ZIMBABWE

The overall objective for the Danish

engagement is to facilitate development

of a democratic Zimbabwe with reduced

poverty, respect for human rights, and

inclusive economic growth.

In accordance with the Danish Strategy for

Development Assistance and the Danish

Strategy for Fragile States, Denmark

supports the rights of the Zimbabwean

people to achieve better living conditions

Objectives

Instruments

Strategic focus areas

Stable and peaceful multi-party democracy in Zimbabwe

Respect for human rights

Inclusive economic growth and poverty reduction

Diplomacy and dialogue

Trade and private secktor development

Developmentcooperation

Democratic institution building, human rights, justice and reconcilation

Ecenomic reform leading to private sector, agriculture ledemployment and growth

Infrastructure rehabilitation

FIGURE 1 OBJECTIVES, INSTRUMENTS AND STRATEGIC FOCUS AREAS OF DANISH INVOLVEMENT IN ZIMBABWE

based on legitimate politics, justice,

security and economic and social develop-

ment.

In order to pursue this goal Denmark

makes use of different instruments,

including diplomatic efforts to reengage

and normalize relations, development

cooperation and promotion of culture,

trade and private sector development.

This approach is outlined in the table

below:

Below, the overall objectives of the Danish

approach are presented. A more detailed

description of the strategic focus areas

and the development programs can be

found in annex 2.

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OBJECTIVE 1: A PARTNERSHIP FOR DEMOCRACY

Denmark, through different means,

actively assists Zimbabwe in its transition

to a peaceful multi-party democracy.

First, Danish diplomatic efforts involve

active dialogue with stakeholders in

Zimbabwe and regional and international

partners. The international society must

increase its engagement for democratic

reforms and at the same time assist the

democratic institution building in

Zimbabwe. SADC plays a particularly

important role. Increased regional pres-

sure for democratic reform, spearheaded

by South Africa, will continue to be of vital

importance. Denmark fully supports

efforts both in Zimbabwe and in the region

to move the process forward. By having

Zimbabwe high on the international

agenda, the international society and

the countries who are actively engaged

can play a vital role in this transitional

period by continuing and strengthening

its engagement for democratic reforms.

As part of this global effort, Denmark

works within the EU and together with

groups of like-minded actors with a

special focus on the Nordic countries to

promote further engagement in Zimbabwe

as well as a more strategic use of restric-

tive and appropriate measures. It is the

goal that these measures with time and

following developments in Zimbabwe will

no longer be relevant – hopefully soon.

Secondly, Denmark through its develop-

ment cooperation supports a number

of initiatives in Zimbabwe that aim at

building the democratic institutions in

the country and strengthening the active

participation of ordinary Zimbabweans

in the political processes. Support for

independent democratic institutions

such as the Judicial Service Commission

and the Zimbabwe Election Commission

are key examples. Also support for a new

constitution, electoral processes and

free media are vital. Support is provided

for implementation of democratic reform

and institution building, inter alia, through

continued support for election processes

and establishment of democratic institu-

tions agreed upon in the Global Political

Agreement or other similar policy docu-

ments.

Thirdly, Denmark promotes a stronger and

more engaged involvement of key multila-

teral institutions. This includes different

branches of the UN and international

financial institutions. A proactive and

engaged UN presence in Zimbabwe

that builds on international experience

is essential to development and demo-

cratization in the country.

Finally, civil society remains a fundamental

partner for the Danish engagement for

democracy in Zimbabwe. Denmark works

actively to promote a strong civil society

constructively engaged in defending the

political rights and participation of the

ordinary Zimbabweans and working for

transition to democracy and development.

Civil society plays a vital role inter alia

in ensuring accountability and access

to information as well as promoting

inclusive democratic processes.

A number of Danish civil society organisa-

tions supported by Danida are actively

involved in strengthening democracy

at grass root level. Following years of

decreased space to manoeuvre in

Zimbabwe, reviving a strong and vibrant

civil society is vital. Opening up the space

for all Zimbabwean to participate freely in

politics requires not only new legislation

but also a shift in political culture and

trust building.

OBJECTIVE 2: GOVERNANCE AND HUMAN RIGHTS – CORNERSTONES FOR DANISH ENGAGEMENT IN ZIMBABWE

In a fragile state setting the breech

of fundamental human rights represents

a central obstruction for the creation of

a stable democracy. The national context

around governance and human rights

remains fluid and largely unpredictable

in Zimbabwe, and lends itself to continual

change.

Promotion of good governance and

respect for universal human rights is a

vital priority for the Danish partnership

with Zimbabwe, and is pursued through

different channels.

First and foremost, Denmark promotes the

respect of fundamental rights at all levels,

including through diplomacy and dialogue

with Zimbabwean stakeholders both in

11

Zimbabwe and through international

organizations. In particular, the Universal

Periodic Review (UPR), under the auspices

of the UN Human Rights Council, provides

an important platform to improve the

human rights situation in the country.

Secondly, promoting human rights is a

fundamental corner stone for the develop-

ment cooperation between Denmark and

Zimbabwe. Denmark will through targeted

development cooperation continue to

support establishment of normative

frameworks as well as both governmental

and civil society organizations working

directly with mitigating human rights’

abuses and assisting victims. Taking

the point of departure in a rights-based

approach, the strategy for Danish inter-

ventions in this field combines a persis-

tent focus on state-building with support

to civil society response and capacity.

Focus is on the rule of law and access to

justice while enhancing the rights holders’

ability to hold the Government accoun-

table by supporting civil society inter-

ventions in terms of human rights

demand, legal aid, securing property

rights, awareness rising, and enhancing

access to information and media freedom.

As a fundamental part of the support

to human rights, Denmark will focus

on women’s empowerment and gender

equality. A particular concern addressed

by the Danish engagement is the alarming

level of sexual violence against women

and girls.

Support for human rights and good

governance in a volatile context requires

that flexibility is build into the planned

and projected Danish interventions, but

it also emphasizes the responsibility

of Denmark to engage with, and support,

the fragile democratic and bridge-building

processes which have been established,

and the openings and champions of

reform within the Government of

Zimbabwe and national institutions which

have emerged during the recent past.

OBJECTIVE 3: INCLUSIVE ECONOMIC DEVELOPMENT – TOWARDS A PROSPEROUS FUTURE FOR ALL ZIMBABWEANS

Denmark recognizes the significant

potential for economic development

in Zimbabwe through increased foreign

investments, trade and private sector

development. The EU is already the

second largest trading partner for

Zimbabwe, only surpassed by neigh-

boring South Africa. Overall trade figures,

how -ever, remain fairly modest and

investments are severely hampered by

the fragile context and in particular uncer-

tainties related to property rights and

investment protection. To make the most

of the country’s potential and to attract

foreign investments, Zimbabwe needs to

provide a business-friendly environment

respectful of human rights, including a

clear legal framework for doing business

without politically biased interventions,

protection of property rights and invest-

ments and effective actions to fight

corruption.

It is a Danish priority to support economic

growth and private sector development

initiatives that allow for the general

Zimbabwean population to benefit from

economic growth and from the rich natural

resources available in the country.

Making use of the development coopera-

tion, Denmark will continue to promote

private sector driven growth, trade and

business cooperation with a particular

focus on the agricultural sector. With the

establishment of the Zimbabwe Agricul-

tural Development Trust (ZADT) access

to finance and inputs in the agricultural

sector has improved. In the coming years,

Denmark will continue to build on and

expand these activities and seek ways

to further facilitate private sector driven

growth with a strong focus on environ-

mentally sustainable and climate friendly

solutions.

Also, Denmark will gradually expand the

use of the Danida Partnership Program

with the aim of developing partnerships

between Danish and Zimbabwean private

companies. The program will facilitate

the transfer of knowledge and technology

from Danish to local partners, thereby

creating value for the companies. It is

the aim that the partnerships will contri-

bute to increased employment and have

a positive effect on local society.

Finally, Denmark actively promotes the

strengthening of the role of international

financial institutions (IFIs) in Zimbabwe

in order to facilitate economic reform and

to eventually pave the way for debt relief

through the initiation of an IMF Staff Moni-

tored Programme. Denmark also supports

the IFIs active engagement in the imple-

mentation of development activities.

12

Hence Denmark contributes to the

ZimFund, managed by the Africa Develop-

ment Bank (AfDB), which supports early

recovery of vital infrastructure, as well as

the World Bank led Analytical Multi Donor

Trust Fund (A-MDTF) that conducts studies

and assists in policy development within

prioritized areas. These interventions help

creating a better business environment

by addressing fundamental barriers for

doing business while at the same time

strengthening Zimbabwean competitive-

ness through a better infrastructure.

DANISH DEVELOPMENT COOPERATION IN A FRAGILE CONTEXT – STRATEGIC FOCUS AREAS

Development cooperation has in the initial

stages of the unity government played

a vital role in re-establishing basic social

services and in overcoming food shortage.

More recently, in support of more sus -

tainable social progress, there has been

a turn towards longer term development,

which creates better living conditions

for ordinary Zimbabweans and supports

the reform agenda. In 2012, support from

OECD countries is predominantly chan-

neled outside the government, although

it is increasingly being aligned with

government policies. Denmark would like

to see normalization where direct support

through government channels would again

be viable. In line with the New Deal for

engagement in fragile states, Denmark

will work towards supporting inclusive,

country led and country owned transition

out of fragility in Zimbabwe in the spirit

of mutual accountability.

Steps have been taken in previous years

to reduce the number of partners in

the Danish development program and

to concentrate on fewer, thematic areas.

Support is aligned to the national develop-

ment priorities as set out in the Medium

Term Plan 2011-2015 (MTP) and centered

on the following three focused com -

ponents:

• Private sector development within

agriculture;

• Infrastructure rehabilitation and;

• Good governance, democracy and

human rights.

Through the interventions Denmark hopes

to help ending food shortage and stands

ready to consider assistance should new

humanitarian crisis occur. On top of the

bilateral interventions a number of Danish

civil society and business organizations

actively engage in Zimbabwe through

targeted development and private sector

programmes. The bilateral interventions

are coordinated with other bilateral devel-

opment partners. However, Denmark

would support that a broader coordination

framework involving all main stakeholders

– including Zimbabwean and multilateral

institutions - is developed, facilitating

further coordination and alignment to

government policies. A Joint Assistance

Strategy for Zimbabwe is currently not

available, but Denmark would support

that such a framework is established

and flexibly adapt to this – if possible as

part of a joint EU programming exercise.

Danish development assistance to

Zimbabwe is guided by a number of

principles and strategic considerations

building on the Danish strategy for devel-

opment cooperation outlined below:

For a more detailed introduction to Danish

development programs in Zimbabwe,

see annex 2.

13

Partnership and participation: Based on the New Deal for engagement in fragile states, Denmark will work together with Zimbabwean partners, including government entities, civil society organisations and the private sector and align interventions to national policies. Denmark stands ready to channel funds through government institutions when circumstances permit.

Rights based approach: Denmark contributes to the empowerment of citizens and civil society, for them to claim their legitimate rights to better living conditions, democracy and social progress. Particular concerns are protection of human rights, including non-discrimination and rights. The opportunities for women that are vital drivers of change in the democratic process, receive high attention in the Danish development cooperation.

Bridge building and institution building: Denmark will assist in the creation of strong democratic institutions and support reconciliation and constructive dialogue.

Transformative efforts: Denmark will support interventions that create visible and measurable change for the Zimbab-wean population and maintain focus on realization of the significant economic potential through improved enabling environments for private sector and job creation.

FIGURE 2 PRINCIPLES AND STRATEGIC CONSIDERATIONS FOR DANISH DEVELOPMENT ASSISTANCE TO ZIMBABWE

14

RISKS, SCENARIOS AND IMPLICATIONS FOR THE DANISH ENGAGEMENT

There is a looming risk that Zimbabwe

could fall back into crisis if transition

to democracy and development does

not gain pace. In 2012, with progress

but no real breakthrough in the imple-

mentation of democratic reform, the

EU and other Western countries have

maintained certain restrictive measures

on Zimbabwe to maintain the pressure

for reform.

BREAKTHROUGH IN REFORM PROCESS

Referendum and free and fair elections carried out without violence leading to a democratically elected government

FIGURE 3SCENARIOS AND POSSIBLE IMPLICATIONS FOR DANISH DEVELOPMENT COOPERATION IN ZIMBABWE

Significant increase in development assistance, longer term focus, funds partly channeled through government

STATUS QUO

Continued positive developments. Government of unity and preparation of democratic elections continue

Gradual increase in development assistance, longer term focus, gradual move towards channeling funds through government

SET-BACK IN REFORM PROCESS

Reform forces or demo-cratically elected excluded from govern-ment and/or elections below international standards with widespread violence and intimidation

Continuation of support, but shorter term focus and funds channeled through civil society

Operating in such an uncertain political

environment it is vital that Danish engage-

ment takes into consideration different

risks and scenarios for developments

and allows flexibility to adapt to these.

The main risks are linked to the possible

derail of the democratic process and

subsequent consequences for stability

and economic development. Furthermore,

continued increase in inequality and

exclusion of the majority and in particular

youth from the formal work-force may

in the longer term undermine stability

in the country.

The fundamental scenarios and envisaged

consequences for the provision of deve-

lopment assistance are outlined below:

15

A number of factors will determine the

direction of developments in Zimbabwe,

including in particular the ongoing power

struggle both within and between political

parties and between reform forces and

those that would like to see democratic

reform stalled. It is difficult to foresee

the outcome of the current political

processes, including the position and

future leadership of ZANU-PF. Most likely

Zimbabwe will no matter the outcome

of the immediate political processes face

important challenges on the route to

democracy also in the coming years.

Transition takes time and so does building

a democratic culture founded in strong

and independent institutions. Further-

more, with significant continued support

for both main parties and the possibility

of new emerging players entering the

political scene some sort of power sharing

arrangement, reconciliation or coalition

may very well be part of the political future

of Zimbabwe too.

To mitigate risks for a negative and

undemocratic development, Denmark

will continue to pursue a multifaceted

approach. First of all, Denmark will work

for clear statements of the international

society in support of any government that

is democratically elected according to

international best practice and that

supports and practices universal human

rights.

Furthermore, Denmark will support

and encourage a strengthened regional

engagement in Zimbabwe through

dialogue and economic cooperation.

A stable Zimbabwe will benefit all coun-

tries in the region, while a Zimbabwe

in internal conflict will create negative

spill-over effects for the entire region.

Also, assisting development and institu-

tion building will help building a solid

foundation and make it more difficult

to undermine continued democratic

transition. Finally, Denmark will continue

to support efforts to create reconciliation

through promoting bridge building and

dialogue across the political divide in

Zimbabwe.

The Danish policy towards Zimbabwe

rests on the fundamental premise that the

risks of not engaging in the current crucial

transition process is greater than the

risk of engaging – both for the people

of Zimbabwe and for the stability of the

region.

In carrying out this strategy, Denmark will

follow developments in Zimbabwe closely

and make adjustments in its partnership

along the way in order to minimize risks

and optimize the chance for the country

to continue its path towards a democratic,

peaceful and prosperous Zimbabwe that

is respectful of human rights.

16

ANNEX 1: KEY ECONOMIC DATA FOR ZIMBABWE

KEY ECONOMIC DATA UNIT STATISTICS SOURCE

Population Million 13 WDR

GNI per capita USD 460 WDR

Annual economic growth (GDP) % 9.3 WB

Foreign Direct Investments USD mil. 60 WDR

Gross domestic product USD mil. 7,474 WDF

Economic sectors: Value added (% of GDP)

Agriculture % 18 WDR

Industry % 29 WDR

Services % 53 WDR

Development assistance per capita USD 59 WDR

Foreign debt USD mil. 9,018 IMF

Foreign debt as % of GDP % 121.3 IMF

KEY SOCIAL DATA UNIT STATISTICS SOURCE

Population growth (annual average) % 0.2 WDR

Life expectancy Years 51.4 HDR

Infant mortality (number of deaths per 1,000 births during the first five year) Figure 90 WDR

Access to clean drinking water (percentage without access) % 18 HDR

Number of doctors (per 100,000 inhabitants) Figure 2 HDR

People btw. 15-49 years living with HIV % 14.3 WDR

Adult literacy rate (expected to fall in coming years) % 92 WDR

Ratio of girls to boys enrolled in primary education % 97 WDR

Military expenditure (percentage of GDP) % 1.3 IMF

17

The data above is collected from the most recent international reports, but because of lack of updated statically material the data is in some cases of older date.

Source:HDR UNDP (2010) Human Development Report: The Real Wealth of Nations,

Pathways to Human DevelopmentHDR UNDP (2011) Human Development Report: Sustainability and Equity: A Better Future for All IMF International Monetary Fund (September 2012) IMF IMF Executive Board Concludes 2012

Article IV Consultation with Zimbabwe. Draft Public Information Notice (PIN No. 12/113)WDR World Bank (2011) World Development Report: Conflict: Development and SecurityWDR World Bank (2012) World Development Report: Gender Equality and DevelopmentWB World Development Indicators database - Country Data Profile for Zimbabwe (2010)

KEY HUMAN RIGHTS & SECURITY DATA UNIT STATISTICS SOURCE

Human rights violations (1 is fewest human right violations, 5 is most human rights violations) Score (1-5) 4 HDR

Homicide rate (per 100 000 people) Number 8.7 HDR

Political engagement (% of people who voiced opinion to public officials % 10 HDR

Corruption Victims (% of people who faced a bribe situation in the last year) % 33 HDR

Perception of safety % 41 HDR

Press freedom (a lower score indicates more press freedoms) % 46.5 HDR

18

ANNEX 2: STRATEGIC FOCUS AREAS, RESULTS AND INDICATORS

Danish development cooperation focuses

on private sector development within

1. agriculture;

2. infrastructure rehabilitation and

3. good governance, democracy

and human rights.

All Danish development programs in

Zimbabwe are fundamentally based on

the rights of the ordinary Zimbabwean

to a better life in a developed, peaceful

and democratic setting. Thus, there is

an intrinsic link between support for

economic development in Zimbabwe and

the active Danish engagement to promote

democratic reform and respect for

universal human rights.

Danish development cooperation has

gradually increased since 2009. Provided

that there is a positive democratic devel-

opment, Danish support is expected to

reach a level of approximately 200 million

DKK in yearly disbursements in 2015.

The distribution of the Danish support

on the strategic focus areas mentioned

below will depend on the development

in each of the areas.

Below strategic focus areas, results and

indicators for the activities are presented.

In Zimbabwe, the agricultural sector

and affiliated manufacturing represents

approximately 40 % of GNP. Two thirds

of the country’s population lives in rural

areas – with a vast majority of these either

categorized as poor or very poor. The

agricultural sector therefore holds signi-

ficant potential for further development

of Zimbabwe and for the livelihood of its

citizens. Following the turbulent years

with land reform and a general economic

melt-down, the agriculture sector still

suffers from low productivity, lack

of liquidity and financing as well as

a dysfunctional value chain.

Since 2011 the Zimbabwe Agriculture

Development Trust (ZADT) has provided

financial capital to commercial banks,

which on-lend to appropriate agro-input

and output value chain actors. The credit

facility offers a lower interest rate

and a possible longer payback period

than otherwise available in the market.

The Danish supported credit facility has

as its objective to efficiently support

smallholder farmers. Clients have busi-

ness dealings with smallholder farmers

and include agro-dealers, whole sellers,

transporters, farmers, processors, trans-

porters and other service providers.

Clients are mainly small and medium

enterprises, which procure from, sell to

and distribute to low income groups and

are engaged in rural economic activities.

In this way smallholder farmers are

secured access to input for their pro duc-

tion and a market for their produce. The

transaction costs to supply smallholder

farmers with credit is, at least initially,

Denmark will work to contribute to the following results: • Revitalisation of the agricultural sector through the provision of an

accessible and competitive credit facility for actors in the value chain.• Substantial capacity building for actors in the agricultural value chain

to enable recipients to further boost commercial activities.• Undertake innovative interventions supporting activities, sectors or value

chains that in particular possess competitive advantages and have potential for income generation and job creation.

Indicators: Increased commercial activities in the agricultural sector through provi-sion of a credit facility; Increased capacity and know-how through training and support to a network of more than 700 agricultural dealers; Danish support to two specific value chains with specific focus on job creation and income generation.

1. PRIVATE SECTOR DEVELOPMENT IN AGRICULTURE

19

not considered feasible. As all clients have

direct links with smallholder farmers more

than 15,000 smallholders have already

enjoyed the benefits from the credit faci-

lity in its first year of operation, including

increases in income through the provided

access to input and markets. It is expected

that this figure will rise to more than

80,000 smallholders in the next phase.

Denmark will also undertake studies

of promising value chains and carry out

pilot interventions involving small holder

farmers. A key goal is to revitalize value

chains which hold competitive advan-

tages, are of particular importance to

the Zimbabwe economy and have special

potential for income generation and

job creation. Matching grants for new

technologies, products or markets as

well as other financial products, such

as guaranties, leasing arrangements will

be considered and applied if feasible.

In addition, Denmark will continue to

support capacity building of actors in the

value chain in order for the market based

programmes to become more sustainable

and further increase in scope.

There continues to be need for support

for rehabilitation of infrastructure in

Zimbabwe and for international guidance

on key public management issues in

a situation where Zimbabwe is unable

to draw on favorable loans from the inter-

national financial institutions and where

public finance is overstretched. Danish

support is together with support from

other bilateral donors vital to ensure

access to clean water and power, which

is fundamental for both social services

such as schools and clinics and for private

sector competitiveness. The support is

however expected to be phased out when

broader access to loans is available.

The funding is channeled through two

multi-donor funds that Denmark has been

instrumental in establishing namely

the Zimbabwe Multi-Donor Trust Fund

(ZimFund) managed by the African Devel-

opment Bank (AfDB), and the Analytical

Multi-Donor Trust Fund (A-MDTF) managed

by the World Bank.

The interventions of the two funds present

good platforms for dialogue with the

Government on national priorities – which

will be instrumental in promoting more

concrete and formal cooperation with

the Government. The funds furthermore

ensure that the World Bank and the African

Development Bank are able to play an

active role in Zimbabwe in spite of the

country’s outstanding arrears to the two

banks. Denmark pays particular attention

to ensuring that an environmental and

climate friendly path is pursued.

Denmark will work to contribute to the following results: • Rehabilitation of critical nationally prioritized infrastructure which affects

the livelihood of ordinary Zimbabweans as well as improve conditions for private sector driven growth.

• Improved policy development within prioritized areas such as economic management and governance, agriculture and infrastructure.

• Strengthened focus on the potential for renewable energy in Zimbabwe.

Indicators: Increased reliability, availability and quality of water supply for 4 million Zimbabweans in urban areas targeted by ZimFund; Improved total power supply in an environmental friendly manner; Implementation of a study on the potential for renewable energy in Zimbabwe.

2. INFRASTRUCTURE REHABILITATION

20

ZimFund. The infrastructure in Zimbabwe

suffers from years of neglect. The need for

improvements is enormous and estimated

by AfDB to warrant investments of up to

14 billion USD for immediate rehabilita-

tion while longer term need amount to

some 40 billion USD. However, there is

no immediate perspective for financing

large scale infrastructure investments

through loans due to the country’s

outstanding arrears. The ZimFund

supports rehabilitation of nationally priori-

tized infrastructure projects while taking

into consideration environmental concerns

and climate change. Future investments

will depend on where there is the greatest

potential for gains in terms of improved

livelihood.

A-MDTF. Effective policy development in

the transition period continues to be of

importance. The low capacity and limited

staff resources in Government institutions

means that the need for analytical work on

public sector aspects will continue – and

may even increase after elections and the

formation of a new political establishment.

The A-MDTF conducts studies and offers

technical assistance within three priori-

tized areas: Economic management and

governance; agriculture, and; infrastruc-

ture. New priority areas may be added,

depending on developments. The fund

coordinates and cooperates with the

Government on a number of issues

including contributions to Government

planning, development of new policies

and the budget. This will be crucial on

the path towards establishment of an IMF

Staff Monitored Programme. The dialogue

between the A-MDTF and the Government

also includes sensitive issues such as

a review of public salaries and the public

wage bill as well as a review of the land

reform (when the political environment

permits).

In a situation where Zimbabwe again

would have access to larger-scale

international finance for infrastructure

rehabilitation the Danish bilateral

engagement would be reconsidered.

Zimbabwe continues to face significant

challenges in the transition towards

democracy and violations of human rights

and intimidation remains widespread.

Taking the point of departure in a rights-

based approach, the strategy proposed

for the component combines a persistent

focus on state-building with support

to civil society response and capacity

building. It allows for flexibility between

immediate and long term activities,

according to changes in the political

environment in Zimbabwe.

Denmark will work to contribute to the following results: • A victim’s friendly and independent justice system free of political interference

and with limited corruption based on the strategy of the judicial Service Commission.

• Effective and transparent monitoring of human rights and provision of legal aid for victims of human rights abuse.

• Increased access to free and independent media, including in the rural areas.• Democratic institution building based on a new democratic constitution, including

the Zimbabwe Election Commission and the joint Monitoring Organ (JOMIC)

Indicators: A nation-wide case-management system significantly reduces the case-back-lock in the judiciary, reduction in monitored human rights violations, and improved access to media in rural areas, constitution agreed upon and implemented.

3. GOOD GOVERNANCE, DEMOCRACY AND HUMAN RIGHTS

21

Access to Justice and improved human

rights: The programme has supported

the development of a strategy and code

of ethics for the judiciary that suggests

bold moves towards further independence

and reduction of widespread corruption.

Moving to swift implementation of the

strategy, the programme provides support

for increased access to justice through

a strengthened and victim friendly justice

system. The support focuses on enhanced

capacity in the justice system to process

human rights cases and facilitate adher-

ence to the principles of separation of

state powers and judicial independence.

The contributions will be channeled

partially through civil society organiza-

tions, to strengthen monitoring and public

litigation related to human rights cases,

and partially in support of national entities

such as the Judicial Service Commission

and the Ministry of Justice with the

assistance of UNICEF and the Danish

Institute for Human Rights.

Access to free media: The effort aims

at strengthening citizens’ ability to parti-

cipate in the development of Zimbabwean

society enhanced by building an indepen-

dent and vibrant media sector (both main-

stream and alternative) which: a) serves

as a platform for information, dialogue

and communication open to all sectors

of society (particularly reaching disadvan-

taged groups); and b) produces relevant,

critical and balanced information as well

as holds those in power accountable to

the public. Particular attention will be

given to provision of information for the

large proportion of society, currently

excluded from accessing information,

including in the rural areas. Also,

emphasis will be given to possibilities

of exploring new ways of reaching

the public, including social media and

alternative radio broadcasting.

Democratic reform processes: Continued

support will be provided for implementa-

tion of democratic reform and institution

building, inter alia, through continued

support for election processes and

establishment of democratic institutions

agreed upon in the Global Political Agree-

ment or other similar policy documents.

This sub-component is particularly

dependent on actual developments on

the ground and must include significant

flexibility to reflect fluctuations in the

political environment and emerging

needs.

22

DEVELOPMENT OBJECTIVETo facilitate development of a democratic Zimbabwe with respect for

human rights and inclusive, private sector driven economic growth

Support to the Zimbabwe Agricultural Development Trust (ZADT) for development of agri-business along promising value chains

World Bank led analyses enable policy develop-ment within priority areas, including infra-structure and public financial management

Contribution to the Create Fund that support agro businesses

Rehabilitation of nationally prioritized, infrastructure, including water, sanitation and power through the Africa Development Bank

Access to Justice for all Zimbabwe-ans though support of state institutions and NGO’s working with the judiciary as well as fighting gender based, sexual violence

Democratic and accountable governance institutions and practises promo-ted, including democratic commissions and free media

COMPONENT 1Improved living conditions for smallholding farming families through increased capacity and investments

COMPONENT 2 Visible and measurable improvement in vital infrastructure

COMPONENT 3 Strengthened democratic processes and institutions in Zimbabwe, where the rule of law prevails and where fundamental human rights and freedoms are respected.

THE DANISH DEVELOPMENT COOPERATION PROGRAM IN ZIMBABWE FOR 2013–2015

23

ANNEX 3: MAIN FOCUS AREAS OF DONORS IN ZIMBABWE

Agriculture

Private sector development in agriculture

Infrastructure, i.a. energy and water/sanitation

Good Governance

and Democracy

Justice sector Health Education

Food security/

Humanitarian Assistance

Australia X X X

Canada X X

Denmark X X X X

EC X X X X X X

Germany X X X X

Japan X X X

Netherlands X

Norway X X X

Sweden X X X X

US X X X X X

UK X X X X X X

While Danish support to Zimbabwe does not include social sector

programmes per se, significant support for social sectors is included

through the Zimfund (water and sanitation) and through support for

judiciary and for fighting violence against women and children (including

health clinics for victims of sexual violence). Furthermore significant

support for health and education is already provided by other key donors.

24

ANNEX 4: ZIMBABWE’S MEDIUM TERM PLAN 2011-2015

The Medium Term Plan 2011-2015 (MTP)

is the premier economic and social policy

document of Zimbabwe. It responds to

the mandate set out in Article III of the

Global Political Agreement to support

the restoration of economic stability and

growth in Zimbabwe. It builds on the

founda tions laid by the Short Term

Emergency Recovery Programme (STERP,

2009) and the three year Macroeconomic

Policy and Budget Framework (STERP II).

The MTP will guide all other Government

policy documents and sets out the

national priorities and investment

programmes for the five year period

2011-2015.

The MTP’s main goal is to transform the

economy, reduce poverty, create jobs,

maintain macroeconomic stability and

restore the economy’s capacity to produce

goods and services competitively. The MTP

will build upon the gains achieved since

the launch of STERP in March 2009. The

main target of the MTP is to ensure that

the economy remains on a sustainable

growth path. The Plan is targeting an

average growth of 7.1% for the period,

2011-2015.

The MTP emphasises the pivotal role

of the private sector as an engine for

economic recovery. This will necessitate

far-reaching initiatives and reforms to

reduce the risk for investors and make

Zimbabwe an attractive investment desti-

nation. The private sector led economic

recovery will be driven by key sectors such

as agriculture, manufacturing, mining,

tourism, finance, infrastructure develop-

ment and small and medium enterprises.

Important areas for sustained growth

include access to capital (by better alig-

ning the financial sector to the needs

of the productive sector), adoption of new

technologies (including ICT) and develop-

ment of knowledge-based industries.

One of the key focus areas of the MTP is to

create an enabling and conducive environ-

ment for sustainable employment creation

and poverty reduction. The plan is targe-

ting to achieve average employment

creation rates of 6% per annum. Emphasis

will also be given to social protection and

empowerment of marginalised members

of society, increased access and utilisation

of comprehensive quality primary health

care services and referral facilities (by

100 percent by 2015), promotion of

gender parity at secondary and tertiary

levels, universal primary education, prote-

ction of poor and vulnerable households.

The success of the MTP will depend

on, i.a., the availability of a robust infra-

structure. Infrastructure is a key enabler

for economic recovery, growth and trans-

formation. Key infrastructure priorities

include energy, water and sanitation,

transport, housing and construction

as well as information communication

and technology (ICTs).

Good governance is also integral to the

successful implementation of the MTP.

Cooperation among civil society organiza-

tions, the private sector and the govern-

ment is essential to ensure strong institu-

tions and effective service delivery.

The objective will be to implement good

governance principles across all sectors,

private as well as public. The MTP also

aims at mainstreaming gender into all

sectors, in order to eliminate negative

economic, social and cultural practices

that impede equity of the sexes.

25

ANNEX 5: PROGRESS TOWARDS THE MDGS IN ZIMBABWE

MDG INDICATORSPrevious

levelCurrent

level MDG objectives

(2015)

GOAL 1: ERADICATE EXTREME POVERTY AND HUNGER

Proportion of population below total consumption poverty line 55% (1995) 72% (2003) Halve

Human Poverty Index 40.3% (2005) 34% (2009) Halve

Percentage of underweight under age five 17% (2005) 15% (2010) Reduce by two-thirds

Proportion of population below food poverty line 29% (1995) 58% (2003) Halve

GOAL 2: ACHIEVE UNIVERSAL PRIMARY EDUCATION

Access to school 81.9% (1994) 91% (2009) Achieve 100%

Primary school completion rate 82.6% (1996) 68.2% (2006) Achieve 100%

Literacy rate of 15-24 year-olds, women and men 85% (1994)

91% (2009) (falling) Achieve 100%

GOAL 3: PROMOTE GENDER EQUALITY AND EMPOWERMENT OF WOMEN

Proportion of seats in national parliament occupied by women 14% (1995) 18.55% (2009) Achieve 50%

GOAL 4: REDUCE CHILD MORTALITY

Mortality rate for children under 5 years old (per 1000 live births) 82 (2005) 86 (2009)

Reduce by two-thirds

26

MDG INDICATORSPrevious

levelCurrent

level MDG objectives

(2015)

GOAL 5: IMPROVE MATERNAL HEALTH

Maternal mortality (ratio per 100,000 live births) 555 (2006) 725 (2007)

Reduce by three-quarters

Proportion of births attended by skilled health personnel 69% (2009) Achieve 100%

GOAL 6: COMBAT HIV/AIDS, MALARIA AND OTHER DISEASES

HIV/Aids prevalence in population 15-24 years old 23.7% (2003) 14.3% (2009) Halt and reverse

GOAL 7: ENSURE ENVIRONMENTAL SUSTAINABILITY

Percentage of rural population with improved sanitation 60% (1999) 30.5% (2006) Achieve 71%

Percentage of rural population with improved access to water 70% (1999) 61% (2009) Achieve 85%

Sources: UNDP(2010) MDG Status Report Zimbabwe, Government of Zimbabwe and UNs Country Team (2010) Country Analysis

Danmark – Zimbabwe Partnership Policy 2013-2015March 2013

Publisher: Ministry of Foreign Affairs of DenmarkAsiatisk Plads 21448 Copenhagen KDenmark

Phone +45 33 92 00 00Fax +45 32 54 05 33E-mail um@um.dkInternet www.um.dk

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