IMF reveals the economic situation in Zimbabwe is very difficult

IMF reveals the economic situation in Zimbabwe is very difficult

Zimbabwe was once one of Africa’s most promising economies but suffered decades of decline as former President Robert Mugabe pursued policies that included the violent seizure of white-owned commercial farms and money-printing that led to hyperinflation.

Zimbabwe’s economic growth is threatened by high government spending, an untenable foreign exchange regime and inadequate reforms, a senior International Monetary Fund (IMF) official said.

Mugabe, 93, resigned on Tuesday after nearly four decades in power following pressure from the military, the ruling ZANU-PF party and the general population.New ZANU-PF leader Emmerson Mnangagwa is expected to be sworn in as Zimbabwe’s president on Friday.Mnangagwa has promised to bring massive investment into the country and hope to return the Southern African Nation to its former position as the food basket of the continent.

Zimbabwe has not been able to borrow from international lenders since 1999 when it started defaulting on its debt and has $1.75 billion rand in foreign arrears.“The economic situation in Zimbabwe remains very difficult,” Gene Leon, IMF’s mission chief for Zimbabwe said in a statement to Reuters late on Wednesday.