Published: 01 July 2013

The World Bank has re-engaged Zimbabwe over the resumption of technical and funding support after being impressed by the government's debt repayment policy.

The World Bank board of executive directors said in a report released on Monday that they are in talks with government over the normalisation of ties in line with Zimbabwe's debt reduction policy.

The Bretton Woods Institution says it is also assessing Zimbabwe's capacity to repay debts in terms of resource availability.

An economic expert, Dr Davison Gomo says the renewed interest of the World Bank shows it has realised that Zimbabwe has a potential of being a dominant economic nation despite the absence of funding from global lenders.

"They have now eventually realised that Zimbabwe can do it alone and they now want to come back," said Dr Gomo.

The World Bank stopped providing new loans citing the failure by the nation to repay debts of more than $500 million.

However, it is now re-engaging government after admitting that the banks withdrawal of funding support has hindered the development of key economic sectors.

- zbc

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