Zimbabwe

Lord Chidgey Excerpts

Wednesday 2nd November 2016 Lords Chamber

[Baroness Goldie]

The noble Lord is correct to refer to a grave economic situation in Zimbabwe. That is part of the United Kingdom’s general arena of concern, which is regularly relayed in diplomatic engagement. When the decision was made by Zimbabwe to issue the dollar bond notes, it raised memories of the hyperinflation of 2008 which caused a loss of confidence in the banking sector. However, ultimately it is not for the United Kingdom to interfere in either the microeconomic policy of Zimbabwe or its fiscal and financial policy. All the United Kingdom can do is urge Zimbabwe to engage in a much-needed and overdue programme of political, economic, social and governance reform.

[Lord Chidgey (LD)]

My Lords, the Minister will be aware that Zimbabwe is the world’s sixth-largest producer of diamonds by volume, yet three-quarters of its population are living in poverty. Apparently some $15 billion-worth of government-owned diamond processing has gone off-budget. In response, the US Government have introduced sanctions and frozen the assets of companies involved for, as they put it, undermining democracy and facilitating corruption. What measures have the United Kingdom Government taken to support these actions, and what has been the outcome?

[Baroness Goldie]

The noble Lord will be aware that there is a sanctions embargo against Zimbabwe, and active sanctions against President Mugabe, his wife, Grace, and the company Zimbabwe Defence Industries. The UK is party to that EU embargo. As I said in my earlier response to the noble Lord on the Cross Benches, the United Kingdom Government cannot interfere with the internal fiscal or economic policy of Zimbabwe; all we can do is urge and make the case for overdue reform.