Zimbabwe

Lord St John of Bletso Excerpts

Wednesday 2nd November 2016 Lords Chamber

[Baroness Goldie]

South Africa and the United Kingdom have enjoyed regular exchanges and have co-operated on a range of issues. That includes within the South African development community as well as outside, such as with Burundi and Sudan. Increasingly, we have exchanged assessments of Zimbabwe. It is important that the United Kingdom endeavours to maintain diplomatic dialogue, not just with the other African countries but with Zimbabwe itself. As the noble Lord will no doubt be aware, the United Kingdom Government have been instrumental in making important resource available to Zimbabwe by making payments not to the Zimbabwean Government but through the medium of non-governmental organisations and our implementing partners.

[Lord St John of Bletso (CB)]

My Lords, does the Minister agree that the recent disastrous decision to print bond notes in Zimbabwe will re-stoke fears of hyperinflation in the country and lead to another escalation of migration into South Africa? On a day when President Mugabe is meeting Jacob Zuma and at a time when South Africa is not being paid for the electricity supplied by it, what measures can be taken to avert the disastrous impact of an inevitable meltdown in Zimbabwe?

[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.