US introduces Bill to repeal ZDERA

The United States of America has introduced a Bill (H.R. 5300) on foreign policy provisions that include repealing Zimbabwe Democracy Recovery Act (ZDERA) which imposed sanctions on the Southern African country.

However, the Bill attaches conditions for Zimbabwe to settle compensation arrears before benefiting from expanded IMF/ World Bank funding.

At the same time, it emphasizes U.S. intent to boost trade and investment with Africa.

More details:

📑 Key Highlight: Repealing ZDERA

-Section 303: The bill proposes repealing the Zimbabwe Democracy and Economic Recovery Act of 2001 (ZDERA).

-ZDERA, enacted in 2001, imposed restrictions on U.S. support for Zimbabwe, particularly regarding access to international financial institutions like the IMF and World Bank.

📌 Condition for Further Funding

-Although ZDERA would be repealed, the bill states that the U.S. will not support new or expanded IMF/World Bank funding for Zimbabwe unless Zimbabwe commits within 12 months to:
-Settle outstanding arrears under the Global
-Compensation Deed, adjusted for inflation.

-Ensure payments are not made in Zimbabwe-issued securities.

Non-compliance would result in an immediate stop to U.S. support for such funding.

🌍 Section 304: Strengthening Commercial Diplomacy in Africa

Sets a policy for the U.S. to:
-Promote and facilitate two-way trade and investment with African countries.
-Strengthen commercial ties and support economic growth.