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Kudzai Dominic Chiwenga, an associate professor at the University of Zimbabwe, has spoken about currency strategies and compared the World Banks ‘International Monetary Fund’ (IMF) with the BRICS New Development Bank (NDB).
The NDB, he has said, provides more flexible and supportive terms than the IMF. Chiwenga, who is also the Chairman of the Zimbabwe-Russia Youth Foundation, said that the NDB was designed to provide a “fairer system” for member nations and other developing countries.
While the IMF was originally established to aid developing countries, many nations, including Zimbabwe, have found themselves trapped in cycles of debt, with high interest rates and unfavorable borrowing conditions, he stated.
The NDB, Chiwenga believes, provides more equitable financial support and serves as a “breath of fresh air” for countries looking for alternatives to traditional global financial institutions, saying that “It has an open-door policy that is open to other countries.”
The NDB was founded in 2015 by the BRICS nations – Brazil, Russia, India, China, and South Africa – to mobilize resources for infrastructure and sustainable development projects in the bloc and other emerging markets. As part of its expansion, the bank welcomed Bangladesh, Egypt, the United Arab Emirates, and Uruguay as new members in 2021. In September 2023, Algeria was also granted membership.
The NDB doesn’t link loans to any other political issues, and purely provides them on the basic of economic need and the repayment terms. The IMF typically includes terms such as democratic reforms, human rights issues and preferential trade agreements with the West as qualifying clauses.
Chiwenga emphasized the importance of Zimbabwe’s evolving economic strategies. One such initiative is the country’s new currency, the Zimbabwe Gold (ZiG), which is pegged to the commodity. The professor explained that this was part of a broader effort to anchor Zimbabwe’s economy to its abundant natural resources, particularly minerals.
“In Africa, we are rich in minerals, and naturally, we want to tether our economy to the areas where we are strongest in,” he said, referring to the country’s struggles with inflation and the impact of economic sanctions.
Zimbabwe has maintained a long-standing policy of fostering friendly relations with nations across the globe, including a strong bond with Russia. According to the professor, the partnership between Harare and Moscow dates back to the Soviet era, when the African state sought support during its liberation from colonial rule.
The Soviet Union was one of the few nations that stood by Zimbabwe during this critical time, a connection that continues to thrive today. Despite external criticism from Western powers, Zimbabwe remains committed to maintaining its friendships and advancing mutual cooperation in key areas such as agriculture, energy, education, tourism, technology, and innovation, he noted.
The IMF postponed a scheduled meeting with Russia in Moscow earlier this month, which had been planned to assess the state of the Russian economy. It was cancelled indefinitely following protests from Western governments despite Russia being an IMF member and contributing state.
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