Zimbabwe

Part of the debate – in the House of Lords at 2:59 pm on 8 July 2008.

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Photo of Lord Malloch-Brown Lord Malloch-Brown Minister of State, Foreign & Commonwealth Office, Minister of State (Africa, Asia and the UN) 2:59, 8 July 2008

My Lords, I welcome the opportunity to clarify both points. On the first, planning has been led by the World Bank and other multilateral institutions, and has been co-ordinated on the bilateral side by Sweden, to make sure that plans are in place for the hoped-for period of recovery of the country. There has been an estimate that that would cost at least $1 billion a year for five years. Not having seen the books of Zimbabwe, that is still a bit of a rough estimate. There is no doubt that any new Government will face an immediate crisis in trying to establish their political authority while ending a hyperinflation running at millions of per cent. That would make ruling Weimar Germany look positively easy by comparison.

Secondly, we are trying to be very clear with companies, specifically on new investment. I can give a very simple answer; we would discourage any company from undertaking new investment at this time on political, commercial and ethical grounds. If there was more time, I would be happy to provide the noble Lord with the arguments that we are making on sanctions, which, at their simplest, remain about how we can target the companies and individuals around Mr Mugabe, while protecting the people at large. Not all the activities of every British company fall into the second category. Some preserve jobs and well-being for Zimbabweans without directly supporting the regime.