Production of an opinion paper on the developmental impacts of recently gazetted Afrexim Bank loans: Zimbabwe Coalition on Debt and Development (ZIMCODD)

Deadline: 4 March 2021(5pm)

The Zimbabwe Coalition on Debt and Development is seeking qualified research consultant(s) to produce a research-backed opinion paper on the developmental impacts of recently gazetted Afrexim Bank loans.

About ZIMCODD

The Zimbabwe Coalition on Debt and Development (ZIMCODD) is a socio – economic justice coalition established in February 2000 to facilitate citizens` involvement in making pro–people public policy. ZIMCODD views indebtedness, the unfair global trade regime and lack of democratic people– centred economic governance as root causes of the socio – economic crises in Zimbabwe and the world at large.

Vision - Socio-economic justice in Zimbabwe anchored on a vibrant people-based movement. Mission - To take action against the debt burden and socioeconomic injustices through movement building and alternative policy formulation.

Introduction

The publication of the terms and conditions for all public loans is a requirement in terms of Section 300 (3) of the supreme Constitution of Zimbabwe, which is fully provided for under the Public Finance Management Act. Accordingly, the Ministry of Finance and Economic Development recently published the terms of the US$1, 4 billion loans the country secured since 2017 from the Cairo based African Export and Import Bank (Afrexim Bank) for strategic imports and local currency support. Against this background, ZIMCODD seeks to produce a research-backed opinion paper on the developmental impacts of the US$1.4billion Gazetted Afrexim Bank Loans. The generated knowledge will be used to inform the policy makers, stimulate debt debate among citizens and researchers so as to attain robust and sustainable debt management oversight.

Background and Context

Zimbabwe is in debt distress and its economy has continued on a downward trend characterised by persistent fiscal deficits, high and unsustainable external and domestic debt and low foreign and domestic investor confidence which have adversely impacted on the injection of foreign capital flows into the economy. There are various ways through which a country can borrow, including direct loans and resource backed loans, provided by China and Afrexim Bank to African States. These loans have increasingly become a feasible alternative for Zimbabwe which has failed to access credit from IMF and the World Bank since 1999 after defaulting on its debt obligations. It is widely acknowledged that credit is important in helping in the development and growth of the economy however, for this to be achievable, borrowers must live within their means and borrow only what they can repay lest they plunge into debt distress. To reduce the risk of over-borrowing and debt distress, it is critical to promote transparency and accountability in loan/debt contraction. To this end, there is a need to comprehensively interrogate the efficacy of the recently published US$ 1.4 billion loans from Africa Export and Import Bank (Afreximbank) so as to determine their developmental impacts in Zimbabwe. The paper should unpack the nature of the loans, their immediate and future impact from a broader macroeconomic perspective. The sustainability of resource backed loans should also be assessed in order to generate debate that will inform policy makers, development practitioners and bureaucrats on the effects of debt on development. This will go a long way in infusing debt transparency and accountability as it will also help answering some of the questions various stakeholders including members of parliament have concerning loans acquired from Afreximbank. Retrogressive loans have adverse impacts on national development and growth, they are a conduit pipe of neoliberalism as they propel the lender hegemonic power over the borrowing state. Most of the loans that the country has incurred fall under the concept of the debt-trap diplomacy that is meant to infuse a dependency syndrome. The recent spike in dishing out resource backed loans by China and Afreximbank to African states is a call for concern and the published US$1.4billion loans are by no chance an exception. Such loans project the reminiscence of a scramble for Africa using debt as a snare. Thus, a comprehensive and astute paper which presents possible policy interventions that contribute to the development of a robust investment policy which promotes debt transparency is necessary to wean Zimbabwe from the debt trap.

Aim

The aim of this assignment is to assess the medium to long term developmental impacts of recently gazetted Afrexim Bank Loans (Government Gazette Extraordinary: Vol. XCIX. No.20; 12th February, 2021)

Objectives

The research-backed opinion paper should satisfy the following objectives: To track, and assess, the efficacy of public expenditure supported by the loans in question; To consider, assess and provide insights on compliance issues in relation to the loans acquisition; To consider and recommend relevant alternatives for development financing.

Scope and focus of the assignment

The scope and focus of the assignment is to provide technical expertise and research based evidence on the developmental impacts of the US$1.4billion gazetted Afrexim bank loans which will enable ZIMCODD to engage with policy makers on debt transparency and sustainable development financing models.

Expected outcomes

A credible research backed opinion paper with well thought out policy recommendations that will be published by ZIMCODD.

Roles and responsibilities

The consultant will be responsible for: Preparation of a work plan, methodology and data collection; Production of expected deliverable in accordance with the requirements and timeframes of the Terms of References; Present the opinion paper at a validation meeting and incorporate feedback arising thereafter; Submit a final, reviewed and edited opinion paper approved and accepted by ZIMCODD editorial team.

Qualifications education

The consultant(s) should have a minimum of a Master’s degree in a field relevant to the assignment (Development Financing, Public Administration, Political Science and Governance, Public Policy, Economics, or in related Social Science fields, or Business Administration.)

Technical Experience and Requirements

At least 3-5 years of experience in the area of Public Finance, Public Administration, Governance, Development Economics, Debt, Research or related areas; Knowledge of and/or proven expertise in the Civil society sector, conducting related assignments and presenting papers.