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ZIMBABWE and the European Union on Monday opened a new chapter in their relationship when they signed a co-operative agreement for the release of 234 million euros ($270 million) in development assistance. This is the first time since 2002 that the EU has channelled funds through Treasury as opposed to providing funding through donors.

The move to provide funding through Treasury comes as Western donors announced they had stopped availing money to anti-government organisations in Zimbabwe after they failed to account for more than $850 million extended by USAid as part of the regime change agenda between 2011 and 2014.

The $270 million National Indicative Programme (NIP) sponsored by the 11th European Development Fund (2014-2020) will be concentrated on health, agriculture, governance and institutional building, sectors that are key in the implementation of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation. Health will receive 88 million euros with the objective of improving health service delivery. Another 88 million euros will fund the agricultural sector while 45 million euros will go towards governance and institution building in a bid to strengthen the rule of law through institutional capacity building. Half of the $270 million to be availed by EU will be released this year although the programme runs until 2020.

Speaking at the NIP signing ceremony, Finance and Economic Development Minister Patrick Chinamasa said while the EU gesture was a step in the right direction, the maintenance of the illegal sanctions against the First Family poisoned the relationship thereby retarding full enjoyment of the new economic cooperation between Zimbabwe and the EU.

Cde Chinamasa called for political dialogue between Zimbabwe and the EU for the removal of the sanctions against President Mugabe and the First Lady.

We totally agree with Cde Chinamasa that full economic cooperation between Zimbabwe and the EU can only be realised after total removal of sanctions against Zimbabwe and all its citizens including Cde Mugabe and his family. It defeats all logic to expect Zimbabwe and the EU to enjoy full economic cooperation when the bloc maintains sanctions against President Mugabe. The EU sanctions against Zimbabwe were illegal and if the EU is really committed to opening a new chapter with Zimbabwe, it cannot continue with the illegal sanctions against the First Family.

The dispute between Zimbabwe and her former coloniser, Britain over the land issue had nothing to do with the rest of Europe hence the EU sanctions were unwarranted. Zimbabwe is committed to engaging the EU and the government has already announced that it is open for business so all EU countries are therefore welcome to invest in the country.

We want to applaud the EU for finally seeing the light and taking an informed decision to direct its funding through Treasury where it can demand that every cent disbursed should be accounted for. The signing of the cooperative agreement, we want to believe, has opened Zimbabwe to EU investors who have no reason to doubt the security of their investment.