HARARE -- An International Monetary Fund (IMF) mission arrives in Zimbabwe today for consultations with Harare authorities as part of ongoing efforts by the world lender to help the country revive its economy after a decade of collapse.

It was not immediately clear how long the mission's visit would last but previous IMF delegations have stayed in the country for at least two weeks.

The latest IMF mission to Zimbabwe comes days after the Bretton Woods institution last week predicted a sharp decline in growth for the southern country’s economy, while warning that recovery remained fragile.

In a report released at the conclusion of another consultative visit to Harare, the IMF projected Zimbabwe’s economy to grow 5.5 percent this year, a decline from the 8 percent last year, differing sharply with Finance Minister Tendai Biti who is more upbeat on growth prospects.

Biti has said the economy could exceed the official forecast of 9.3 percent this year, driven by higher commodity prices but cautioned that politics continued to weigh on the southern African nation.

In its statement last week the IMF said nominal GDP would rise to about $9 billion this year from $7.4 billion in 2010 but that Zimbabwe remained in debt stress, forecasting that foreign debt would stand at $9.6 billion by December.

The fund urged Zimbabwe to start an IMF monitored staff programme, the first step in the long road towards accessing financial aid.

International lenders last extended funding to Zimbabwe in 1999 before a fall-out with President Robert Mugabe, whose policies, including the seizures of white-owned commercial farms in 2000 led to an investor flight.

Zimbabwe’s arrears to foreign lenders now stand at $6.4 billion and the country has agreed to clear its debt through debt cancellation and using revenues from its minerals to settle part of the money it owes, the Fund said. 

By Zimonline