The European Union (EU) has approved a US$20 million aid package for Zimbabwe under its economic support program designed to help poor countries crippled by the global financial crisis and liquidity constraints.
Reports said Zimbabwe is among 19 nations set to benefit under the EU’s Vulnerability Support for Fluctuations in Export Earnings or V-FLEX mechanism.
According to the reports, the EU has allocated US$338 million under the V-FLEX scheme to troubled countries like Grenada, Benin, Bermuda, Haiti, Samoa, Guinea Bissau, Togo, Tonga and Zimbabwe.
These countries are believed to have a high degree of economic, social and political vulnerability.
Economists said the aid package is expected to boost Zimbabwe’s reconstruction efforts after failing to attract foreign direct investment and international donor support.
Political and economic commentator Bekithemba Mhlanga told VOA Studio 7 reporter Gibbs Dube that the aid package indicates thawing relations between the EU and Harare.
Economist Eric Bloch said although the aid package may seem insignificant it is welcome for a nation that is facing serious liquidity problems.