• H.R. 5300’s proposed repeal of ZDERA could unlock IMF/World Bank funding for Zimbabwe’s $21.5 billion debt crisis, while strengthening U.S. commercial ties
• The bill ties sanctions repeal to Zimbabwe paying $3.5 billion in inflation-adjusted compensation to dispossessed farmers within 12 months
• Both nations stand to gain, Zimbabwe regains global financial access, and the U.S. bolsters its geopolitical standing through new African alliances

Harare- The United States Congress has introduced H.R. 5300, the Department of State Policy Provisions Act, which includes provisions to repeal the Zimbabwe Democracy and Economic Recovery Act of 2001 (ZDERA), a move that could signal a thaw in long-standing tensions.

This legislative proposal, introduced just five days ago on September 11, 2025, by Representative Brian Mast (R-FL), aims not only to lift certain economic restrictions on Zimbabwe but also to tie any relief to specific conditions, while broader aspects of the bill seek to strengthen U.S. commercial ties across Africa.

The proposed bill offers a strategic opportunity for both Zimbabwe and the United States to reset their relations amid distinct but pressing crises. Zimbabwe faces a severe debt crisis, with a total debt of $21.5 billion in early 2025, $12.6 billion in external debt (58.6%) and $8.9 billion in domestic debt. This legislation provides Zimbabwe a pathway to economic recovery through reforms while addressing accountability for past issues, offering a chance to restore its global standing.

Meanwhile, the U.S. is grappling with growing isolation due to geopolitical tensions with Russia and China. China’s dominance as Africa’s largest lender, often overlooking governance issues that the U.S. prioritizes, challenges American influence. Additionally, NATO’s internal divisions over the Russia-Ukraine war and the U.S.’s strained relations from trade disputes highlight the need for new allies. This bill reflects a pragmatic shift in U.S. policy, balancing its standards with the need to counter China and Russia by fostering partnerships.

Both nations stand to gain from renewed ties. For Zimbabwe, it’s a golden opportunity to rebuild and reclaim stability. For the U.S., it’s a chance to strengthen its global position through strategic alliances. In an era where friends are more valuable than enemies, this bill could be a win-win, provided both seize the moment.

To understand the significance of H.R. 5300, it's essential to revisit ZDERA's origins and effects.

Enacted on December 21, 2001, under Public Law 107-99, ZDERA was a bipartisan response to the political and economic turmoil in Zimbabwe during the early 2000s. Sponsored by then-Senators Bill Frist (R-TN) and Russ Feingold (D-WI), the act passed with overwhelming support, 91% of Congress voted in favour, including 194 Democrats, 200 Republicans, and 2 Independents.

Its stated purpose was to support Zimbabweans in their "struggle to effect peaceful, democratic change, achieve broad-based and equitable economic growth, and restore the rule of law."

At its core, ZDERA imposed restrictions on U.S. support for Zimbabwe within international financial institutions (IFIs) such as the International Monetary Fund (IMF) and the World Bank. Specifically, it directed U.S. representatives at these bodies to oppose any extension of loans, credits, or debt cancellation to the Government of Zimbabwe until Harare met several conditions: respecting property and human rights, ending political violence, restoring the rule of law, and implementing economic reforms.

This effectively isolated Zimbabwe from multilateral aid, exacerbating its economic woes amid hyperinflation, land reforms, and political repression under former President Robert Mugabe.

Over the years, ZDERA has been amended, notably in 2018 through the Zimbabwe Democracy and Economic Recovery Amendment Act (ZDERAA), which added requirements for compensation to dispossessed white farmers from the controversial land reform program of the early 2000s. This amendment, passed as S. 2779 in the 115th Congress, urged enforcement of Southern African Development Community (SADC) tribunal rulings on property disputes and tied U.S. assistance to fair land reform mechanisms.

The act's impact was profound: Zimbabwe accumulated over $21 billion in external debt and arrears, much of it unusable due to ZDERA's barriers, hindering access to IMF/World Bank programs for debt restructuring and economic stabilization.

Separate from ZDERA, the U.S. maintained targeted sanctions under Executive Orders like EO 13288 (2003), which blocked assets of individuals undermining democracy in Zimbabwe. These evolved into the broader Zimbabwe Sanctions Program, administered by the Treasury's Office of Foreign Assets Control (OFAC).

In a major shift in March 2024, President Joe Biden terminated the national emergency underpinning these sanctions via EO on the Termination of Emergency With Respect to Zimbabwe, revoking prior EOs and removing general sanctions from the books.

However, the U.S. simultaneously designated 11 individuals including President Emmerson Mnangagwa and three entities under the Global Magnitsky Human Rights Accountability Act for corruption and human rights abuses, refocusing pressure on specific actors rather than the broader economy. This transition emphasized U.S. concerns over "democratic backsliding, human rights abuses, and government corruption," as noted by Deputy Treasury Secretary Wally Adeyemo.

ZDERA, however, remained in place, continuing to block broader IFI support. Previous repeal attempts, such as the Zimbabwe Sanctions Repeal Act of 2010 (S. 3722) and 2011 (S. 1646), both sponsored by Sen. James Inhofe (R-OK), stalled in committee without a vote. H.R. 5300 marks the latest effort to address this legacy.

Key Provisions of H.R. 5300: Repeal with Strings Attached

H.R. 5300 is a comprehensive foreign policy bill spanning 248 pages, covering topics from Arctic security to nuclear cooperation with Europe. Its Zimbabwe-specific measures are outlined in Section 303: "Repealing the Zimbabwe Democracy and Economic Recovery Act of 2001."

The core provision is straightforward: Subsection (a) repeals ZDERA in its entirety, as amended, effective upon enactment. This would remove the statutory barrier preventing U.S. support for Zimbabwe in IFIs, potentially unlocking access to loans, debt relief, and development funding critical for a nation facing severe drought, currency instability (with the Zimbabwe Gold or ZiG devalued 43% in September 2024), and a cholera outbreak that has claimed over 700 lives.

However, the repeal is not unconditional. Subsection (b) imposes a key safeguard: "The United States shall not support any new or expanded funding from the International Monetary Fund or the International Bank for Reconstruction and Development (commonly known as the World Bank) for the Government of Zimbabwe unless the Government of Zimbabwe shall commit, within 12 months of the approval of such new or expanded funding, to remit all outstanding arrears owed under the Global Compensation Deed, inflation adjusted to the date of enactment, and compensation shall not be in the form of Zimbabwe issued securities."

The "Global Compensation Deed" refers to a 2020 agreement between Zimbabwe and representatives of former white commercial farmers, under which Harare committed to paying $3.5 billion in compensation for seized land and improvements. To date, only a fraction has been disbursed, with payments stalled by economic constraints.

The bill's inflation adjustment ensures the amount reflects current values, and the prohibition on Zimbabwe-issued securities (like bonds) demands hard currency or equivalent, addressing concerns over Harare's history of defaulting on such instruments.

Beyond Zimbabwe, the bill emphasizes broader U.S. engagement with Africa. Section 304, "Strengthening Commercial Diplomacy in Africa," directs the State Department to enhance trade promotion, investment facilitation, and diplomatic efforts to counterbalance influences from China and Russia on the continent.

This aligns with U.S. strategies like the Partnership for Global Infrastructure and Investment (PGII), aiming to boost economic ties while promoting good governance.

Current Status and Path Forward

As of September 16, 2025, H.R. 5300 remains in its earliest stage. Introduced in the House of Representatives on September 11, it was immediately referred to the House Committee on Foreign Affairs, where it awaits hearings, markup, and potential amendments. No companion bill has been introduced in the Senate yet, and with the 119th Congress in its first session, the timeline for advancement is uncertain.

Historically, foreign policy bills like this can move quickly if bipartisan support emerges, but Zimbabwe-specific provisions may face scrutiny amid ongoing human rights concerns.

A Congressional Budget Office (CBO) cost estimate is pending, and no summary has been finalized by the Congressional Research Service (CRS). If passed by the House and Senate in identical form, it would head to the President for signature. Given the bill's repeal of a 24-year-old law, it could garner support from those advocating normalised relations, but critics may push for stronger human rights conditions.

Implications

For Zimbabwe, repealing ZDERA could be transformative. Access to IMF/World Bank funding might enable debt restructuring vital as arrears exceed $6 billion to the IMF alone and support recovery from the 2024 El Niño-induced drought affecting 7.7 million people.

However, the compensation condition ties relief to resolving the land issue, a flashpoint since 2000 that displaced thousands and fuelled racial tensions. President Mnangagwa's government, sanctioned personally under Global Magnitsky, has expressed willingness to pay farmers but cited fiscal limitations; meeting the 12-month deadline would require international backing or domestic revenue boosts.

Critics, including Human Rights Watch, argue that easing ZDERA without addressing broader abuses such as the crackdown on opposition figures like Jameson Timba or the Private Voluntary Organizations Amendment Act signed in April 2025, which curtails civic space rewards impunity.

The EU suspended governance funding in response to the latter, highlighting international wariness. Proponents counter that targeted sanctions already pressure elites, and economic engagement could empower ordinary Zimbabweans.

On the U.S. side, the bill fits into a strategic pivot toward Africa. By promoting commercial diplomacy, it counters China's Belt and Road investments and Russia's Wagner Group activities, fostering U.S. exports and jobs while tying aid to reforms. As Rep. Mast stated in introducing the bill, it "guides the foreign policy of the United States" toward pragmatic, interest-driven diplomacy.

Looking ahead, H.R. 5300's passage could mark a new chapter in U.S.-Zimbabwe relations, potentially paving the way for normalised trade and investment. Yet, its success hinges on Zimbabwe's response to the compensation mandate and U.S. lawmakers' willingness to prioritise economic incentives with gradual human rights enforcement.

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