The European Union (EU) has lifted its decade-long economic sanctions on Zimbabwe in a move that will see the trading bloc extending 234 million Euros (about 300 million U.S. dollars) to support socio-economic programs in Zimbabwe in the next five years.

EU ambassador to Zimbabwe Philipe Van Damme told journalists at a press conference that President Robert Mugabe and his wife Grace, however, still remain on the EU restrictive measures which are due for review next February.

He said the lifting of the appropriate measures under Article 96 of the Cotonou Agreement which governs relations between the two sides will pave way for Zimbabwe to benefit from the 11th European Development Fund for the period 2015 to 2020.

The lifting of the measures which were imposed in 2002 following political differences with Harare is with effect from Nov. 1, 2014.

He said the funding will be channelled towards political and economic governance, health and agricultural sectors.

After imposing the appropriate measures, the EU was channelling its support to Zimbabwe through multilateral and donor agencies and Van Damme said the EU will review each funding project to see how best it can channel the funds.

“With this decision of having Article 96 appropriate measures lifted, I think we have reached a very important step towards normalization of relations with Zimbabwe because what this implies is that we can once more re-engage in a more structured and formal way with government to have constructive dialogue on political and policy issues,” Van Damme said.

He said part of the EU funding will be used to enhance economic reforms in Zimbabwe so that it can create a conducive environment for investment attraction.

“With the lifting of the appropriate measures the EU will be able to support the Zimbabwe government in implementing the IMF Staff Monitored Program and engage government on essential economic reform programs,” he said.

The lifting of the measures comes as the EU, which has been gradually easing the measures since 2009, has begun efforts to re-engage Zimbabwe as evidenced by a British trade delegation currently visiting Zimbabwe while the Danish trade minister is scheduled to visit next week to explore areas of cooperation.