The African Development Bank (AfDB) on Thursday decried Western sanctions on Zimbabwe, saying the punitive measures have led to external arrears and debt accumulation by Zimbabwe over the years.
Zimbabwe is reeling under 14.04 billion U.S. dollars in debt owed to international creditors, with debt owed to bilateral creditors estimated at 5.75 billion dollars and debt to multilateral creditors estimated at 2.5 billion dollars.
The country is in arrears for servicing its debt to multilateral development banks, including the African Development Bank, the World Bank, and the European Investment Bank.
The country, however, has in the last few months been making token payments to service its debt to multilateral lenders.
Akinwumi Adesina, AfDB president, who was appointed by Zimbabwean President Emmerson Mnangagwa last year to act as the country’s champion on the arrears clearance and debt resolution process, was speaking in Harare, Zimbabwe’s capital, at a meeting with the creditors to tackle the debt.
“The people of Zimbabwe have suffered enough. The young people of Zimbabwe deserve to have their once-prosperous country back. They cannot continue to suffer for a past they did not create. They deserve a new and prosperous future. It is time now to rebuild what has been broken; it is now time to refrain from casting stones; it is now time to heal; it is now time for peace,” Adesina said.
He said while token payments are being made to service the debt, it is now time for comprehensive arrears clearance, debt resolution and debt restructuring for Zimbabwe.
“Zimbabwe cannot run up a steep hill of economic recovery carrying a heavy backpack of debt on its back,” he said.
He said despite the debt burden and sanctions, Zimbabwe’s economy is recovering with the potential for robust growth in the future.
While significant and highly commendable economic reforms have been implemented, the macroeconomic environment continues to be challenging with very high levels of inflation and currency depreciation, Adesina said.
“The green shoots are coming back, but much still needs to be done,” he said while commending the Zimbabwean government for agreeing on economic and governance reforms and the compensation of former white commercial farmers as a pathway to the clearance of the arrears and resolution of the debt.
The AfDB is providing technical support to Zimbabwe’s arrears clearance and debt resolution process through a 4.1-million-dollar grant, Adesina said.
