Zimbabwe has appealed to international creditors and development partners for support in tackling its mounting $21 billion debt, which continues to hinder economic development. President Emmerson Mnangagwa made the call during the seventh high-level structured dialogue platform forum held in Harare on Monday.
In his address, Mnangagwa outlined the country’s commitment to economic, public sector, and governance reforms aimed at facilitating a resolution to its debt crisis. The $21 billion burden comprises $13 billion in external debt and $8 billion in domestic obligations, with much of the external debt in arrears. The Zimbabwean leader emphasised that resolving the arrears was pivotal to unlocking concessional external financing crucial for long-term economic growth.
“Since the establishment of the structured dialogue platform process in 2022, we have registered tremendous progress, with growing consensus, trust, and confidence in this initiative,” Mnangagwa said. He called for sustained support from international financial institutions, development partners, creditors, and the broader global community to advance Zimbabwe’s arrears clearance and debt resolution strategy.
The arrears clearance process is being spearheaded by African Development Bank (AfDB) President Akinwumi Adesina, with former Mozambican President Joaquim Chissano serving as the high-level facilitator. Both figures have been instrumental in fostering dialogue and collaboration among Zimbabwe’s creditors and development partners.
Mnangagwa noted that Zimbabwe is negotiating a Staff Monitored Programme (SMP) with the International Monetary Fund (IMF) as part of its reform agenda. This programme is expected to provide an independent assessment of Zimbabwe’s economic policies and lay the groundwork for future financial support. The IMF is set to prepare the framework for the SMP during its upcoming mission to Zimbabwe in January 2024.
Adesina, speaking at the event, highlighted the detrimental impact of Western sanctions on Zimbabwe’s economic prospects and debt sustainability. He described the nation’s arrears as “piles of sandbags on the back of Zimbabwe,” underscoring the urgency of resolving the crisis to enable the country to achieve economic stability and growth.
Zimbabwe’s structured dialogue platform, established in 2022, has been hailed as a key step in building consensus among stakeholders. However, the country faces significant challenges, including limited access to international financial markets and persistent economic instability exacerbated by external sanctions.
The debt resolution process comes at a time when Zimbabwe is seeking to rebuild trust with international creditors, including the World Bank and the Paris Club, while fostering closer ties with African and global financial institutions.
