ʻZimʼs arrears, debt resolution process oncourseʼ President

ZIMBABWEʼs arrears clearance and debt resolution process is proceeding well, with a meeting between the
Government, creditors and development partners set for Harare today.
This was said by former Mozambique President Joachim Chissano and African Development Bank
president, Dr Akinwumi Adesina, in separate interviews after meeting President Mnangagwa at State
House last night.
Zimbabweʼs debt clearance process is being championed by Dr Adesina while former President Chissano is
the High-Level facilitator.
The countryʼs consolidated debt is US$17,5 billion, with debt owed to international creditors standing at
US$14,04 billion, while domestic debt amounts to US$3,4 billion.
Debt owed to bilateral creditors is estimated at US$5,75 billion, while debt to multilateral creditors is
estimated at US$2,5 billion.
The debt continues to weigh heavily on Zimbabweʼs development efforts, and former President Chissano
said they expect positive outcomes from todayʼs meeting.
“We were preparing for tomorrowʼs meeting, to exchange views and get the views of the President about
the process and we all agreed that the process so far is going on well and there is a lot of discussion with
partners and in many cases, you find very positive approaches from them and so we are glad and
tomorrow (today) we foresee that we are going to have a good meeting,” said President Chissano.
Dr Adesina echoed similar sentiments and praised President Mnangagwaʼs commitment to the debt
resolution process.
“We met with President Mnangagwa to brief him about the progress that has been made and we are
excited about President Mnangagwaʼs leadership of the process and his great commitment to it and the
whole of Government approach towards this and the great support of development partners towards this.
“Itʼs a joint effort and we think we are moving in the right direction and the right spirit, and we think that
this high-level debt forum tomorrow (today) will further cement the right direction we are in.
“We anticipate that things should go well for Zimbabwe. We have lots of work to do but we are determined
and committed and the President is highly committed; I am sure we will succeed,” said Dr Adesina.
Zimbabweʼs debt overhang has prevented it from accessing long-term lines of credit from international
financial institutions to fund developmental programmes.
Previously, the meeting brought together three sector working groups: two that had earlier been
established — one on macroeconomic growth and stability reforms, and another on governance reforms,
— as well as a third new sector working group on land tenure reforms, compensation of former farm
owners and the resolution of Bilateral Investment Promotion and Protection Agreements (BIPPAs).
During the previous meeting, Permanent Secretary for Finance and Economic Development, Mr George
Guvamatanga, reaffirmed the Governmentʼs commitment to ʻZimʼs arrears, debt resolution process on
courseʼ
the arrears clearance and debt resolution process.
He also said the Government was committed to delivering on the policy reforms arising from the three
reform matrices of the three-sector working groups.
Development partners expressed overall satisfaction with the process.
They acknowledged the swiftness with which the sector working group on land tenure, the Global
Compensation Deed and the resolution of the Bilateral Investment Promotion and Protection Agreements
(BIPPAs) was established. The meeting brought clarity to the reform agenda of the three-sector working
groups.
Participants agreed that an International Monetary Fund (IMF) state-monitored programme was a key
component of the economic reform sector working group.
Finance and Economic Development Minister Professor Mthuli Ncube told participants that realistically,
this state-monitored programme would be implemented after Zimbabweʼs elections, expected in August
this year.
He told the meeting, as did World Bank country manager Ms Majorie Mpundu, representing the economic
reforms sector working group, that a funded state monitored programme was necessary to ensure effective
implementation of the programme and reforms.
In December 2022, the Government established a structured dialogue platform with all creditors and
development partners, to institutionalise structured dialogue on economic and governance reforms to
underpin the arrears clearance and debt resolution process. Herald