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Time to accelerate Zimbabwe’s $21 billion public debt and arrears resolution process, say stakeholders

After
nearly
two
years
of
dialogue
with
development
partners,
Zimbabwe
says
it
is
ready
to
accelerate
the
arrears
clearance
and
debt
resolution
process
by
working
with
the
International
Monetary
Fund
for
a
staff
monitored
programme
(SMP)
to
start
in
January
2025.

The
IMF’s
programme
falls
under
the
economic
reforms
Zimbabwe
is
undertaking
as
part
of
the
process
to
clear
its
$21
billion
public
debt
and
arrears.

Addressing
the
6th Structural
Dialogue
of
the
process
hosted
by
the
Zimbabwe
government
in
the
capital
Harare,
President
Dr
Emmerson
Mnangagwa
expressed
support
for
the
IMF
programme
and
called
for
financial
intervention
to
protect
vulnerable
groups
of
the
population
that
will
be
negatively
affected.

“In
this
regard,
the
protection
of
the
vulnerable
groups,
through
effective
social
protection
programmes
is
of
critical
importance
to
my
government,”
President
Mnangagwa
told
creditors,
development
partners,
private
sector
players,
civil
society
organisations
and
farmers’
organisations
at
Monday’s
high-level
dialogue.

The
President
and
Chairman
of
the
Boards
of
Directors
of
the
African
Development
Bank
Dr
Akinwumi
Adesina
termed
the
IMF
programme
“a
significant
milestone
towards
concretizing
the
arrears
clearance
and
debt
resolution.”

“I
would
like
to
urge
here
that
our
collective
efforts
will
be
critical
to
ensure
that
this
is
a
wet-SMP
(a
supported
staff
monitored
programme)
that
will
provide
fiscal
space
for
the
country
to
implement
needed
reforms
and
protect
the
vulnerable
populations,”
said
Adesina,
the
Champion
of
the
process.

President
of
the
African
Development
Bank
Group,
Dr.
Akinwumi
Adesina
addressing
a
High-level
Structured
Dialogue
Platform
meeting
on
Zimbabwe’s
arrears
clearance
and
debt
resolution
process,
in
Harare,
Zimbabwe,
November
25,
2024

Working
groups
formed
under
the
dialogue
process
to
oversee
reforms
across
the
three
sectors
of
Economic
Growth
and
Stability
Reforms,
Governance,
Land
Tenure
and
Compensation,
presented
their
updates.

Praising
what
he
described
as
“an
inclusive
and
transparent
consultative
process”,
President Mnangagwa
outlined
a
series
of
fiscal,
governance
and
legislative
reforms
that
the
government
has
embarked
upon
to
improve
macroeconomics
stability,
and
government
efficiency
and
accountability.

The
reforms
include
the
launch
of
a
new
local
currency,
a
more
flexible
and
transparent
foreign
exchange
market,
and
the
introduction
of
new
parliamentary
bills
to
strengthen
the
fight
against
corruption.

Others
are
the
far-reaching
land
tenure
reforms
to
promote
investor
confidence,
and
a
$35
million
compensation
package
for
more
than
400
farmers
affected
by
a
land
redistribution
program
in
the
1990s.
In
addition,
all
land
held
by
beneficiaries
of
99-year
leases
and
offer
letters
under
the
land
reform
program
will
now
be
covered
by
bankable
and
transferable
documents
of
tenure
to
be
issued
by
government.

Reflecting
on
the
two-year
journey,
Adesina
said,
“We
have
made
more
progress
in
two
years
than
all
the
prior
21
years
since
the
sanctions
were
imposed.
The
high-level
structured
dialogue
is
the
only
way,
there
is
no
other
way.”

The
Bank
Group
president
called
for
a
new
lease
of
life
for
Zimbabwe
and
its
people:
“It
is
clearly
time
to
bring
this
to
a
close,
end
the
decades
of
untold
damage
to
the
economy
of
Zimbabwe,
the
suffering
of
its
people,
and
have
a
new
beginning
with
collective
hope,
aspiration
and
shared
prosperity,
for
its
people,
today
and
well
into
the
future,”
Adesina
declared.

He
pointed
out
that
23
years
of
sanctions
had
“left
Zimbabwe
with
a
pile
of
debt
which
has
risen
to
$21
billion

$13
billion
for
external
debt
and
$8
billion
of
domestic
debt.
Even
wars
never
last
this
long.”

“We
all
agree
we
must
play
our
part
to
correct
this
anomaly
and
give
a
new
lease
of
life
to
this
nation
and
its
people,
so
Zimbabwe
can
run
again,”
Adesina
stressed.
“Run,
to
build
first
rate
schools.
Run,
to
build
infrastructure,
from
transport
corridors,
railways
and
power
transmission
lines
that
will
integrate
the
SADC
region
and
boost
economic
growth
and
jobs.”

Speaking
by
video
message,
the
high-level
facilitator
of
the
resolution
process,
former
President
of
Mozambique,
Joaquim
Chissano,
urged
the
international
community
to
do
more
to
support
the
government
of
Zimbabwe
with
the
financial
and
technical
resources
required
to
implement
the
ongoing
reforms.

Chissano
and
President
Mnangagwa
praised
Adesina
for
his
role
as
the
Champion
of
the
process
and
also
thanked
the
African
Development
Bank
for
providing $4.2
million
to
facilitate
and
support
the
structured
dialogue.
The
Bank
is
also
financing technical
and
legal
advisors
to
help
develop
a
comprehensive
roadmap
for
the
debt
resolution
process.

President
of
Zimbabwe,
Dr
Emmerson
Mnangagwa
(center),
flanked
by
the
President
of
the
African
Development
Bank
Group,
Dr.
Akinwumi
Adesina
(second
left),
and
Zimbabwe’s
Minister
of
Finance,
Economic
Development
and
Investment
Promotion,
Prof
Mthuli
Ncube
(second
right)
at
a
High-level
Structured
Dialogue
Platform
meeting
in
Harare,
Zimbabwe,
November
25,
2024

Adesina
said
the
Bank’s
Board
of
Directors
will
consider
continued
support
for
the
process.
In
addition,
the
Bank
will
set
aside
funding
in
the
next
replenishment
cycle
for
its
concessional
financing
arm,
the
African
Development
Fund,
for
clearing
Zimbabwe’s
arrears,
similar
to
what
the
Bank
did
for
Sudan
and
Somalia.

Bolstering
his
argument
for
a
sanctions-free
Zimbabwe,
Adesina
highlighted
its
geostrategic
importance
to
Southern
Africa,
as
well
as
the
abundant
mineral
and
metal
deposits
that
make
it
critical
to
the
global
energy
transition.
He
emphasized,
“Zimbabwe
is
too
critical
for
the
world
to
ignore.”

Source:


Speech
delivered
by
Dr.
Akinwumi
A.
Adesina
President
and
Chairman,
African
Development
Bank
Group

High-level
Structured
Dialogue
Platform
Meeting
on
Arrears
Clearance
and
Debt
Resolution
for
Zimbabwe

|
African
Development
Bank
Group