Harare- Zimbabwe’s debt clearance agenda takes a huge leap forward this coming week when high level engagements, championed by African Development Bank President Akinwumi Adesina, take place with creditors owed by the Southern African country over the course of the week.
The engagements, to be held in Harare, under the Second Session of the Structured Dialogue Platform Meeting on Debt and Arrears Clearance Strategy, have received further impetus by the addition of respected former Mozambican President Joachim Chissano as high level facilitator.
According to official statistics, Zimbabwe’s total Public and Publicly Guaranteed external debt, as at end of September 2022 was estimated at US$14.04 billion.
It comprised US$5.7 billion of bilateral debt (41 per cent), US$2.6 billion of multilateral debt (18.4 per cent), US$3.4 billion RBZ debt (24 per cent), and US$2.3 billion blocked funds (16.6 per cent).
Of the total bilateral external debt of US$5.7 billion, Paris Club debt amounts to US$3.6 billion, while US$2.2 billion is owed to Non-Paris Club creditors.
While some movement has been made towards servicing some of the country’s foreign debt, the payments have largely been of a token nature, as such, long term strategies are expected to be proffered through the debt clearance strategy.
In a statement, Ministry of Foreign Affairs and International Trade spokesperson Levit Mugejo said Chissano was expected in Zimbabwe on Sunday while Adesina would arrive later in the week.
“The High-Level visit reflects the ongoing foreign policy thrust by Zimbabwe of re-engaging the International Financial Institutions for purposes of international debt clearance and access to international finance,” he said.
“During their mission, the delegation is also scheduled to conduct meetings with the Ministers of Foreign Affairs and International Trade, Finance and Economic Development, Justice, Legal and Parliamentary Affairs, Home Affairs and Cultural Heritage, Lands, Agriculture, Fisheries, Water, and Rural Development, Information, Publicity and Broadcasting Services as well as Development Partners and the Diplomatic Community.”
Both Chissano and Adesina are also scheduled to meet with President Emmerson Mnangagwa.
Statistics from the ministry of finance indicate that the Zimbabwe government paid out US$50.28 million between January and September last year in service of its active debt portfolio, including token payments for debt arrears owed to International Financial Institutions and the Paris Club creditors.
To date, cumulative token payments to the World Bank amount to US$67 million, US$35.4 million to the African Development Bank Group and US$4.4 million to the European Investment Bank. Cumulative token payments to the 16 Paris Club Creditors amount to US$8 million.
Zimbabwe has not been able to service much of its foreign debts over the years due to a sustained economic downturn caused largely by illegal Western sanctions imposed on the country.
As a result, most international lenders stopped giving fresh loans to the country until it cleared its previous debts, a condition Zimbabwe has been unable to meet.
But the country has declared its intention to resolve its debt challenges and as part of a plan, the government adopted the Arrears clearance, debt relief and restructuring strategy and has roped in the African Development Bank to champion the debt clearance strategy.
Having successfully helped other countries, including Somalia and Sudan, deal with their debt problems, the AfDB has pledged to similarly assist Zimbabwe tackle its foreign debts.
- Latest
- Trending
