Harare- President Emmerson Mnangagwa on Thursday re-affirmed Zimbabwe’s commitment to resolve its foreign debt situation and restore its good standing with international lenders.
Zimbabwe owes foreign creditors in excess of US$ 10 billion in principal plus arrears accrued over time.
The southern African country has not been able to settle its debts due to various reasons chiefly sanctions which have precipitated economic hardships over the past two decades.
But, President Mnangagwa, who has reached out to African Development Bank president Akinwumi Adesina and respected former Mozambican President Joachim Chissano to champion and facilitate Zimbabwe’s debt resolution plan, said, among other displays of good faith, Zimbabwe continues to make quarterly token payments to various creditors, according to an agreed payment schedule.
“Rest assured, that as a government, we are very keen to see Zimbabwe in good standing with all its creditors and determined to deliver favourable outcomes for the people of our country and the expectations of creditors,” he said.
“Following the generous support of the African Development Bank, we have engaged consultants, who are providing critical advice on the process of finalising the policy matrices. My Government Ministries will coordinate with the African Development Bank Group and work with you all towards a credible implementation framework.
“Our overall aim is to reach a point where the issues underpinning the arrears clearance and debt resolution process are agreed through consensus that takes into account our country’s unique realities.”
President Mnangagwa said the debt clearance plan would be underpinned by a three-pronged strategy.
“The first aspect relates to Economic Reforms. The second is on governance issues while the third relates to our commitment to a sustainable land tenure system. The compensation of former commercial farmers for improvements made on farms as well as the resolution of cases of farms affected during the Land Reform, which were covered by Bilateral Investment Promotion and Protection Agreements (BIPPAs) will also be considered under the third pillar.
“With regards to economic reforms, we recognise that exchange rate stability is a key area that requires continued attention. So far, multi- pronged routes are being pursued to ensure greater certainty around this matter. I am pleased to highlight that, my government has agreed a compensation package with former commercial farmers for improvements made on the land, under the Global Compensation Deed. We remain committed to the resource mobilisation efforts to enable payment of this obligation,” he said.
“On BIPPAs, the Ministry of Foreign Affairs and International Trade along with the Ministry of Agriculture, Lands, Water, Fisheries and Rural Development are engaging the affected investors, on a case-by-case basis. I am confident that this process will yield win- win outcomes.”
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