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Economic growth

Zimbabwe Debt Resolution Process Gains Momentum at AfDB Annual Meetings

Strategic Insights

— 2 min read

A significant high-level event focusing on Zimbabwe's arrears clearance and debt resolution process is set to unfold in Abidjan, Cote d'Ivoire, during the African Development Bank (AfDB) Annual Meetings, alongside the Structured Dialogue process aimed at resolving the country's US$21 billion debt burden. The event, jointly organised by the AfDB and the Government, will bring together key international stakeholders to review progress made, reaffirm international support, and mobilise fresh financial and technical assistance to help Zimbabwe address its debt and arrears. The session will feature a Davos-style panel with prominent panellists, including AfDB President Dr. Akinwumi Adesina, former Mozambican President Joaquim Chissano, and Zimbabwe's Finance Minister Professor Mthuli Ncube.

Key Takeaways:

  • The Structured Dialogue process has gained steady traction in Zimbabwe's efforts to resolve its US$21 billion debt burden and restore international financial credibility.
  • The AfDB has provided US$4.2 million to support the Structured Dialogue, including financing technical and legal advisers to assist in developing a comprehensive debt resolution road map.
  • Zimbabwe's public debt stood at US$21 billion last year, comprising US$13 billion in external debt and US$8 billion in domestic obligations.
  • The debt resolution process is expected to inject fresh momentum into the Structured Dialogue, with international support and mobilised financial assistance aimed at helping Zimbabwe address its debt and arrears.
  • Zimbabwe has registered significant progress in recent years, with creditor nations expressing satisfaction with the progress recorded so far.
  • The Structured Dialogue is institutional and not reliant on individuals, with economist Persistence Gwanyanya downplaying concerns about potential disruptions to the process ahead of Dr. Adesina's expected departure from the AfDB presidency.
  • The event follows a successful side meeting held during the 2023 AfDB meetings in Sharm El-Sheikh, Egypt, where President Mnangagwa, Dr. Adesina, and key stakeholders engaged on the way forward.

Statistics:

  • Zimbabwe's public debt stood at US$21 billion last year, comprising US$13 billion in external debt and US$8 billion in domestic obligations.
  • The AfDB has provided US$4.2 million to support the Structured Dialogue, including financing technical and legal advisers.
  • The Structured Dialogue process aims to resolve Zimbabwe's US$21 billion debt burden.
  • Zimbabwe has registered significant progress in recent years, with creditor nations expressing satisfaction with the progress recorded so far.

Sources:

  • African Development Bank
  • Zimbabwe Government
  • Persistence Gwanyanya, Economist
  • Dr. Akinwumi Adesina, AfDB President
  • Joaquim Chissano, former Mozambican President
  • Professor Mthuli Ncube, Zimbabwe's Finance Minister
  • International Monetary Fund (IMF)
  • European Union (EU)
  • Swiss Ambassador Stephane Rey
  • Andrew Pascoe, representative of former farm owners

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