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Concerns over endless Zim debt escalates

by Stephen Jakes
06 Apr 2022 at 05:59hrs | Views
Zimbabwe Coalition on Debt and Development (ZIMCODD) and the Zimbabwe Public debt Indaba (ZPDI)  have said there are rising concerns over the deepening debt crisis in Zimbabwe.

In its latest report Zimcodd said the International Monetary Fund ( IMF) debt statistics confirm the reversal of micro economic gains with the consolidated  debt now projected at US$19.03 billion at the conclusion of Article IV consultation with Zimbabwe on March 21, 2022 which acknowledged fiscal signs.

The Organization said the heavy in-debtedness is at the core of Africa's socio economic development challenges and Zimbabwe is not an exception.

"Dept servicing diverts the money meant to finance public expenditure resulting to poor access to public services such as water, health, education and sanitation," reads the report.

"The ballooning, US$19,03 billion consolidated public sector debt  represent 61,8% Gross Domestic Product (GDP) a threshold above acceptable ratio with Public and publicly guaranteed external debt standing at US$17,59 billion of which arrears are at US$13,1 billion." 

Zimcodd said all the huge amounts of debts  are a major driving force to poverty and inequality in Zimbabwe as it has been noted that some women in Binga struggle to access material health care. 

It noted ballooning debt amid the spiralling illicit financial  flows and failure to widen government revenue from the country's vast mineral wealth.

"Government has a US$12 billion mineral export earnings target by 2023, yet the mining tax revenue targets to finance basic service provision are barely mentioned," it said.

"From US$50 billion lost annually as revealed by the African Union or Economic Commission from Africa's High Level Panel Report on illicit Financial flows, Africa loses more than US $88,6 billion annually according to United Nations Trade and development's Economic Development in Africa Report 2020."

Source - Byo24News