AfDB helps Zimbabwe mobilises revenue

THE African Development Bank (AfDB) is working with Treasury and the central bank to produce debt and investment gold models for Zimbabwe to allow the country to come up with best policies to mobilise domestic revenue, Standardbusiness has established.

The process is expected to enable the country to harness economic opportunities and competitive advantages in order to allow Zimbabwe to grow its gross domestic product (GDP) faster.

Zimbabwe is going through economic meltdown coupled with high inflation and also reeling from lack of access to global finance due to a huge debt overhang

In 2022, AfDB president Akinwumi Adesina formally accepted President Emmerson Mnangagwa's request to lead Zimbabwe's debt clearance strategy, which is key for Harare to unlock fresh funding from international financial institutions.

Responding to questions during a press conference ahead of the AfDB annual meeting scheduled for Kenya at the end of May, the institution's chief economist

and vice president for economic governance and knowledge management Kevin Urama said the best way to address debt was to grow the economy.

"We are working with the ministry of Finance and the central bank to produce debt and investments gold models that will allow the country to be able to come up with best policies available to them to mobilise domestic revenue," Urama said.

"This is also to allow them to harness economic opportunities and competitive advantages of the country in order to grow the GDP faster.

"The best way to address debt is to grow your economy and the government of Zimbabwe fully recognises that.

"I want to commend the Finance minister (Mthuli) Ncube, the central bank governor and the president. They have been doing a good job to allow Zimbabwe to take off."

Urama said the country's GDP had been on a positive trajectory over the years and the government has also been doing a lot to address a number of issues around access to global finance.

"As you are aware, the President of Zimbabwe had appointed the President of the African Development Bank and President Joaquim Alberto Chissano to lead in the dialogue of trying to address the issues around debt arreas clearance and that is progressing really, well," he said.

The AfDB annual meetings are the group's most important events, bringing around 3 000 delegates and participants together each year.

This year, the meetings will be held under the theme: "Africa's Transformation, the African Development Bank Group, and the Reform of the Global Financial Architecture."

"This theme was chosen to give the bank's group governors the chance to share their experiences on the progress made by their respective countries in transforming their economies, the main obstacles encountered along the way and the key reforms implemented to overcome them," the bank said in a statement.