Zimbabwe's debt indaba on, AfDB meetings start

 The African Development Bank Group (AfDB) has commenced its 2025 annual meetings today, featuring key agenda items including Zimbabwe's arrears clearance and debt resolution process, as well as the election of the bank's next president. The meetings will run until Friday under the theme: "Making Africa's capital work better for Africa's development."

The theme underscores AfDB's commitment to deepening collaboration with regional member countries by harnessing Africa's human, natural, financial, and commercial capital to drive the continent's structural transformation towards greener, more inclusive, and resilient economies in the decades ahead. The strategy aims to leverage external capital flows through strengthened partnerships.

Over 6,000 delegates are attending the event, including African Heads of State and Government, finance ministers, central bank governors, development partners, private sector leaders, civil society representatives, academics, think tanks, NGOs, and other stakeholders.

Zimbabwe's Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, is expected to attend a high-level side event dedicated to Zimbabwe's arrears clearance and debt resolution. The event, organised jointly by AfDB and the Zimbabwean government, aims to advance the ongoing efforts to resolve the country's significant debt challenges.

Zimbabwe's public debt and arrears stood at approximately US$21 billion as of last year, comprising US$13 billion in external debt and US$8 billion in domestic debt. In February 2022, President Emmerson Mnangagwa appointed AfDB President Dr Akinwumi Adesina to champion the arrears clearance process, while former Mozambique President Joaquim Chissano was invited to facilitate dialogue among stakeholders.

Significant progress has been made over the past two years, with most creditors expressing optimism about reaching a favourable resolution. The side event, scheduled to start at 3 pm, will focus on mobilising financial support for Zimbabwe's arrears clearance. Key participants include AfDB shareholders, potential bridge financing champion countries, and representatives of compensated former farm owners.

The panel, styled after the Davos format, will feature AfDB President Dr Akinwumi Adesina, former Mozambique President Joaquim Chissano, Finance Minister Professor Ncube, Executive Director for Zimbabwe at AfDB Dr Luis Ngimbi, European Union Ambassador Jobst von Kirchmann, Swiss Ambassador Stéphane Rey, IMF country representative Carlos Caceres, and former farm owners' representative Andrew Pascoe.

Economist Persistence Gwanyanya welcomed the side event, describing it as "significant and most welcome." The AfDB has committed US$4.2 million to support the structured dialogue process and is financing technical and legal advisors to develop a comprehensive roadmap for debt resolution.

During the 6th Structured Dialogue held in Harare last November, President Mnangagwa expressed support for the IMF programme and called for financial interventions to protect vulnerable groups, emphasizing the importance of effective social protection programmes.

President Mnangagwa highlighted numerous reforms instituted under the Second Republic aimed at improving macroeconomic stability, governance, and government accountability. Among these reforms was the launch of the Zimbabwe Gold (ZiG) local currency on April 5 last year, which has remained stable. Recently, the government repealed regulations controlling the exchange rate, allowing businesses to price goods and services freely - an indication of growing confidence in the ZiG.

Other reforms include the issuance of bankable title deeds to beneficiaries of the Land Reform Programme. Dr Adesina hailed the IMF programme as a "significant milestone" in advancing Zimbabwe's arrears clearance and debt resolution, stressing the progress made in two years surpasses that of the previous two decades. He called for an end to the prolonged economic hardship, urging a new beginning rooted in shared prosperity.

In addition to the debt resolution discussions, the AfDB governors will elect a new president on Thursday to succeed Dr Adesina, whose second five-year term is ending. The candidates are Dr Maimbo Munzele of Zambia, Ms Tshabalala Bajabulile Swazi of South Africa, Mr Hott Amadou of Senegal, Mr Tah Sidi Ould of Mauritania, and Mr Tolli Abbas Mahamat of Chad.

The AfDB will also unveil its Annual Development Effectiveness Review and the African Economic Outlook 2025 during the meetings. These flagship reports offer comprehensive analysis and forecasts on the economic performance of African countries, serving as vital resources for policymakers and stakeholders.

Ahead of the meetings, journalists were taken on a tour of infrastructure projects funded by the AfDB in Côte d'Ivoire, including Abidjan's fourth bridge and the "Y4" bypass. These developments are part of the Abidjan Urban Transport Project, designed to alleviate severe traffic congestion in Côte d'Ivoire's capital, one of Africa's most gridlocked cities. The project forms a key component of the Master Plan for the Urban Transportation of Greater Abidjan.