News / National
Zimbabwe sees $2.6bn bridge finance in place by early 2026
28 May 2025 at 10:51hrs | Views
Zimbabwe anticipates securing $2.6 billion in bridge financing by the first quarter of next year, a crucial step needed to repay debt owed to international financial institutions and regain access to global capital markets, Finance Minister Mthuli Ncube has announced.
Speaking on Monday in Abidjan, Ivory Coast's commercial capital, during the sidelines of the African Development Bank's (AfDB) annual meetings, Ncube outlined the country's roadmap to restructure its debt. Zimbabwe is currently in negotiations with several of the world's wealthiest nations, including the United Kingdom, Germany, and Brazil, to act as bridge financiers. According to Ncube, Zimbabwe formally reached out to 10 countries requesting bridge funds, with official bilateral bridge loans being the government's preferred approach to clearing arrears.
Zimbabwe's total debt stands at approximately $21 billion, a burden that has effectively barred the country from accessing global capital markets since it defaulted on payments in 1999.
To attract potential bridge financing partners, Zimbabwe aims to finalise a staff-monitored program with the International Monetary Fund (IMF) by the end of June. An IMF delegation is scheduled to visit the country next month to advance this process.
Roger Stuart, head of the regional hub at the European Investment Bank (EIB), which is owed $390 million by Zimbabwe (including $150 million in principal and accrued interest), confirmed that the EIB expects to be treated as a "preferred creditor" during debt negotiations. Stuart stated, "That is the totality of the arrears will be paid" to the EIB without any losses, adding that the EIB will participate alongside other international financial institutions in the process.
Outgoing AfDB President Akinwumi Adesina also expressed strong support for Zimbabwe, urging the lender to consider allocating part of its African Development Fund to assist the country in clearing some of its arrears. "I am ending my time as AfDB president but will not and will never end my support for Zimbabwe," he said. "Whoever is my successor will continue and takeover the work."
The anticipated bridge financing is seen as a vital step in Zimbabwe's long road to economic recovery and reintegration into international financial systems.
Speaking on Monday in Abidjan, Ivory Coast's commercial capital, during the sidelines of the African Development Bank's (AfDB) annual meetings, Ncube outlined the country's roadmap to restructure its debt. Zimbabwe is currently in negotiations with several of the world's wealthiest nations, including the United Kingdom, Germany, and Brazil, to act as bridge financiers. According to Ncube, Zimbabwe formally reached out to 10 countries requesting bridge funds, with official bilateral bridge loans being the government's preferred approach to clearing arrears.
Zimbabwe's total debt stands at approximately $21 billion, a burden that has effectively barred the country from accessing global capital markets since it defaulted on payments in 1999.
Roger Stuart, head of the regional hub at the European Investment Bank (EIB), which is owed $390 million by Zimbabwe (including $150 million in principal and accrued interest), confirmed that the EIB expects to be treated as a "preferred creditor" during debt negotiations. Stuart stated, "That is the totality of the arrears will be paid" to the EIB without any losses, adding that the EIB will participate alongside other international financial institutions in the process.
Outgoing AfDB President Akinwumi Adesina also expressed strong support for Zimbabwe, urging the lender to consider allocating part of its African Development Fund to assist the country in clearing some of its arrears. "I am ending my time as AfDB president but will not and will never end my support for Zimbabwe," he said. "Whoever is my successor will continue and takeover the work."
The anticipated bridge financing is seen as a vital step in Zimbabwe's long road to economic recovery and reintegration into international financial systems.
Source - Newzwire
