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Zimbabwe prioritises debt clearance
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Resolving Zimbabwe's crippling debt overhang has been elevated to a top national priority, with the Government declaring that the success of the arrears clearance and debt resolution process is essential for unlocking affordable, long-term external financing. This funding is seen as critical to the implementation of the upcoming National Development Strategy 2 (NDS2), Zimbabwe's five-year economic blueprint set to begin in 2026.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said the country remains fully committed to the roadmap launched in late 2022, which has already recorded "tremendous progress" across key reform areas.
"The progress we've made is anchored on three strategic pillars: economic growth and stability reforms, governance reforms, and land tenure reforms. This includes measures such as the bankability of 99-year leases, compensation of former farm owners, and resolution of Bilateral Investment Promotion and Protection Agreements (BIPPAs)," said Prof Ncube.
He added that the consultative and inclusive approach adopted by the Government has fostered growing consensus and trust among stakeholders.
"Access to concessional external financing is key to achieving the goals of NDS2 and ultimately Vision 2030. Therefore, the Government is prioritising the full implementation of this Structured Dialogue process to ensure we can secure the long-term capital needed for national development," said Prof Ncube.
Permanent Secretary in the Ministry of Finance, Mr George Guvamatanga, echoed the Minister's remarks, stressing that the Government views debt resolution as one of its most urgent tasks.
"Since December 2022, we have seen significant progress in implementing reforms under the three strategic pillars, with support from Sector Working Groups," said Guvamatanga. "Despite occasional challenges, our reform commitment remains firm, with a clear focus on unlocking concessional financing to meet our development goals."
Zimbabwe's total public and publicly guaranteed debt stood at US$21.5 billion as of December 31, 2024 - up from US$21.2 billion a year earlier - representing 47.1% of GDP. The debt is split between US$13.2 billion in external debt and US$8.3 billion in domestic debt.
Guvamatanga highlighted that resolving the debt burden is not only crucial for the public sector but also for empowering private enterprise.
"The private sector is undeniably a key engine of economic growth. By resolving our debt issues, we will enhance its access to long-term financing, enable job creation, and support innovation. Our people deserve access to opportunities, and this process is fundamental to making that possible," he said.
As the country prepares to enter the NDS2 implementation phase, both Government and stakeholders are aligning efforts toward ensuring that Zimbabwe's development ambitions are no longer stifled by unsustainable debt and limited access to capital.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said the country remains fully committed to the roadmap launched in late 2022, which has already recorded "tremendous progress" across key reform areas.
"The progress we've made is anchored on three strategic pillars: economic growth and stability reforms, governance reforms, and land tenure reforms. This includes measures such as the bankability of 99-year leases, compensation of former farm owners, and resolution of Bilateral Investment Promotion and Protection Agreements (BIPPAs)," said Prof Ncube.
He added that the consultative and inclusive approach adopted by the Government has fostered growing consensus and trust among stakeholders.
"Access to concessional external financing is key to achieving the goals of NDS2 and ultimately Vision 2030. Therefore, the Government is prioritising the full implementation of this Structured Dialogue process to ensure we can secure the long-term capital needed for national development," said Prof Ncube.
"Since December 2022, we have seen significant progress in implementing reforms under the three strategic pillars, with support from Sector Working Groups," said Guvamatanga. "Despite occasional challenges, our reform commitment remains firm, with a clear focus on unlocking concessional financing to meet our development goals."
Zimbabwe's total public and publicly guaranteed debt stood at US$21.5 billion as of December 31, 2024 - up from US$21.2 billion a year earlier - representing 47.1% of GDP. The debt is split between US$13.2 billion in external debt and US$8.3 billion in domestic debt.
Guvamatanga highlighted that resolving the debt burden is not only crucial for the public sector but also for empowering private enterprise.
"The private sector is undeniably a key engine of economic growth. By resolving our debt issues, we will enhance its access to long-term financing, enable job creation, and support innovation. Our people deserve access to opportunities, and this process is fundamental to making that possible," he said.
As the country prepares to enter the NDS2 implementation phase, both Government and stakeholders are aligning efforts toward ensuring that Zimbabwe's development ambitions are no longer stifled by unsustainable debt and limited access to capital.
Source - Business Times
