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Zimbabwe in debt distress, claims World Bank
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Zimbabwe's public debt has reached unsustainable levels, limiting the country's access to international financing, the World Bank has warned in a new report.
The multilateral lender put Zimbabwe's debt at US$23.3 billion, US$2.2 billion higher than Treasury's declared figures. The IMF recently confirmed the same figure in its latest Article IV Consultation, casting doubt on the US$21 billion public debt reported by the Ministry of Finance in May.
"Zimbabwe continues to be in debt distress, with high and unsustainable public debt that limits its access to international financing," the World Bank said. Total public debt reached 72.9% of GDP in 2024, with arrears owed to the World Bank, African Development Bank, and European Investment Bank.
Zimbabwe has been defaulting on international loans since 2000, following the controversial land reform programme under former President Robert Mugabe. Its largest Paris Club creditors — Germany, France, the UK, Japan, and the US — account for 74% of the country's Paris Club debt, amounting to US$2.9 billion.
The World Bank highlighted that structural challenges — including macroeconomic volatility, reliance on low-productivity agriculture, climate shocks, and high inequality — have constrained poverty reduction.
Despite the challenges, the report noted opportunities for growth, citing Zimbabwe's highly educated workforce, natural resource endowment, and recent economic policy advances.
Zimbabwe's GDP grew just 1.7% in 2024, impacted by drought and low commodity prices. However, the IMF projects growth of 6.6% in 2025, supported by a strong agricultural season, record-high gold prices, and robust remittance inflows.
The World Bank cautioned that the recovery remains fragile, with fiscal risks, domestic arrears, weak foreign reserve buffers, and governance vulnerabilities posing ongoing challenges. It called on authorities to implement reforms to safeguard macroeconomic stability, strengthen public financial management, and improve monetary and foreign exchange frameworks.
The multilateral lender put Zimbabwe's debt at US$23.3 billion, US$2.2 billion higher than Treasury's declared figures. The IMF recently confirmed the same figure in its latest Article IV Consultation, casting doubt on the US$21 billion public debt reported by the Ministry of Finance in May.
"Zimbabwe continues to be in debt distress, with high and unsustainable public debt that limits its access to international financing," the World Bank said. Total public debt reached 72.9% of GDP in 2024, with arrears owed to the World Bank, African Development Bank, and European Investment Bank.
Zimbabwe has been defaulting on international loans since 2000, following the controversial land reform programme under former President Robert Mugabe. Its largest Paris Club creditors — Germany, France, the UK, Japan, and the US — account for 74% of the country's Paris Club debt, amounting to US$2.9 billion.
Despite the challenges, the report noted opportunities for growth, citing Zimbabwe's highly educated workforce, natural resource endowment, and recent economic policy advances.
Zimbabwe's GDP grew just 1.7% in 2024, impacted by drought and low commodity prices. However, the IMF projects growth of 6.6% in 2025, supported by a strong agricultural season, record-high gold prices, and robust remittance inflows.
The World Bank cautioned that the recovery remains fragile, with fiscal risks, domestic arrears, weak foreign reserve buffers, and governance vulnerabilities posing ongoing challenges. It called on authorities to implement reforms to safeguard macroeconomic stability, strengthen public financial management, and improve monetary and foreign exchange frameworks.
Source - The Standard
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