Zimbabwe in US$23 billion external burden, US$10 billion domestic debt

Zimbabwe's growing debt crisis has emerged as a major threat to economic development, with the country's external debt estimated between US$21 billion and US$23 billion, while domestic debt has risen to nearly US$10 billion.

The figures were highlighted during the two-day 8th Annual Debt Conference held in Masvingo from 15 to 16 July 2026 under the theme "Rethinking Sovereign Debt Management in Zimbabwe: Justice, Sovereignty and People-Centred Socio-Economic Development in a Global Polycrisis."

The conference, organised by the Zimbabwe Coalition on Debt and Development (ZIMCODD) in partnership with TellZim News, brought together government representatives, local authorities, civil society organisations and economic experts to deliberate on Zimbabwe's debt challenges and possible solutions.

Presenting the conference declaration, ZIMCODD Executive Director John Maketo said Zimbabwe's debt crisis had been worsened by global challenges, including climate change, geopolitical tensions, armed conflicts, trade disputes and widening inequalities.

"We recognise that Zimbabwe's Public and Publicly Guaranteed debt, estimated at between US$21 billion and US$23 billion, continues to constrain structural transformation, limit fiscal space, reduce investor confidence and compromise the State's ability to fulfil its constitutional and developmental obligations," Maketo said.

He warned that the rising domestic debt burden posed equally significant risks, with weak public financial management, corruption, procurement irregularities, exchange-rate distortions, inflated public contracts and the accumulation of government arrears contributing to increased indebtedness.

The conference noted that debt servicing currently consumes about 11 percent of mobilised government revenues, reducing resources available for critical areas such as healthcare, education, social protection, infrastructure development and local government services.

Maketo said Zimbabwe's debt challenges should not be viewed solely as an economic problem but as an issue involving governance, justice, human dignity and citizens' rights.

"Sovereign debt is not merely a macroeconomic challenge but fundamentally a question of justice, governance, democracy, human rights, intergenerational equity and national sovereignty. Unsustainable debt undermines citizens' dignity by diverting scarce public resources away from essential services including health, education, social protection, infrastructure and local government development," he said.

The conference also highlighted the impact of debt on women and young people, noting that reduced public investment increases pressure on unpaid care work, particularly among women. Delegates said women in mining communities were experiencing unique challenges due to inadequate investment in areas where natural resources are extracted, while fiscal and monetary policies often failed to reflect Zimbabwe's increasingly informal economy.

Maketo called for greater transparency in public borrowing, saying citizens had a right to know the country's debt position, creditors and how borrowed funds were utilised.

"Public debt is public business. Citizens have a right to know how much the country owes, who it owes, and what the money was used for. We need comprehensive public education and disclosure so that citizens can hold their leaders accountable," he said.

He said debt management should contribute towards reducing poverty, unemployment and inequality, while ensuring that citizens are meaningfully involved in decisions affecting national borrowing.

"We commit ourselves to advancing transparent and accountable debt governance, strengthening domestic resource mobilisation, promoting productive borrowing, protecting social investments, and advocating for a fair and equitable global financial architecture," Maketo said.

Delegates called for comprehensive debt relief for countries facing unsustainable debt burdens and urged that climate finance should largely be provided through grants and highly concessional funding rather than additional loans.

The conference also called for reforms to international financial institutions to ensure fairer representation for African countries and supported the establishment of a United Nations Framework Convention on Sovereign Debt to create transparent and legally binding debt restructuring mechanisms.

On domestic debt, delegates called for stronger fiscal reforms, improved public financial management systems, measures to combat corruption and illicit financial flows, modernisation of tax administration through digital technologies, and transparent management of Zimbabwe's mineral wealth.

They further urged government to conduct comprehensive public debt audits to identify non-performing and questionable debt, publish information on borrowing and debt utilisation, strengthen parliamentary oversight over borrowing and enhance the independence of oversight institutions such as the Public Accounts Committee and the Auditor-General's Office.

The conference also called for the protection of essential social spending during debt resolution efforts, particularly funding for health, education, social protection and local government services. Delegates supported continued development of social protection systems, including initiatives to improve identification of vulnerable beneficiaries of government assistance programmes.

Concerns were also raised over the impact of public borrowing on private sector growth. Delegates said government arrears owed to businesses were constraining liquidity and investment, and called for the accelerated settlement of verified domestic debts, restructuring of debt maturities and improved access to affordable financing.

The conference urged Zimbabwe to strengthen its participation in continental debt reform initiatives, including joining regional platforms focused on sovereign debt management and implementing commitments under the Lomé and Harare Declarations as well as the Common African Position on Debt.

ZIMCODD said sustainable debt management must ultimately place citizens at the centre of economic policy by promoting inclusive growth, reducing inequality and ensuring that public borrowing supports national development rather than undermining it.