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Zimbabwe scores milestones on arrears clearance process
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The Government of Zimbabwe has received commendations for significant progress in the implementation of reforms under the Arrears Clearance and Debt Resolution process, a vital step towards transforming the economy and unlocking greater investment opportunities.
Key milestones achieved to date were highlighted during a Technical Meeting held in Harare on Monday, where Sector Working Group (SWG) Co-Chairs of the Structured Dialogue Platform (SDP) convened to discuss the way forward in addressing the country's long-standing debt overhang challenge.
As of June 2024, Zimbabwe's total public debt stands at approximately US$21 billion, with external debt reaching US$12.3 billion and domestic debt at US$8.7 billion. The external debt is owed to bilateral and multilateral creditors, including US$681 million to the African Development Bank (AfDB), US$1.5 billion to the World Bank, and US$427 million to the European Investment Bank.
In December 2022, the Government established a Structured Dialogue Platform to facilitate ongoing discussions with creditors and development partners, aimed at institutionalizing dialogue around economic and governance reforms. This initiative is being spearheaded by AfDB President Dr. Akinwumi Adesina, with support from High-Level Facilitator and former Mozambican President Joachim Chissano.
During Monday's meeting, the Government was encouraged to sustain the dialogue and expedite efforts to meet the objectives outlined in the three matrices of the SWGs. These matrices focus on three key strategic pillars: Economic Growth and Stability Reforms, Governance Reforms, and Land Tenure Reforms, including compensation for Former Farm Owners (FFOs) and the resolution of Bilateral Investment Protection and Promotion Agreements (BIPPAs).
Mr. Andrew Bvumbe, Head of the Zimbabwe Public Debt Management Office, praised the diligence of the SWG co-chairs and reaffirmed the Government's commitment to executing its reform agenda as part of the debt resolution process. Recently, the Government appointed financial and legal advisors, Global Sovereign Advisory and Kelper-Karst Law Firm, with backing from the African Legal Support Facility, to assist in these efforts.
The meeting included participation from senior Government officials, development partners, and representatives from the private sector and civil society organizations (CSOs). On behalf of the co-chair of the Land Tenure Reforms SWG, Deputy Chief Secretary to the President and Cabinet Mr. Willard Manungo and Chief Director in the Office of the President and Cabinet Mrs. Anna Tinarwo shared updates on making the 99-year lease bankable and tradable.
Regarding compensation for former farm owners, the Government has cleared 444 farms for payment and allocated US$35 million in the 2024 Budget for compensating those included in the Global Compensation Deed signed in 2020.
On the Economic Growth and Stability Reforms front, Co-Chair Mr. Fidelis Ngorora reported significant progress, including the transfer of the country's foreign currency-denominated liabilities from the Reserve Bank of Zimbabwe to the Treasury and the establishment of a willing seller-willing buyer foreign exchange system. He noted that ongoing technical discussions with the International Monetary Fund (IMF) are yielding positive results and facilitating the development of a Staff Monitored Programme (SMP).
Additionally, Mrs. Vimbai Nyemba, Permanent Secretary in the Ministry of Justice, Legal and Parliamentary Affairs, reported on the drafting of five key bills, including the Anti-Corruption Bill and the Protection of Whistleblowers Bill, which are currently progressing through the legislative process.
CSO representatives, including Zimbabwe Institute Executive Director Mr. Isaac Maphosa, expressed appreciation for the Government's engagement with CSOs regarding the Private Voluntary Organizations (PVO) Bill, highlighting the eagerness for a genuine partnership.
Development partners, represented by European Union Ambassador Jobst Von Kirchman, Switzerland's Ambassador Stephanie Rey, UNDP Resident Representative Dr. Ayodele Odusola, and World Bank Senior Country Economist Victor Steenbergen, acknowledged the milestones achieved under the debt resolution process. They emphasized the importance of maintaining dialogue and strengthening the macroeconomic framework, particularly in implementing the SMP and accelerating agreed reforms.
Private sector representative Mr. Tinashe Masiiwa of the Bankers Association of Zimbabwe noted that the country is making strides in the bankability and transferability of the 99-year lease, urging the enactment of policies that foster confidence within the private sector.
Overall, the Government's commitment to addressing its debt challenges through structured dialogue and comprehensive reforms signals a positive trajectory for Zimbabwe's economic future.
Key milestones achieved to date were highlighted during a Technical Meeting held in Harare on Monday, where Sector Working Group (SWG) Co-Chairs of the Structured Dialogue Platform (SDP) convened to discuss the way forward in addressing the country's long-standing debt overhang challenge.
As of June 2024, Zimbabwe's total public debt stands at approximately US$21 billion, with external debt reaching US$12.3 billion and domestic debt at US$8.7 billion. The external debt is owed to bilateral and multilateral creditors, including US$681 million to the African Development Bank (AfDB), US$1.5 billion to the World Bank, and US$427 million to the European Investment Bank.
In December 2022, the Government established a Structured Dialogue Platform to facilitate ongoing discussions with creditors and development partners, aimed at institutionalizing dialogue around economic and governance reforms. This initiative is being spearheaded by AfDB President Dr. Akinwumi Adesina, with support from High-Level Facilitator and former Mozambican President Joachim Chissano.
During Monday's meeting, the Government was encouraged to sustain the dialogue and expedite efforts to meet the objectives outlined in the three matrices of the SWGs. These matrices focus on three key strategic pillars: Economic Growth and Stability Reforms, Governance Reforms, and Land Tenure Reforms, including compensation for Former Farm Owners (FFOs) and the resolution of Bilateral Investment Protection and Promotion Agreements (BIPPAs).
Mr. Andrew Bvumbe, Head of the Zimbabwe Public Debt Management Office, praised the diligence of the SWG co-chairs and reaffirmed the Government's commitment to executing its reform agenda as part of the debt resolution process. Recently, the Government appointed financial and legal advisors, Global Sovereign Advisory and Kelper-Karst Law Firm, with backing from the African Legal Support Facility, to assist in these efforts.
The meeting included participation from senior Government officials, development partners, and representatives from the private sector and civil society organizations (CSOs). On behalf of the co-chair of the Land Tenure Reforms SWG, Deputy Chief Secretary to the President and Cabinet Mr. Willard Manungo and Chief Director in the Office of the President and Cabinet Mrs. Anna Tinarwo shared updates on making the 99-year lease bankable and tradable.
Regarding compensation for former farm owners, the Government has cleared 444 farms for payment and allocated US$35 million in the 2024 Budget for compensating those included in the Global Compensation Deed signed in 2020.
On the Economic Growth and Stability Reforms front, Co-Chair Mr. Fidelis Ngorora reported significant progress, including the transfer of the country's foreign currency-denominated liabilities from the Reserve Bank of Zimbabwe to the Treasury and the establishment of a willing seller-willing buyer foreign exchange system. He noted that ongoing technical discussions with the International Monetary Fund (IMF) are yielding positive results and facilitating the development of a Staff Monitored Programme (SMP).
Additionally, Mrs. Vimbai Nyemba, Permanent Secretary in the Ministry of Justice, Legal and Parliamentary Affairs, reported on the drafting of five key bills, including the Anti-Corruption Bill and the Protection of Whistleblowers Bill, which are currently progressing through the legislative process.
CSO representatives, including Zimbabwe Institute Executive Director Mr. Isaac Maphosa, expressed appreciation for the Government's engagement with CSOs regarding the Private Voluntary Organizations (PVO) Bill, highlighting the eagerness for a genuine partnership.
Development partners, represented by European Union Ambassador Jobst Von Kirchman, Switzerland's Ambassador Stephanie Rey, UNDP Resident Representative Dr. Ayodele Odusola, and World Bank Senior Country Economist Victor Steenbergen, acknowledged the milestones achieved under the debt resolution process. They emphasized the importance of maintaining dialogue and strengthening the macroeconomic framework, particularly in implementing the SMP and accelerating agreed reforms.
Private sector representative Mr. Tinashe Masiiwa of the Bankers Association of Zimbabwe noted that the country is making strides in the bankability and transferability of the 99-year lease, urging the enactment of policies that foster confidence within the private sector.
Overall, the Government's commitment to addressing its debt challenges through structured dialogue and comprehensive reforms signals a positive trajectory for Zimbabwe's economic future.
Source - The Chronicle
