IMF, World Bank urged to back Zimbabwe economic recovery efforts

Former Mozambican President Dr Joaquim Chissano and African Development Bank (AfDB) President Dr Akinwumi Adesina have called on the International Monetary Fund (IMF) and the World Bank to support Zimbabwe's economic recovery efforts, emphasizing that the country's revival could have significant positive effects on the Southern African Development Community (SADC) region and beyond.

The call was made during Zimbabwe's participation in the IMF and World Bank Group's Annual and Spring Meetings, taking place in Washington DC, US. The meetings gather key global economic leaders, including central bankers, ministers of finance, private sector executives, and civil society representatives, to discuss global economic trends, financial stability, and poverty reduction.

Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube is leading the Zimbabwean delegation, which has been engaged in high-level discussions with the IMF to outline Zimbabwe's economic reforms and plans for debt sustainability. A crucial meeting took place yesterday with IMF Executive Director Mr Adriano Isais Ubise, where Zimbabwe's progress under its arrears clearance and debt resolution efforts was highlighted.

In a statement issued by the Ministry of Finance, the government emphasized that Zimbabwe has made notable strides in key reform areas, including land tenure, governance, and economic restructuring. The country has reached an agreement with the IMF on a Staff Monitored Programme (SMP), which is seen as a critical step towards achieving sustainable economic development and aligning with Zimbabwe's Vision 2030.

"This is a big step forward for our nation's economic growth and prosperity," the Ministry of Finance stated. Zimbabwe's engagement with the IMF and World Bank reflects the government's commitment to achieving financial stability and attracting international support for its economic revival.

Former President Chissano and AfDB President Adesina, who serve as the High-Level Facilitator and Debt Champion for Zimbabwe's arrears clearance and debt resolution efforts, have underscored the importance of international support. They highlighted that Zimbabwe's recovery is essential not only for the country's economic health but also for the overall stability and integration of the SADC region.

The SADC Secretariat also expressed its commitment to supporting Zimbabwe's debt resolution process. SADC Executive Secretary Mr Elias Magosi, who participated in a briefing on Zimbabwe's arrears clearance efforts, called for expanded international backing. "Zimbabwe's economic recovery is critical to the Southern African Development Community's regional stability, economic integration, and sustainable development," Magosi stated during the briefing.

Zimbabwe's external debt currently stands at US$21 billion, with a significant portion of that debt in arrears, making it difficult for the country to access concessional loans from international institutions like the IMF and the World Bank. This debt overhang has hindered Zimbabwe's ability to secure the necessary funding for development projects and economic reform.

In a bid to resolve the crisis, President Mnangagwa appointed Dr Akinwumi Adesina as Champion of the Debt Clearance Process and Dr Joaquim Chissano as the High-Level Facilitator in 2022. These appointments have been crucial in rallying international support for Zimbabwe's efforts to clear its arrears and put the country back on a sustainable economic path.

Zimbabwe's engagement at the IMF and World Bank meetings has underscored the country's determination to overcome its economic challenges and chart a path towards prosperity, not only for its own citizens but for the entire Southern African region. The support of the IMF, World Bank, and other international stakeholders will be crucial in achieving Zimbabwe's economic goals and ensuring a stable and prosperous future for the country and its neighbors.