Zimbabwe asks South Africa to back G-20 debt overhaul

Zimbabwe has asked South Africa to help garner support for its debt to be revamped under the Group of 20's Common Framework, a step that could restore its access to international capital markets for the first time in more than 25 years.

"South Africa has been approached by Zimbabwe to consider assisting the country in mobilizing international support for Zimbabwe's planned application for debt treatment under the Common Framework," South Africa's National Treasury said in an emailed response to Bloomberg questions.

South Africa, led by Cyril Ramaphosa, currently holds the G-20 presidency and will hand over the reins later this year to US President Donald Trump.

The framework was created in 2020 to help poor nations bring together a diverse set of creditors to restructure debts. Zambia, Ethiopia and Ghana have used the template, which has been criticized for being too slow.

The framework is being "explored," according to the head of Zimbabwe's Public Debt Management Office Andrew Bvumbe. "We want to maximize the debt relief to the country," he said Wednesday by text message.

It has appealed to 10 nations to assist in raising $2.6 billion in bridge finance but is yet to receive any concrete commitments.

"South Africa has not been approached to consider providing bridge finance to Zimbabwe," the National Treasury said.

Africa's largest economy is owed $24 million by its neighbor, according to data provided by the Zimbabwean Treasury.