Online Reporter
Oliver Kazunga
Senior Reporter
THE African Development Bank has launched a US$4 million programme to accelerate Zimbabwe’s arrears clearance and debt resolution process, a major step expected to unlock international development financing and boost investor confidence.
The move is expected to also support the country’s drive towards an upper-middle-income society by 2030.
The three-year programme, which is called the Zimbabwe Arrears Clearance Dialogue Enhancement Project (ZACDEP), runs until June 2029 — and is expected to strengthen the Government’s engagement with international creditors while supporting key economic, governance and land reforms that underpin the country’s debt resolution roadmap.
The project comes as Zimbabwe intensifies efforts to normalise relations with international financial institutions following the recent successful conclusion of the first review of the International Monetary Fund’s Staff Monitored Programme.
Speaking at the ZACDEP launch event in Harare yesterday, the head of the Zimbabwe Public Debt Management Office, Mr Andrew Bvumbe, who was represented by deputy director for monitoring compliance and risk management Mr Tinotenda Karise, said resolving the country’s arrears remained critical to unlocking affordable development financing and attracting new investment into the economy.
“The clearance of arrears and debt resolution remains critical for macroeconomic stabilisation, promoting inward investments into our economy, unlocking development financing and achieving inclusive and sustainable economic growth.
“We are grateful to the AfDB for availing resources amounting to (UA3 million, approximately US$4 million) for this project.
“The project grant agreement was signed on 30 June 2026 and today marks the beginning of implementation for a period of three years up to 30 June 2029,” he said.
Mr Bvumbe said the US$4 million grant agreement marks a new phase in the implementation of Zimbabwe’s arrears clearance and debt resolution strategy.
He said the project would support the implementation of the arrears clearance roadmap, strengthen public debt management, improve governance, and reinforce oversight institutions, while building national consensus around reforms.
“The specific objectives of the project are to: support implementation of the Arrears Clearance and Debt Resolution Roadmap and economic stabilisation reforms; and create an enabling environment for arrears clearance and economic stabilisation through public debt, governance, land and oversight functions of state and non-state institutions,” said Mr Bvumbe.
He said ZACDEP was a new programme building on gains made under its predecessor—the Support for Arrears Clearance and Governance Enhancement Project (SACAGE) Project, which ended last month after helping establish structured dialogue between the Government, creditors, development partners, civil society and the private sector.
The initiative, Mr Bvumbe said, had created sector working groups focusing on economic growth and stability, governance and land tenure reforms, providing an institutional platform for resolving long-standing economic challenges.
“The successor project has allowed a conversation between key stakeholders in order to address our challenges. This has allowed us to speak to each other and not to speak about each other,” said Mr Bvumbe.
He said Government had also made notable progress under the debt resolution roadmap through implementation of the IMF Staff-Monitored Programme and continued compensation of former farm owners under Bilateral Investment Promotion and Protection Agreements, measures aimed at strengthening property rights and investor confidence.
The AfDB country manager for Zimbabwe, Ms Eyerusalem Fasika, who was represented by the bank’s officer-in-charge, Mr Webster Gondo, reaffirmed the financier’s commitment to supporting Zimbabwe’s arrears clearance and debt resolution process through the structured dialogue platform centred on economic reforms, governance and land compensation.
“The bank remains committed to supporting Zimbabwe’s Areas Clearance and Direct Resolution through the structured Dialogue Platform and its central project, namely economic growth, governance, land and compensation of former farm owners.
“If supported by a dedicated sector working group, we commend Government for engaging creditors and stakeholders for undertaking bold but necessary reforms critical to economic recovery,” she said.
“As the process starts for the implementation of the project, I call upon more stakeholders to rally behind Government in its support for the execution of the project.
“The bank realises that building local consensus through engagement with State institutions, civil society and private sector cannot be overemphasised.
“As such, it is important that the sector working groups should be used as platforms for ensuring that their agreed priorities through matrices aligned to each sector are aligned with National Development Strategy 2 (NDS2) as well as other regional and international indicators as protocols.”
NDS2, which runs between 2026 and 2030, seeks to consolidate the achievements recorded under NDS1 (2021-2025) and accelerate the transformational process for attaining Vision 2030.
The bank said the project’s implementation comes at an opportune time as Zimbabwe advances reforms under the IMF Staff-Monitored Programme and seeks to deepen engagement with international creditors.
Zimbabwe’s arrears clearance and debt resolution process is being led by President Mnangagwa with support from former AfDB president Dr Akinwumi Adesina as the champion, and former Mozambican President Joaquim Chissano, who have facilitated structured engagement between Zimbabwe and its international creditors as the country works towards restoring full access to international capital markets.
