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Enacy Mapakame
Business Reporter
The civil society has commended the Government for spearheading the structured Dialogue Platform for Zimbabwe’s arrears clearance and debt resolution process, which saw its fourth meeting this week.
Civil society also praised the Reserve Bank of Zimbabwe (RBZ) initiatives to bring currency and inflation stability to an end, given that volatility and fluctuations of the US dollar tend to increase the cost of borrowing and debt servicing.
In December last year, the Government established a structured dialogue platform with all creditors and development partners, to institutionalise structured discussions on economic and governance reforms to underpin the arrears clearance and debt resolution process.
Economics advisor to the Government on arrears clearance, Alexis Ferrand, outlined the economic reforms matrix’s long-term and short-to-medium-term strategies, expected to anchor sustained inclusive economic growth, increased investment opportunities, and job creation.
The matrix is centred on enhancing service delivery, public sector transparency and accountability, combating corruption, and promoting human rights. It also covers electoral reforms, national unity, peace, and reconciliation.
Speaking at the fifth Zimbabwe Annual Debt Conference in Harare, African Forum and Network on Debt and Development (AFRODAD) executive director Jason Braganza said civil society was upbeat the efforts would be fruitful as there was no reason for them to fail.
“It is with great excitement that we welcome this programme. There’s no reason why this programme will not work for Zimbabwe and for the people of Zimbabwe,” said Mr Braganza.
“The arrears clearance programme has been on the reform agenda that is geared towards the principles of prudent debt, debt management and debt sustainability. It equally opens up the economy for investment, not just external but for domestic investment
“This is an exciting moment that we must all take advantage of and be part of. Therefore, I want to congratulate the Government for its continued efforts to involve all stakeholders, and particularly civil society,” he said.
Zimbabwe’s debt clearance process is being championed by African Development Bank (AfDB) president Dr Akinumwi Adesina and former Mozambican President Joaquim Chissano, who has been designated as high-level facilitator. Both were in the country for a high-level debt resolution forum on 15 May 2023.
President Mnangagwa appointed Dr Adesina as a champion in July 2022.
Zimbabwe’s total consolidated debt stands at U$17,5 billion. Debt owed to international creditors stands at US$14,04 billion, while domestic debt stands at US$3,4 billion.
Debt owed to bilateral creditors is estimated at US$5,75 billion, while debt to multilateral creditors is estimated at US$2,5 billion. The country is in arrears for servicing its debt, with arrears to multilateral development banks, including the AfDB, the World Bank, and the European Investment Bank.
The fourth structured dialogue platform meetings come on the heels of previous ones held in December 2022, and in February and March 2023.
The dialogue meetings are expected to continue after elections due in August this year.
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