Online Reporter
Africa Moyo
Deputy National Editor
THE foundations for Zimbabwe’s full reintegration into the international financial system are now in place following significant progress under the country’s Arrears Clearance and Debt Resolution Process, Finance, Economic Development and Investment Promotion Permanent Secretary Mr George Guvamatanga has said.
Writing in the second edition of the Structured Dialogue Platform (SDP) Booklet on Zimbabwe’s Arrears Clearance and Debt Resolution Process, Mr Guvamatanga said reforms being implemented under the country’s debt resolution roadmap were yielding positive results and positioning the country for renewed engagement with international financiers and creditors.
“The foundations for the country’s full reintegration into the international financial system are now in place,” said Mr Guvamatanga.
“With NDS2 now under implementation, the Government remains fully committed to maintaining prudent fiscal and monetary policies for long-term macroeconomic stability and debt sustainability for Zimbabwe.”
His remarks come as the country intensifies efforts to clear arrears and restructure debt, a process seen as critical to unlocking access to concessional financing needed to fund infrastructure development, social services and economic transformation programmes under Vision 2030.
Mr Guvamatanga said Zimbabwe had reached a critical juncture in its arrears clearance and debt resolution process.
“The technical milestones achieved across the three strategic reform pillars are a testament that it is no longer business as usual,” he said.
Under the Economic Growth and Stability Reforms Pillar, Mr Guvamatanga said Government’s stabilisation measures were producing positive outcomes, highlighted by stable single-digit inflation for the first time in nearly three decades.
He also hailed the recent successful completion of the International Monetary Fund Staff Monitored Programme (SMP), describing it as a major step towards strengthening the country’s macroeconomic reform credentials.
“The SMP will bolster macroeconomic stability, provide a policy and reform implementation track record, and serve as a critical step towards arrears clearance and debt restructuring,” he said.
On land reforms, compensation of former farm owners and Bilateral Investment Promotion and Protection Agreements (BIPPAs), Mr Guvamatanga said Government had remained steadfast in honouring its constitutional obligations.
He noted that compensation of investors protected under BIPPAs as well as Former Farm Owners under the Global Compensation Deed was continuing, with over US$40 million paid so far.
Mr Guvamatanga also highlighted progress under the Governance Reforms Pillar, saying engagement among Government, civil society organisations and development partners remained robust through the Governance Sector Working Group.
He added that the collaborative approach had enabled stakeholders to track and implement key governance reforms under the SDP framework.
The Structured Dialogue Platform was established in December 2022 by President Mnangagwa, with former Mozambican President Joaquim Chissano serving as High-Level Facilitator and former African Development Bank president Dr Akinwumi Adesina acting as champion of the process.
The initiative seeks to build consensus among creditors, development partners and stakeholders while implementing reforms necessary for Zimbabwe’s debt resolution.
As of December 31 last year, the total public and publicly guaranteed debt stood at US$21,8 billion, comprising external debt of US$11,8 billion and domestic debt of US$10 billion.
Government expects that continued implementation of reforms under the arrears’ clearance roadmap will pave the way for debt restructuring, restoration of debt sustainability and renewed access to affordable long-term financing essential for achieving the objectives of the National Development Strategy 2 and Vision 2030.
