High-level event tackles Zim debt resolution

Africa Moyo in ABIDJAN, Côte d’Ivoire

A SIGNIFICANT high-level event centred on the Zimbabwe arrears clearance and debt resolution process will unfold in Abidjan, Côte d’Ivoire, tomorrow, taking place alongside the African Development Bank (AfDB) Annual Meetings.

This meeting of key stakeholders aims to tackle the pressing issues concerning Zimbabwe’s debt obligations, exploring potential solutions to arrears clearance, debt restructuring and overall financial stability, underscoring AfDB’s commitment to supporting member countries’ sustainable economic growth.

The session is expected to inject fresh momentum into the Structured Dialogue process, which has gained steady traction as Zimbabwe seeks to resolve its US$21 billion debt burden and restore international financial credibility.

The event aims to review progress made, reaffirm international support and mobilise fresh financial and technical assistance to help Zimbabwe address its debt and arrears.

Jointly organised by the AfDB and the Government, the event will bring together key international stakeholders — including creditors, donor countries and representatives of former commercial farmers — as the country continues to engage the global community in efforts to restore financial credibility and reintegrate into international financial markets.

In a statement, the AfDB said the event focuses on mobilising financial support for Zimbabwe’s arrears clearance efforts.

“Key stakeholders, including the bank’s shareholders, potential champion countries for bridge financing and representatives of compensated former farm owners, will play a central role in this critical initiative,” said the AfDB.

Running up to Friday, the AfDB annual meetings will feature a dedicated session on Zimbabwe.

According to the AfDB, there shall be a Davos-style panel featuring the designated champion of Zimbabwe’s debt clearance process and AfDB president, Dr Akinwumi Adesina; the high-level facilitator, former Mozambican President Joaquim Chissano; and Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube. Other panellists include AfDB executive director for Zimbabwe, Dr Luis Ngimbi; European Union (EU) Ambassador Jobst von Kirchmann; Swiss Ambassador Stéphane Rey; International Monetary Fund (IMF) country representative Mr Carlos Caceres; and the representative of former farm owners, Mr Andrew Pascoe.

Economist Mr Persistence Gwanyanya said the session was “significant and most welcome” and highlighted the substantial progress Zimbabwe made in recent years.

“As a country, we honestly seek to resolve our arrears and debt issues and we have registered significant progress since these discussions started,” he said.

“At the last discussion, we reviewed the progress, and almost all parties involved, including creditor nations, expressed some satisfaction with the progress recorded so far.

“Even the chairpersons of the different thematic committees that include representatives of the West and the IMF, and others, concurred that there has been significant progress in the different areas that we are working on in terms of arrears clearance.

“So, the side event at the AfDB annual meetings is obviously important to confirm that progress and we will also continue raising awareness in respect of the progress we are making as a country.”

While some have raised concerns about potential disruptions to the process ahead of Dr Adesina’s expected departure from the AfDB presidency, Mr Gwanyanya downplayed the fears.

He said the debt resolution process was institutional and not reliant on individuals.

To date, the AfDB has provided US$4,2 million to support the Structured Dialogue, including the financing of technical and legal advisers to assist in developing a comprehensive debt resolution road map.

The process gained momentum after President Mnangagwa appointed Dr Adesina in February 2022 to lead the arrears clearance effort and invited former President Chissano to facilitate dialogue on governance-related concerns with creditors.

At a recent roundtable held in April on the sidelines of the IMF and World Bank Spring Meetings in Washington, DC, creditors and international organisations unanimously acknowledged the progress Zimbabwe had made, while noting outstanding challenges.

This year’s event follows a similarly well-attended side meeting held during the 2023 AfDB meetings in Sharm El-Sheikh, Egypt, where President Mnangagwa, Dr Adesina, Prof Ncube and key stakeholders engaged on the way forward.

Zimbabwe’s public debt stood at US$21 billion last year, comprising US$13 billion in external debt and US$8 billion in domestic obligations.