Online Reporter
Oliver Kazunga
Senior Reporter
ZIMBABWE has moved into the decisive implementation phase of its debt resolution programme, a breakthrough that could unlock billions of dollars in international financing, restore debt sustainability and accelerate economic growth.
The Government has since reached a Staff-Level Agreement with the International Monetary Fund (IMF) on a 10-month Staff-Monitored Programme (SMP), which became effective on March 1, 2026, marking a major milestone under the Arrears Clearance and Debt Resolution (AC&DR) Roadmap.
In a latest update on Zimbabwe Arrears Clearance and Debt Resolution Process progress, the Ministry of Finance and Economic Development and Investment Promotion said the programme was central to restoring macroeconomic stability and unlocking international support.
“Government has reached a Staff Level Agreement on a 10-month SMP with the IMF. The SMP is effective 1 March 2026 and is vital for macroeconomic stability, provides a policy and reform implementation track record, and serves as a critical step towards arrears clearance. Official partners see the SMP as a prerequisite for providing concrete financial support,” reads part of the report.
The successful implementation of the programme is expected to position Zimbabwe for an IMF Upper Credit Tranche (UCT)-quality financing programme, clear arrears with international financial institutions and pave the way for comprehensive debt restructuring with bilateral creditors.
The roadmap, contained in the report, outlines a two-phase strategy aimed at restoring macroeconomic stability, rebuilding international confidence and creating conditions for sustainable economic growth.
The first phase focuses on implementing the IMF Staff-Monitored Programme while mobilising resources to clear arrears owed to major international financial institutions. The second phase will commence after approval of an IMF financing programme and culminate in final debt restructuring agreements with bilateral creditors.
Zimbabwe currently owes approximately US$2,7 billion in arrears to three major International Financial Institutions (IFIs) — US$1,5 billion to the World Bank Group, US$740 million to the African Development Bank Group and US$435 million to the European Investment Bank.
The report identifies clearing these arrears as the most critical stage of the entire debt resolution process.
“This is the most critical juncture for Zimbabwe, where Government requires external support built upon successful implementation of the SMP. Government has accumulated US$2,7 billion arrears with the three major IFIs.
“Specifically, US$1,5 billion is owed to the World Bank Group, US$740 million to the African Development Bank Group, and US$435 million to the European Investment Bank.
“Clearing these arrears is an essential prerequisite for Government to obtain an IMF financing program and unlock critical access to concessional development financing.
“This will allow Government to progress into the final stage of the AC&DR Process: the implementation of comprehensive debt restructuring of bilateral debt to restore public debt sustainability,” it said.
Presently, Government is exploring different sources of funding to clear the arrears through official financing on concessional and semi-concessional terms, while also pursuing alternative financing arrangements that leverage on Zimbabwe’s assets.
The report states that Government is actively engaging international financial institutions to develop a concrete financing proposal following approval of the Staff-Monitored Programme.
Once arrears have been cleared and the SMP successfully completed, Zimbabwe is expected to transition to an IMF Upper Credit Tranche programme, providing the foundation for comprehensive restructuring of bilateral and commercial debt.
The Government also intends to seek eligibility for debt treatment under the G20 Common Framework should Zimbabwe qualify.
In another significant development, France and the United Kingdom have agreed to co-chair a new Debt Consultative Group together with the Ministry of Finance, Economic Development and Investment Promotion and the Reserve Bank of Zimbabwe.
The platform will provide a structured and transparent mechanism for engagement between Government, creditors, development partners and other stakeholders as Zimbabwe advances the arrears clearance and debt restructuring process. Its inaugural meeting is expected later this month.
Authorities said reforms under the SMP remained at the centre of the debt resolution strategy.
“The Government of Zimbabwe remains committed to implementing reforms underpinning the Structured Dialogue Platform (SDP) under the country’s Arrears Clearance and Debt Resolution Process.
“Working alongside the Champion, High-Level Facilitator, bilateral and multilateral creditors, development partners, and strategic advisors, Government is diligently executing the Arrears Clearance and Debt Restructuring Roadmap.
“This process has already started with the implementation of reforms under the 10-month IMF Staff-Monitored Program, focusing on sustained fiscal discipline, tight monetary policy, exchange rate reforms and economic governance, including strengthening social protection.
“Our core objective is to clear arrears and restructure the external debt in order to attain long-term debt sustainability, which will unlock new concessional financing needed to achieve our National Development Strategy 2 goals.”
