President happy with debt clearance process

Nduduzo Tshuma in WINDHOEK, Namibia

PRESIDENT MNANGAGWA and former Mozambican President Joaquim Chissano have agreed that the arrears clearance and debt resolution process is progressing well, highlighting the need for continuous engagement to expedite its goals.

The two leaders met here on Friday night at President Mnangagwa’s hotel.

As they emerged from the engagement hand in hand, former President Chissano said their discussions had touched on the debt clearance process.

“Yes, it was one of the issues, but it was just to apprise and update each other, and we agreed that the process is going on well,” he said.

“We need to continue insisting on exchanging views, and I am going to contact the other champion (Dr Akinwumi Adesina) to see if we can expedite the process.”

In 2022, President Mnangagwa appointed African Development Bank (AfDB) president Dr Adesina as the champion of the debt resolution and arrears clearance process, while President Chissano was appointed as a high-level facilitator.

The successful implementation of the Structured Dialogue Platform is crucial for Zimbabwe to clear arrears, achieve debt sustainability and unlock new concessional financing.

This is critical for achieving the country’s economic development objectives under the National Development Strategy 1 (NDS1), which ends this year, and its successor, NDS2, which runs for five years until 2030.

The implementation of reforms is being spearheaded by sector working groups. These are tasked with focusing discussions on the Government’s implementation of reforms under some strategic pillars.

These are economic growth and stability reforms, governance and land tenure, compensation for white former farm owners and the resolution of bilateral investment promotion and protection agreements (BIPPAs).

The Government has begun compensating investors whose farms were protected under the BIPPAs before the 2000 Land Reform Programme.

Following the approval of 94 claims valued at approximately US$145 million, the Government commenced payments in the second week of January this year, a development expected to provide momentum to the country’s arrears clearance and debt resolution process.

The country’s sovereign debt stands at US$21 billion, with a significant portion of its external debt overdue, blocking access to affordable long-term financing from multilateral lenders, including the World Bank and the AfDB.

Zimbabwe has reiterated its commitment to consolidating ongoing key reforms that are conditional to the debt clearance programme, expressing its willingness to continue working with all key stakeholders in seeking a sustainable solution to its debt situation.

Late last year, President Mnangagwa presided over a High-Level Structured Dialogue Forum in Harare, where he expressed appreciation for the support of former President Chissano and Dr Adesina in the country’s quest to clear its debt.