Chronicle Editor
Prosper Ndlovu, [email protected]
GOVERNMENT has been commended for scoring several milestones in the implementation of reforms under the Arrears Clearance and Debt Resolution process, a critical step towards transforming the economy and unlocking higher investment opportunities.
Sector Working Group (SWG) Co-Chairs of the Structured Dialogue Platform (SDP) on Arrears Clearance and Debt Resolution Process, highlighted the key milestones achieved so far during a Technical Meeting held in Harare on Monday.
The debt resolution process is a crucial step in enabling the Government to address the long-standing debt overhang challenge that remains a significant obstacle to the country’s development efforts.
Zimbabwe’s total public debt hovers around US$21 billion as at June 2024 with external debt at US$12,3 billion while domestic debt amounts to US$8,7 billion.
External debt is owed to bilateral and multilateral creditors, with the latter accounting for US$3,1 billion.
Out of this multilateral debt, US$681 million is owed to the African Development Bank (AfDB), US$1,5 billion to the World Bank, and US$427 million to the European Investment Bank.
In December 2022, Government established a Structured Dialogue Platform with all creditors and development partners, to institutionalise structured dialogue on economic and governance reforms to underpin the Arrears Clearance and Debt Resolution process.
The process is being championed by AfDB president Dr Akinwumi Adesina and supported by the High-Level Facilitator, former President Joachim Chissano of Mozambique.
During the meeting on Monday, Government was encouraged to maintain the ongoing dialogue and to accelerate efforts to achieve the set goals and targets outlined in the three matrices of the SWGs, as this will ensure objectives of the debt resolution process are achieved, according to a joint press release issued Wednesday.
The SWGs are tasked with focusing discussions on Government’s implementation of reforms under the three key strategic pillars guiding the process.
These include Economic Growth and Stability Reforms, Governance Reforms, and Land Tenure Reforms, Compensation for Former Farm Owners (FFOs), and the Resolution of Bilateral Investment Protection and Promotion Agreements (BIPPAs).
Head of Zimbabwe Public Debt Management Office, Mr Andrew Bvumbe, commended the SWG co-chairs for their diligence and reiterated that the Government takes full ownership, and is committed to the implementation of its reform agenda under the debt resolution process.
Government recently appointed Financial and Legal Advisors, Global Sovereign Advisory and Kelper-Karst Law firm, with support from the African Legal Support Facility to assist with the implementation of the Arrears Clearance and Debt Resolution process.
SDP members who attended the meeting include senior Government officials, development partners, and representatives from the private sector, civil society organisations (CSOs), and the advisors to former President Chissano.
On behalf of the co-chair of Land Tenure Reforms SWG, Deputy Chief Secretary to the President and Cabinet, Mr Willard Manungo, and Chief Director in the OPC, Mrs Anna Tinarwo, highlighted ongoing efforts to make the 99-year lease bankable and tradable.
Regarding the compensation of former farm owners, so far 444 farms have been cleared for payment, reads the update. Government has allocated US$35 million in the 2024 Budget for compensating former farm owners who are part of the Global Compensation Deed signed in 2020.
Land Tenure Reforms are also part of the National Development Strategy 1 Thematic Working Group on Image Building, Engagement and Re-Engagement process for the country.
On the Economic Growth and Stability Reforms, Co-Chair Mr Fidelis Ngorora, Chief Director in the Ministry of Finance, Economic Development, and Investment Promotion, reported progress, including the transfer of the country’s foreign currency-denominated liabilities from the Reserve Bank of Zimbabwe to the Treasury and the establishment of the willing seller- willing buyer foreign exchange system.
Commenting on the ongoing technical discussions between the Government and the International Monetary Fund (IMF) that will inform a Staff Monitored Programme (SMP), Mr Ngorora stated that both parties are “reaching a common understanding on most critical issues to move forward to the next step”.
The IMF delegation is in the country for its third mission this year. He also mentioned the introduction of the new structured currency, the Zimbabwe Gold, and social protection measures being implemented by the Government.
Co-chair, Mrs Vimbai Nyemba, Permanent Secretary in the Ministry of Justice, Legal and Parliamentary Affairs highlighted various achievements since April this year including the drafting of five bills; Anti-Corruption Bill, Public Interest Disclosure Bill, Protection of Whistleblowers Bill, Witness Protection Bill and Zimbabwe Anti-Corruption Act Amendment Bill, all of which are going through the legislative drafting processes.
Representing CSOs, Zimbabwe Institute Executive Director, Mr Isaac Maphosa appreciated Government’s engagement with CSOs on the PVO Bill, underscoring the CSOs eagerness for a genuine partnership.
Development partners, represented by European Union Ambassador Jobst Von Kirchman, Switzerland’s Ambassador Stephanie Rey, the UNDP Resident Representative Dr Ayodele Odusola, and World Bank Senior Country Economist Victor Steenbergen, acknowledged the milestones achieved by the Government under the three pillars guiding the debt resolution process.
They offered support to Zimbabwe, stressing the importance of maintaining dialogue and strengthening macro-economic framework, particularly in implementing the SMP, accelerating implementation of agreed reforms, and continuing collaborative to ensure success of the debt process.
Private sector representative, Mr Tinashe Masiiwa of the Bankers Association of Zimbabwe, said Zimbabwe is moving in the right direction on bankability and transferability of the 99-year lease, emphasizing the importance of enacting policies that instil confidence in the private sector.
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