Nqobile Bhebhe, Zimpapers Writer
THE Government has secured financial and technical support from the African Development Fund (ADF) to accelerate Zimbabwe’s arrears clearance and debt resolution efforts, in a development expected to strengthen engagement with international creditors and build institutional capacity for sustainable debt management.
The grant will finance the Zimbabwe Arrears Clearance Dialogue Enhancement Project (ZACDEP), which will be implemented over three years, focusing on deepening dialogue, building consensus and strengthening the institutional foundations necessary for implementing the country’s arrears clearance and debt resolution roadmap.
Zimbabwe’s arrears clearance programme is a critical component of broader economic re-engagement efforts, as the country seeks to normalise relations with international financial institutions, restore access to long-term development financing and create greater fiscal space to support economic transformation.
Government is targeting March 2027 to resolve its longstanding external debt crisis and arrears, as the administration intensifies efforts to secure international financing to restore access to affordable capital and unlock funding for economic development.
According to the notice, the main objective of the project is to enhance dialogue and build consensus on prerequisites for implementation of a roadmap for financing and clearance of Zimbabwe’s arrears.
The intervention comes as the Government continues pursuing a structured approach to resolving its external debt obligations, with dialogue, governance reforms and compensation commitments forming important elements of the process.
The project has three major components, beginning with enhanced dialogue on arrears clearance and debt resolution.
This component seeks to support ongoing engagement processes and will be implemented through
accelerated and deepened dialogue on the implementation of the Arrears Clearance and Debt
Resolution Roadmap, alongside the provision of advisory services on arrears clearance, debt resolution and engagement with creditors.
The emphasis on technical advisory support is expected to strengthen the country’s capacity to navigate complex debt negotiations while building consensus around the policy and institutional measures required to move the process forward.
The second component focuses on strengthening Government capacity in public debt management, arrears clearance, land tenure and governance.
According to the project document, the component “seeks to strengthen the Government’s capacity in its pursuit and quest to engage with its creditors and have arrears cleared.”
It will support enhanced capacity in public debt management and debt resolution while also strengthening governance and management of land tenure reforms and compensation of former farm owners.
The latter is particularly important given the role of land-related compensation commitments under the Global Compensation Deed and Bilateral Investment Partnership Promotion Agreements in Zimbabwe’s broader debt resolution and international re-engagement agenda.
The project specifically identifies the need to “Strengthen capacity on governance and management of Land Tenure Reforms and Compensations of Former Farm Owners under the Global Compensation Deed and Bilateral Investment Partnership Promotion Agreements.”
This creates an opportunity to improve institutional coordination, strengthen implementation capacity and reinforce confidence in the country’s commitments as it engages creditors and development partners.
The third component will support project management, ensuring effective coordination, financial management, procurement and oversight of implementation activities.
The project will also use different procurement methods, including National Competitive Bidding, Requests for Quotations, Quality and Cost Based Selection, Least Cost Selection and Individual Consultants.
The AfDB-supported intervention represents an important investment in the institutional and technical processes underpinning debt resolution.
Successful implementation could strengthen the country’s credibility in international financial engagements, improve its capacity to manage public debt and advance efforts to unlock concessional financing for infrastructure, industrial development and other national priorities.
