Nqobile Bhebhe
Zimpapers Business Hub
ZIMBABWE is stepping up efforts to secure international support for debt resolution and arrears clearance to unlock concessional development finance and create new opportunities for investment in infrastructure, industry and job creation.
The country is making its case at the 2026 International Monetary Fund (IMF) and World Bank Annual Meetings in Bangkok, Thailand, from October 12–18, with Finance Minister Professor Mthuli Ncube leading a Zimbabwean delegation in engagements with key international financial institutions.
In an update, the Ministry of Finance said the Zimbabwean delegation met with World Bank Regional vice president for Eastern and Southern Africa, Mr Ndiame Diop, IMF executive director for Africa Group 1, Mr Adriano Ubisse and IMF African Department director, Mr Zeine Zeidane, to discuss Zimbabwe’s economic reform progress and the support required to resolve its outstanding debt obligations.
The engagements come as the Government seeks to translate improvements in macroeconomic stability into a credible, financed pathway towards arrears clearance and debt restructuring, a process considered important for restoring access to affordable development finance.
The ministry said discussions recognised Zimbabwe’s progress in restoring macroeconomic stability through prudent fiscal and monetary policies, reflected in single-digit inflation, a stable exchange rate, and stronger revenue performance.
Zimbabwe’s ongoing IMF Staff-Monitored Programme remains central to the country’s international re-engagement and efforts to establish a track record of policy implementation that can support negotiations on debt resolution.
Harare is presently unable to borrow from international financial institutions primarily due to its massive external arrears and debt default.
Zimbabwe’s inability to access cheap, long-term international funding (stemming from sovereign debt defaults around 1999–2000 and accumulated arrears with multilateral lenders like the IMF, World Bank and African Development Bank) has caused severe economic and social consequences, including limited space to finance key Government programmes, budget deficits and provide adequate social safety nets.
The country owes around $12,7 billion in overdue external debt to major lenders like the International Monetary Fund (IMF), the World Bank and the African Development Bank.
The country’s total public and external debt remains unsustainable (just over US$21 billion), severely constraining its fiscal space and creditworthiness.
To resolve the situation, the Government has been engaging in debt-resolution talks with key and development partners while seeking bridge-financing arrangements to clear its arrears.
“Zimbabwe’s ongoing IMF Staff-Monitored Programme (SMP) is supporting policy discipline and international re-engagement. The September staff-level agreement on the second review marks further progress toward building the track record needed for arrears clearance and debt restructuring,” the ministry said.
With the final SMP review expected in December, Zimbabwe is seeking coordinated backing from development partners to advance the process, including support for potential bridge financing arrangements and engagement on possible International Development Association (IDA) assistance, subject to applicable requirements and approvals.
Government is also addressing domestic arrears as part of broader efforts to improve fiscal management and strengthen the foundations for sustainable economic recovery.
The delegation also noted economic performance as part of Zimbabwe’s case for external support, pointing to growth of approximately 8 percent in 2025, projected growth of around 5 percent in 2026 and agricultural growth of 27 percent.
The figures underscore the importance of sustaining the recovery while addressing financing constraints that could limit investment and economic expansion.
Beyond debt resolution, the discussions covered social protection and climate resilience, with the Government completing a social registry intended to improve the targeting of assistance to vulnerable households.
The initiative is expected to strengthen the delivery of social support, including through the Basic Education Assistance Programme (BEAM), while the Government addresses outstanding social spending commitments under the SMP.
Climate resilience was another priority, particularly given the exposure of agricultural production and rural livelihoods to weather-related shocks.
“Priorities include strategic grain reserves, cash transfers and increased investment in cloud seeding to strengthen preparedness for climate shocks and protect livelihoods,” the ministry said.
The central objective is to secure international support that can convert its reform record into tangible economic benefits, particularly through improved access to financing for productive investment and public services.
“Zimbabwe is seeking development partners to champion the process, exploring bridge financing arrangements and engaging on potential International Development Association support, subject to applicable requirements and approvals. Government is also addressing domestic arrears,” the ministry said.
The country’s debt resolution efforts are significant for the investment climate because arrears clearance and progress towards restructuring could help improve relations with international creditors and development institutions, creating conditions for renewed access to concessional funding.
Such financing would be important for infrastructure development, economic diversification and the expansion of essential services, while potentially supporting private-sector confidence and long-term capital formation.
“Supporting Zimbabwe’s debt resolution would help consolidate stability, restore access to concessional development finance, unlock investment in jobs, infrastructure and essential public services,” the ministry said.
The ministry said Zimbabwe was calling for coordinated support to translate its reform progress into a credible, financed arrears clearance pathway, with the anticipated December conclusion of the SMP providing a key milestone in the process.
“The delegation expressed appreciation for the IMF and World Bank’s continued engagement and reaffirmed Zimbabwe’s commitment to sustained reforms, transparent engagement and inclusive growth.”
