Staff Reporter

Zimbabwe has confirmed its pledge to implement critical reforms as part of its arrears clearance and debt resolution process, reaffirming its determination to address its US$21 billion sovereign debt. 

The announcement follows a High-Level Structured Dialogue Forum held in Harare recently, where key stakeholders convened to discuss progress and the roadmap ahead.

The Structured Dialogue Platform, established in December 2022, has been instrumental in fostering trust and consensus among stakeholders, including international development partners, creditors, and civil society.

The forum was attended by AfDB President Dr. Akinwumi Adesina, the champion of the debt resolution process, and former Mozambique President Joaquim Chissano, the High-Level Facilitator.

Stakeholders commended Zimbabwe’s inclusive approach, noting that the Structured Dialogue Platform had re-engaged international partners effectively.

“They affirmed that this was the only viable path forward,” the Ministry of Finance stated in a communiqué. The ministry emphasised the government's full ownership of the process and its commitment to implementing reforms aligned with the National Development Strategy 1.

Cabinet, led by President Mnangagwa, emphasised that clearing arrears and resolving the debt crisis are pivotal for unlocking concessional financing to support Zimbabwe's development goals. 

Limited access to affordable long-term financing has constrained efforts to stabilise the domestic currency and finance priority programs.

During the forum, President Mnangagwa highlighted significant milestones achieved under the reform agenda, focusing on three pillars: economic growth and stability, governance, and land tenure. 

Despite challenges posed by debt, climate shocks, and sanctions, he expressed optimism about Zimbabwe's trajectory.

Government is negotiating a Staff Monitored Program (SMP) with the International Monetary Fund (IMF) to support further reforms and build confidence among creditors. 

Finance Minister Professor Mthuli Ncube outlined the next steps, including finalising the SMP with the IMF by early 2025.

 The agreement will anchor macroeconomic stability policies and ensure the continuation of outstanding reforms under the three-sector working groups. Structured Dialogue Platform meetings will also continue as a forum for feedback and progress tracking.

Zimbabwe’s arrears clearance strategy aligns with its vision of achieving economic stability and sustainable growth. 

The reforms are expected to unlock fresh financing, essential for development projects and improving the country’s international financial standing.

The debt resolution process marks a critical step in Zimbabwe’s re-engagement with the international community. 

As President Mnangagwa stated, the ultimate objective is to clear arrears, resolve debt, and secure new financing to meet the country’s development goals. 

Stakeholders remain optimistic about the process, recognising its potential to transform Zimbabwe’s economic prospects.