The determination of the Zimbabwean government to pay off its outstanding debt obligations to international and bilateral creditors was reiterated by President Emmerson Mnangagwa on Thursday (23 February 2023)
Mnangagwa claimed that Zimbabwe’s debt burden continues to severely hamper its development efforts during a meeting with creditors’ representatives in Harare, the country’s capital.
“We have no access to new lines of credit, including from the multilateral banks, such as the World Bank Group,” Mnangagwa said.
Zimbabwe, which has experienced persistently high inflation for the past 15 years, owes 14.04 billion dollars to foreign creditors.
5.75 billion dollars are thought to be owed to bilateral creditors, whereas 2.5 billion dollars are thought to be owed to multilateral creditors.
The country owes multilateral development banks, such as the African Development Bank, the World Bank, and the European Investment Bank, money that has not been paid in full.
“My government continues to demonstrate its commitment through quarterly token payments to various creditors, according to an agreed payment schedule,” he said.
Mnangagwa stated that the purpose of the dialogue meeting, which is the second to be convened since December of last year, is to create a forum for structured and productive discussion regarding the nation’s debt relief and arrears clearance.
The summit was co-chaired by former Mozambique President Joaquim Chissano and AfDB President Akinwumi Adesina.
Mnangagwa selected Adesina and Chissano as the nation’s champion and high-level facilitator of the arrears clearance and debt resolution processes, respectively, last year.
Mnangagwa stated that the overarching goal of Zimbabwe is to arrive at a stage when the issues guiding the process of clearing arrears and resolving debt are agreed upon through consensus and take into consideration Zimbabwe’s particular realities.
At the first conference in December, it was decided that Zimbabwe should conduct economic and governmental reforms as a means of clearing its arrears and resolving its debt.
During the conference in December, it was also decided to compensate former commercial farmers for improvements made to their farms and to resolve issues of farms damaged by land reform that were covered by bilateral investment promotion and protection agreements.
“With regards to economic reforms, we recognize that exchange rate stability is a key area that requires continued attention. So far, multi-pronged routes are being pursued to ensure greater certainty around this matter,” Mnangagwa said.
He informed the group that, in accordance with the Global Compensation Deed, the Zimbabwean government had reached an agreement with former commercial farmers on a compensation package for improvements made to the land.
“We remain committed to the resource mobilization efforts to enable payment of this obligation,” he said, adding that Zimbabwe is keen to see Zimbabwe in good standing with all its creditors.
Ref: Xinhua.
