Zim debt now about US$23 billion
European Union (EU) Ambassador to Zimbabwe Jobst von Kirchman says the country now owes US$18,7 billion in external debt, placing its total public debt to about US$23 billion.
As of September 2023, the Treasury reported public debt of nearly US$17,7 billion, comprising US$12,7 billion in arrears while US$5 billion was domestic debt.
Kirchman made the remarks yesterday in Victoria Falls at the 2024 International Renewable Energy Conference Expo sponsored by Alpha Media Holdings, publishers of NewsDay, Zimbabwe Independent and The Standard.
The event is being held with support from the Energy and Power Development ministry.
“The government has put in place a process to clear these arrears and I would really like to take this occasion to commend the government for that initiative because that is a crucial initiative,” the EU Ambassador said.
“Having these arrears prevent the government from taking some of these (EU) loans and that means what I just told you (available EU loans), is not applicable to the Zimbabwean government right now. We wish that were the case and hope the initiative the government has put in place of clearing these arrears will succeed.”
After delivering his speech, the paper sought clarification on whether the US$18,7 billion was total debt or external to which the EU Ambassador said:
“Arrears are international debt. Very little has anything to do with domestic (debt).”
The huge debt bill comes at a time when the Treasury is yet to publish the total public debt as of the end of 2023.
However, the domestic debt could have risen owing to the rapid depreciation of the local currency.
Zimbabwe needs foreign lending to fund a critical energy deficit of between 500 megawatts (MW) to 1 000MW.
In the meantime, the government is reviewing the 2012 National Energy Policy in conjunction with the World Bank to update it to current energy trends, challenges and technological advancements.
The policy was promulgated to promote the optimal supply and utilisation of energy, for socio-economic development in a safe, sustainable, and environmentally friendly manner.
“We have the energy policy of 2012 and at this conference we are taking this podium to announce that this policy is now officially under review. We will be calling you for various stakeholder workshops, so that we review our policy. We have had it for more than 12 years,” Energy and Power Development ministry permanent secretary Gloria Magombo, said.
We have seen new technologies also coming in so we are reviewing that policy and we are going to receive assistance from various partners while as a ministry we have put it in our budget.
“We have also had a mission to the World Bank which has also promised to assist us so that we do review this energy policy which also has an impact on the renewable energy policy itself and also biofuels policy.”-newsday
