Zimbabwe sees $2.6bn bridge finance in place by early 2026

Zimbabwe expects the $2.6 billion bridge finance — needed to repay debt owed to international financial institutions and regain access to capital markets — to be in place by the first quarter of next year, Finance Minister Mthuli Ncube said.

Ncube shared details of the roadmap to revamp the southern African nation’s debt at an event in Abidjan, Ivory Coast’s commercial capital, on Monday, on the sidelines of the African Development Bank’s annual meetings.

The country is currently negotiating with some of the world’s richest nations, including the UK, Germany and Brazil to become bridge financiers. The nation wrote to 10 nations to request bridge funds, Ncube said, adding that official bilateral bridge loans are “government’s preferred strategy to clear the arrears.”

The southern African nation owes creditors $21 billion. The debt has precluded it from accessing global capital markets since it defaulted on payments in 1999.

It expects to finalise a staff-monitored program with the International Monetary Fund by the end of June, a key step to attract bridge financing sponsors. An IMF delegation is also scheduled to pay a visit to the country next month.

The European Investment Fund, which the country owes $390 million, made up of $150 million principal and the rest in interest, expects to be treated “as preferred creditor,” in the debt talks, said Roger Stuart, head of regional hub at EIB.

“That is the totality of the arrears will be paid” to EIB without any losses, he said. “We will be part of a process whereby all the international financial institutions will agree.”

Outgoing AfDB President Akinwumi Adesina urged the Abidjan-based lender to consider using part of its African Development Fund to help Zimbabwe clear some of its arrears.

“I am ending my time as AfDB president but will not and will never end my support for Zimbabwe,” he said. “Whoever is my successor will continue and takeover the work.”-nwzimbabwe