‘Zimbabwe’s arrears, debt resolution process on course’

ZIMBABWE’s arrears clearance and debt resolution process is proceeding well, with a meeting between the Government, creditors and development partners set for Harare today.

This was said by former Mozambique President Joachim Chissano and African Development Bank president, Dr Akinwumi Adesina, in separate interviews after meeting President Mnangagwa at State House last night.

Zimbabwe’s debt clearance process is being championed by Dr Adesina while former President Chissano is the High-Level facilitator.

THE African Development Bank

The country’s consolidated debt is US$17,5 billion, with debt owed to international creditors standing at US$14,04 billion, while domestic debt amounts to US$3,4 billion.

Debt owed to bilateral creditors is estimated at US$5,75 billion, while debt to multilateral creditors is estimated at US$2,5 billion.

Chissano arrives

The debt continues to weigh heavily on Zimbabwe’s development efforts, and former President Chissano said they expect positive outcomes from today’s meeting.

“We were preparing for tomorrow’s meeting, to exchange views and get the views of the President about the process and we all agreed that the process so far is going on well and there is a lot of discussion with partners and in many cases, you find very positive approaches from them and so we are glad and tomorrow (today) we foresee that we are going to have a good meeting,” said President Chissano.

AfDB president, Dr Akinwumi Adesina

Dr Adesina echoed similar sentiments and praised President Mnangagwa’s commitment to the debt resolution process.

“We met with President Mnangagwa to brief him about the progress that has been made and we are excited about President Mnangagwa’s leadership of the process and his great commitment to it and the whole of Government approach towards this and the great support of development partners towards this.

“It’s a joint effort and we think we are moving in the right direction and the right spirit, and we think that this high-level debt forum tomorrow (today) will further cement the right direction we are in.

“We anticipate that things should go well for Zimbabwe. We have lots of work to do but we are determined and committed and the President is highly committed; I am sure we will succeed,” said Dr Adesina.

Zimbabwe’s debt overhang has prevented it from accessing long-term lines of credit from international financial institutions to fund developmental programmes.

Money – Image taken from Pixabay

Previously, the meeting brought together three sector working groups: two that had earlier been established — one on macroeconomic growth and stability reforms, and another on governance reforms, — as well as a third new sector working group on land tenure reforms, compensation of former farm owners and the resolution of Bilateral Investment Promotion and Protection Agreements (BIPPAs).

During the previous meeting, Permanent Secretary for Finance and Economic Development, Mr George Guvamatanga, reaffirmed the Government’s commitment to the arrears clearance and debt resolution process.chronicle.cl.zw