By 
By Ross Moyo
Zimbabwe is taking active steps to settle its $23 billion debt with multilateral institutions, as negotiations with creditors continue, President Emmerson Mnangagwa said. The country has been excluded from international borrowing since 1999 due to previous loan defaults.
The President emphasized that credibility and predictability are crucial to restoring investor confidence and unlocking new lines of credit. “My government’s ongoing engagement with international financial institutions, under the Arrears Clearance and Debt Resolution Process, is progressing well,” Mnangagwa said.
“We are taking concrete steps towards fulfilling our financial obligations,” he added, without providing further details. The government is working to resolve long-standing arrears and restore financial stability.
Last month, Zimbabwe secured a staff-monitored program from the International Monetary Fund (IMF), a critical milestone toward resolving its debt issues. This move is expected to pave the way for the country to access new credit and investment.
The government has enlisted the African Development Bank (AfDB) and former Mozambican President Joaquim Chissano to assist in negotiations with creditors. This move signals Zimbabwe’s commitment to resolving its debt issues and restoring financial stability.
Zimbabwe’s debt-for-climate swaps have also emerged as a potential option in the country’s broader debt-restructuring strategy. The mechanism allows countries to receive debt relief in exchange for commitments to climate and environmental projects.
The country’s debt issues have had significant economic implications, with Zimbabwe being barred from borrowing on international markets since 1999. However, the government is optimistic about resolving the issue and restoring financial stability.
The IMF deal is seen as a critical step towards resolving Zimbabwe’s debt issues and restoring investor confidence. The government is working to ensure that the benefits of debt relief are shared equitably among all stakeholders.
The country’s efforts to clear its debt are expected to have a positive impact on its economy, with potential benefits including increased investment and economic growth.
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