Zimbabwe’s Debt Talks See Progress, Call for Continued Support.

Thursday 24th April 2025

By inAfrika Reporter

Zimbabwe’s structured dialogue on arrears clearance and debt resolution has seen significant milestones over the past two years, according to global stakeholders meeting during the IMF and World Bank Spring Meetings in Washington, D.C.

The country has made notable progress in economic stability and land reforms, including compensation to former farm owners and the Farm Title Deed programme initiated in December 2024. The programme supports a 99-year bankable lease for landholders, enhancing tenure security and investor confidence.

Joachim Chissano, former President of Mozambique and dialogue facilitator, praised the achievements, noting that many core issues have been resolved. African Development Bank President Akinwumi Adesina echoed this sentiment but expressed concern over Zimbabwe’s recent enactment of the Private Voluntary Organization bill, calling it a setback.

Adesina outlined steps to advance the process, including IMF approval of a Staff Monitored Programme, support for bridge financing, and engagement from the African Development Fund and World Bank to clear arrears. The African Development Bank is also funding advisory services to guide the process through legal and strategic complexities.

On economic reforms, Zimbabwe has implemented key changes: transferring Reserve Bank liabilities to the treasury, adopting a more flexible exchange rate, and pursuing fiscal discipline. The newly introduced ZiG currency has contributed to macroeconomic stability.

The government is working to secure $2.6 billion in bridge financing to settle outstanding debt to international institutions. Minister of Finance Mthuli Ncube projected 6% economic growth in 2025, a strong rebound from 2% the previous year.

In governance, Zimbabwe has abolished the death penalty and is undertaking judicial and anti-corruption reforms. Yet, challenges remain around civil liberties and political freedoms. Stakeholders emphasized the need to deepen dialogue to ensure political reforms are sustained.

Andrew J. Pascoe, former president of the Commercial Farmers Union, confirmed that former landowners have begun receiving USD cash payments, calling the development “momentous.” He thanked the government for fulfilling its 2018 promise to compensate former farm owners, a move seen as crucial to restoring trust and unlocking international support.

SADC Executive Secretary Elias M. Magosi urged the international community to back Zimbabwe’s recovery, citing the country’s strategic importance to regional integration and trade.

With political commitment and international cooperation, Zimbabwe’s goal of full arrears clearance and renewed access to concessional financing appears within reach.