Zimbabwe Hosts Fourth Platform for Structured Dialogue on Arrears and Debt Resolution | African Development Bank

Zimbabwe has completed a fourth meeting of the Platform for Structured Dialogue on Debt Remediation with creditors and development partners.

Government and development partners met on Thursday 11 May to discuss three draft policy reform matrices prepared by sectoral working groups on economic, governance and land tenure reform. They also looked at the compensation of former farm owners and the resolution of Bilateral Investment Promotion and Protection Agreements (BIPPAs).

In words of welcome, Finance and Economic Development Minister Mthuli Ncube assured participants of “full commitment and country responsibility to the process”, including the implementation of policy reforms.

Zimbabwean Finance Minister Mthuli Ncube at the fourth meeting of the Structured Dialogue Platform on Thursday, May 11, 2023 in Harare

In December 2022, the Zimbabwean government established a structured dialogue platform with all creditors and development partners, to institutionalize a structured dialogue on economic and governance reforms to support the arrears elimination and debt resolution process.

Alexis Ferrand, the government’s economic adviser on clearing arrears, outlined the long-term and short- to medium-term strategies of the Economics Reforms Matrix, which will enable sustainable inclusive economic growth, increased investment opportunities and job creation.

The Matrix is ​​focused on improving public sector service delivery, transparency and accountability, fighting corruption and advancing human rights. It also covers electoral reform, national unity, peace and reconciliation. It was presented by Virginia Mabiza, Permanent Secretary at the Department of Justice, Legal and Parliamentary Affairs.

Ncube encouraged stakeholders to continue “constructive and candid dialogue, which is critical to building mutual trust and confidence, necessary for the success of the delinquent and debt resolution process.”

Zimbabwe’s debt restructuring process is supported by Dr. Akinumwi Adesina, the president of the African Development Bank, and former Mozambican president Joaquim Chissano, who has been designated as a high-level facilitator. Both are expected in the country for a High-Level Debt Resolution Forum on May 15, 2023, led by Zimbabwean President Emmerson Mnangagwa.

President Mnangagwa named Adesina champion in July 2022. The forum will focus on updates on the progress of the three policy reform matrices, presentation of the way forward and a preliminary roadmap.

Zimbabwe’s total consolidated debt is US$17.5 billion. Debt to international creditors is $14.04 billion, while domestic debt is $3.4 billion. Debt to bilateral creditors is estimated at $5.75 billion, while debt to multilateral creditors is estimated at $2.5 billion. The country is in arrears on paying off its debt, with payments in arrears to multilateral development banks including the African Development Bank, the World Bank and the European Investment Bank.

The fourth meetings of the structured dialogue platform follow the previous meetings in December 2022 and in February and March 2023. The dialogue meetings are expected to continue after the elections in August this year.