Online Reporter
The High Level Structured Dialogue Platform on the Arrears Clearance and Debt Resolution commenced in Harare this morning.
This is the sixth gathering under this arrears clearance and debt resolution platform since its inception in 2022.
Our online crew is on the ground and we will give you updates on the deliberations.
AfDB president Akinwumi Adesina calls for dialogue
Speaking at the high-level dialogue, president of the African Development Bank, Dr Akinwumi Adesina said dialogue calls for all parties involved to listen to each other.
โThe dialogue platform is the only way so we should all make it work. We have to put the past behind us for a better future,โ he said, adding that AfDB will avail additional support to Zimbabwe.
โZimbabwe is a beautiful nation with wonderful people. It is time to make Zimbabwe beautiful again. We must all play our part so that Zimbabwe can build infrastructure that will integrate the SADC region.
โThe AfDB will continue to strongly support Zimbabwe. The bank provided US$55 million in lines of credit to the private sector. The bank is currently working on a US$100 million facility for Old Mutual and CABS.
โOver 30 000 farmers have been supported by the AfDB and the target is to reach 200 000 hectares,โ he said.
Dr Adesina acknowledged the new Ambassadors from the UK, France, Canada, and the US following the commencement of their respective mission to Zimbabwe.
He said the new ambassadors have joined the debt resolution dialogue.
He went on to thank President Mnangagwa for Zimbabweโs commitment.
โWe now need to collectively agree on a time plan to deliver the arrears clearance and debt resolution,โ said Dr Adesina.
What is the dialogue all about?
The Government of Zimbabwe is hosting a high-level meeting in Harare to assess the progress of the dialogue process between the country and development partners over its $21 billion debt and arrears.
The meeting will be addressed by the President of Zimbabwe, Dr Emmerson Mnangagwa, who will deliver a keynote speech, and the President and Chairman of the Boards of Directors of the African
Development Bank Group, Dr Akinwumi Adesina, who is the champion of Zimbabweโs Arrears Clearance and Debt Resolution process.
The High-Level Facilitator of the dialogue, former President of the Republic of Mozambique, Joaquim Chissano, will be represented by his adviser, Ambassador Nuno Tomas.
The meeting is being attended by development partners, including the World Bank, the International
Monetary Fund, the European Union, the United Nations Development Programme, the diplomatic community, representatives from the private sector, farmersโ organizations, civil society groups, and the media. – www.afdb.org
Former President Chissano applauds Zimbabweโs efforts
The High-Level Facilitator of the dialogue, former President of the Republic of Mozambique, Cde Joaquim Chissano addressed the meeting virtually as he could not travel to Zimbabwe.
He said the main thrust of dialogue has been achieved over the last 3 years.
โThe dialogue has been open and on goodwill,โ said Cde Chissano.
He said increased accountability is important in such engagements.
โThe debt clearance progress is remarkable, but some challenges remain. While the Government of
Zimbabwe is committed to implementing the debt clearance strategy, creditors should support the process.โ
Zimbabwe will maintain fiscal discipline: President Mnangagwa
President Mnangagwa has said the Government of Zimbabwe is committed to maintaining fiscal discipline as it implements its debt clearance strategy, adding that the successful implementation of the plan is key to Zimbabweโs prosperity.
The President said this as he was delivering his keynote address at the High-Level Structured Dialogue
Platform on the Arrears Clearance and Debt Resolution in Harare this morning.
He said since the establishment of the platform, tremendous progress has been registered in clearing the nationโs debt.
โGovernment remains committed to maintaining fiscal discipline. Tight monetary policies will remain in place. Coordination between fiscal and monetary policy will ensure stability.
โZimbabweโs economy has shown resilience. Last year we registered growth and this year it is projected that the economy will grow by 2 percent on account of the drought which affected production,โ said President Mnangagwa.
โNext year the economy is expected to rebound and grow by 6 percent due to the recovery of the agricultural and mining sectors.โ
โWith regards to land tenure, the Government made a bold decision to give security of tenure to all beneficiaries of the land reform programme.
โTransformative infrastructure projects across the country are changing the quality of life for Zimbabweans and funding is mainly through domestic resources,โ he said.
President Mnangagwa thanked AfDB and the high-level facilitator, former President for Mozambique,
Cde Joaquim Chissano, for continuing to facilitate the process.
He said as Zimbabwe transitions to the implementation of National Development Strategy 2, access to external long-term funding of projects will be key.
Zimbabweโs 20-year-old debt
Zimbabweโs burden of debt and arrears have accumulated for more than 20 years and the country is now in the processing of clearing the debt.
As of August 2024, Zimbabweโs total public debt was estimated at about $21 billion, representing a debt-to-GDP ratio of 97%, leaving the country with limited financial capacity for its development needs.
Of the $21 billion, external debt owed to bilateral and multilateral creditors accounts for $12.3 billion.
The countryโs biggest multilateral creditors are:
๏ World Bank which is owed $1.5 billion,
๏ African Development Bank Group $760 million,
๏ European Investment Bank $427 million.
๏ Domestic debt amounts to US$8.7 billion.
After more than two decades of suffering the debilitating effects of debt and mounting arrears,
Zimbabweโs President Mnangagwa in 2022 requested Dr Adesina to champion the arrears clearance and debt resolution, and former President of Mozambique Joachim Chissano to facilitate the political and economic governance reforms process with the creditor countries. – www.afdb.org
