Sharm El Sheikh, Egypt – The head of the African Development Bank, President Dr. Akinwumi Adesina, called on development partners to stand in solidarity with Zimbabwe, the only African country currently facing economic sanctions from its creditors. Speaking at a roundtable on Zimbabwe’s debt arrears clearance during the African Development Bank Group’s 2023 Annual Meetings, Adesina emphasized the importance of dialogue and understanding in resolving differences and finding common ground.
The event, held on Wednesday, May 24, was attended by representatives from various organizations and governments, including the Southern Africa Development Community (SADC), the United Kingdom, the United States of America, the European Union, and the World Bank Group. Adesina highlighted the significance of inviting Zimbabwe to discuss its arrears clearance process, emphasizing that engagement, listening, and acting as honest brokers were crucial to building mutual understanding.
The Zimbabwean government established the Structured Dialogue Platform in December 2022 to facilitate dialogue on economic and governance reforms, which would lay the foundation for the arrears clearance and debt resolution process. President Dr. Emmerson Mnangagwa invited Adesina to champion the process, with former Mozambican President Joaquim Chissano serving as the high-level facilitator of the dialogues.
As the champion of Zimbabwe’s debt arrears clearance, Adesina commended President Mnangagwa and his government for their commitment to the process, acknowledging the country’s significant economic progress, despite soaring poverty levels, external debt burdens, and high unemployment rates. Adesina stressed that Zimbabwe’s performance directly impacted the economic growth prospects of the southern African sub-region and called for collective efforts to lift both Zimbabwe and the Southern African Development Community (SADC).
Highlighting the African Continental Free Trade Area as Africa’s biggest opportunity, Adesina emphasized the crucial role of a resurgent Zimbabwe in realizing this potential. President Mnangagwa expressed gratitude to the African Development Bank for the invitation and provided a comprehensive brief on economic, governance, and land reforms, underlining the government’s commitment to resolving its long-overdue debt arrears and reengaging with development partners and creditors. He highlighted the government’s focus on good governance, the rule of law, transparency, and accountability, and celebrated Zimbabwe’s achievements in attaining food sufficiency in wheat production.
Zimbabwe’s Finance and Economic Development Minister, Professor Mthuli Ncube, described the country’s debt burden as an albatross but noted that dialogue had brought Zimbabwe and its creditors closer together. Former President Joaquim Chissano acknowledged the formidable impediment posed by Zimbabwe’s staggering debt, which consists of 80% arrears, to the country’s social and economic development. He emphasized the country’s potential to become a regional powerhouse capable of exerting a positive influence on Southern Africa and emphasized the critical importance of reintegrating Zimbabwe into the international community.
President Adesina highlighted the African Development Bank’s commitment to accountability, inclusive dialogue, and partnerships, citing its past support for arrears clearance in Sudan and Somalia. He acknowledged that Zimbabwe’s case differed in context and history but expressed the Bank’s readiness to provide similar support if conditions were met, including the implementation of wide-ranging reforms and fiscal and democratic measures. Adesina recognized the potential hardships these reforms might impose on Zimbabwean citizens and called on development partners to support the country through this challenging process.
South African Finance Minister Enoch Godongwana and SADC and COMESA representatives voiced their support for Zimbabwe’s debt arrears clearance process, emphasizing the country’s importance to the region. Adesina urged stakeholders to leave the past behind and embrace a new, prosperous future for Zimbabwe, expressing his unwavering belief in the country’s potential.
Zimbabwe’s total consolidated debt currently stands at $17.5 billion, with $14.04 billion owed to international creditors and $3.4 billion as domestic debt. The country faces arrears in servicing its debt, including arrears to multilateral development banks such as the African Development Bank, the World Bank, and the European Investment Bank.
