Harare, Zimbabwe – The International Monetary Fund (IMF) has reaffirmed its commitment to working with Zimbabwe to achieve economic stability and rejoin the international financial community.
IMF Managing Director Kristalina Georgieva made the pledge during a roundtable discussion with Zimbabwean officials and donor partners. She highlighted the importance of economic reforms and re-engagement with the international community to unlock new external funding for the country.
“The IMF stands ready to collaborate with the Zimbabwean authorities to restore macroeconomic stability and re-engage with the international community,” Georgieva said. “These steps are essential for Zimbabwe to access external financing for its development needs.”
Zimbabwe’s Finance Minister, Professor Mthuli Ncube, addressed the roundtable, outlining the country’s economic situation and its efforts to tackle debt. Zimbabwe is currently classified as “debt distressed” due to over $6.7 billion in unpaid external debt. This has limited the country’s access to international financial resources needed to fund its economic recovery plan.
Productive discussion at the 🇿🇼Zimbabwe Roundtable with Donor Partners. The IMF stands ready to work with the Zimbabwean authorities to restore macroeconomic stability and reengage with the international community, which are essential for accessing external financing. pic.twitter.com/4ZVYCBNXGl
— Kristalina Georgieva (@KGeorgieva) April 15, 2024To address this challenge, the Zimbabwean government established a Structured Dialogue Platform in December 2022. This platform brings together creditors and development partners to discuss economic and governance reforms, with the aim of finding a sustainable solution to the debt issue.
“There has been significant progress with the Structured Dialogue Platform,” said Professor Ncube. “A transparent and inclusive consultative process has fostered growing consensus and confidence in the debt resolution process.”
As a sign of its commitment to this process, the Zimbabwean government has made token payments to international financial institutions, including the World Bank, the African Development Bank (AfDB), and the European Investment Bank. Additionally, they have made payments to each of their 16 Paris Club bilateral creditors.
Professor Ncube also highlighted Zimbabwe’s recent economic achievements, including the implementation of an IMF Staff Monitored Program and the establishment of a competitive foreign exchange rate regime. Negotiations are currently underway for a broader Staff Monitored Program, which is seen as crucial for establishing a track record of successful policy implementation and paving the way for debt resolution and potential future financial arrangements with the IMF.
The Hon. Minister is leading a delegation to the IMF/World Bank Spring Meetings which are running from 15 to 21 April 2024. pic.twitter.com/JBzphpDBkI
— MOFED&IP (@ZimTreasury) April 16, 2024While acknowledging these positive developments, Professor Ncube also addressed the looming threat of a severe drought caused by El Niño. This drought is expected to have a significant impact on Zimbabwe’s agriculture and energy sectors, potentially jeopardizing the country’s economic progress. The government has declared the drought a national disaster and is seeking international support to mitigate its effects.