The Government is encouraged by progress and milestones on reforms under the arrears clearance and debt resolution process, thus dialogue should continue to achieve the full objectives of the processes.
Implementation of the reforms is being spearheaded by sector working groups (SWGs) tasked with focusing discussions on the Government's implementation of reforms under the three key strategic pillars.
These include economic growth and stability reforms, governance and land tenure, compensation for former farm owners (FFOs) and resolution of bilateral investment protection and promotion agreements (BIPPAs).
The Government said in a statement during a meeting with SWG held on Monday, it was encouraged to maintain the ongoing dialogue and to accelerate efforts to achieve the set goals and targets outlined in the three matrices of the SWGs as this will ensure that the objectives of the debt resolution process are achieved.
The Government said as part of efforts to make the 99-year lease bankable and tradable, stakeholders recently embarked on a study visit to Tanzania to learn from the country's experience with the bankability and transferability of its land lease documents.
"Regarding the Compensation of Former Farm Owners (FFOs), so far, 444 farms have been cleared for payment.
"Government allocated US$35 million in the 2024 Budget for compensating FFOs, who are part of the Global Compensation Deed signed in 2020. The farmers will be paid for improvements made on the farms," chief director in the Office of the President and Cabinet (OPC), Mrs Anna Tinarwo said on behalf of the co-chair of Land Tenure Reforms SWG, deputy chief secretary in the OPC Mr Willard Manungo.
She noted that as for the resolution of BIPPAs, 92 farms have been approved for payment and the Government set aside US$20 million for compensation of BIPPA farmers in the 2024 Budget.
"The BIPPA farmers will be compensated for land and improvements on the farms and only farmers from countries that had signed and ratified BIPPAs by the time of the Land Reform Programme in 2000, are eligible for payment.
"These countries include Denmark, Switzerland, Germany, Netherlands and Yugoslavia," said Mrs Tinarwo.
At the meeting, private sector, represented by Mr Tinashe Masiiwa of the Bankers Association of Zimbabwe, said the country was moving in the right direction around the bankability and transferability of the 99-year lease and emphasised the importance of enacting policies that instil confidence in the private sector.
According to the statement, Zimbabwe's total public debt is estimated at US$21 billion, as at June 2024 with external debt at US$12,3 billion, while domestic debt amounts to US$8,7 billion.
"External debt is owed to bilateral and multilateral creditors, with the latter accounting for US$3,1 billion. Out of this multilateral debt, US$681 million is owed to the African Development Bank, US$1,5 billion to the World Bank, and US$427 million to the European Investment Bank," reads part of the statement.
Head of Zimbabwe Public Debt Management Office, Mr Andrew Bvumbe reiterated that the Government takes full ownership and is committed to the implementation of its reform agenda under the debt resolution process.
"The process is a crucial step in enabling the Government to address the long standing debt overhang challenge that remains a significant obstacle to the country's development efforts," he said.
He added that the Government recently appointed financial and legal advisors, Global Sovereign Advisory and Kelper-Karst Law firm, with support from the African Legal Support Facility to assist with the implementation of the Arrears Clearance and Debt Resolution process.
SDP members who attended the meeting include senior Government officials, Development Partners, representatives from the private sector, Civil Society Organisations (CSOs), and the Advisors to the High Level-Facilitator, His Excellency former President of Mozambique Joachim Chissano.
According to the statement, the OPC co-chairs the Land Tenure Reforms SWG with Switzerland, and the United Nations Development Programme and land tenure reforms are also part of the National Development Strategy 1 Thematic Working Group on Image Building, Engagement and Re-Engagement process for the country.
On economic growth and stability reforms, Co-Chair Mr Fidelis Ngorora, chief director in the Ministry of Finance, Economic Development and Investment Promotion reported progress including the transfer of the country's foreign currency-denominated liabilities from the Reserve Bank of Zimbabwe (RBZ) to the Treasury and the establishment of the willing seller willing buyer foreign exchange system.
Commenting on the ongoing technical discussions between the Government and the International Monetary Fund (IMF) that will inform a Staff Monitored Programme (SMP), Mr Ngorora said both parties were "reaching a common understanding on most critical issues to move forward to the next step.
"The IMF delegation is in the country for its third mission this year," he said. He also mentioned the introduction of the new structured currency, the Zimbabwe Gold, and social protection measures being implemented by the Government.
The economic growth and stability reforms SWG is co-chaired by the Ministry of Finance, Economic Development, and Investment Promotion, the World Bank and the International Monetary Fund.
On governance reforms SWG, co-chair Mrs Vimbai Nyemba, the permanent secretary in the Ministry of Justice, Legal and Parliamentary Affairs said various achievements had been made since April this year.
Among these, she said include the drafting of five bills; Anti-Corruption Bill, Public Interest Disclosure Bill, Protection of Whistleblowers Bill, Witness Protection Bill and Zimbabwe Anti-Corruption Act Amendment Bill.
These bills are going through the legislative drafting processes.
"The Ministry of Justice, Legal and Parliamentary Affairs engaged CSOs to address their concerns regarding the Private Voluntary Organisations (PVO) Bill, which was subsequently reviewed following these discussions. The bill is now before the Senate," she said.
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Representing civic society organisations (CSOs), Zimbabwe Institute Executive Director, Mr Isaac Maphosa appreciated the Government's engagement with CSOs on the PVO Bill, underscoring the CSOs eagerness for a genuine partnership.
The Government indicated that development partners, represented by European Union Ambassador Jobst Von Kirchman, Switzerland's Ambassador Stephanie Rey, the United Nations Development Programme (UNDP) resident representative, Dr Ayodele Odusola, and World Bank senior country economist, Victor Steenbergen, acknowledged the milestones achieved by the Government under the three pillars guiding the debt resolution process.
"They offered their support to Zimbabwe and stressed the importance of maintaining dialogue and strengthening the macroeconomic framework, particularly in implementing the SMP, accelerating the implementation of the agreed reforms and continuing collaborative efforts to ensure the success of the debt process," reads the statement.
In December 2022, the Government established a Structured Dialogue Platform with all creditors and Development Partners to institutionalise structured dialogue on economic and governance reforms to underpin the Arrears Clearance and Debt Resolution process.
The process is being championed by the Bank President Dr Akinwumi Adesina and supported by the High-Level Facilitator, former President of the Republic of Mozambique, His Excellency Joachim Chissano.
