Zimbabwe is at a pivotal moment in its economic journey, with its leaders working diligently to clear the country's staggering US$21 billion public debt.
This debt, which includes US$12,3 billion in external obligations, poses significant challenges to economic growth and development.
However, the country's commitment to resolving its debt burden represents an opportunity for a brighter and more stable economic future.
The African Development Bank (AfDB), led by its president Dr Akinwumi Adesina, is playing a key role in Zimbabwe's debt resolution process.
Speaking at the 6th High-level Structured Dialogue platform forum in Harare, Dr Adesina reaffirmed the AfDB's support for Zimbabwe's arrears clearance efforts.
The bank will also arrange financial assistance to help the country meet its obligations.
"Now we have a clear path ahead of us that will start next year," he said, emphasising the importance of the collaboration between Zimbabwe and the International Monetary Fund (IMF) on a staff-monitored programme.
The economic benefits of clearing Zimbabwe's debt are immense, with local experts underscoring the transformative potential of debt resolution.
Economist Mr Tinevimbo Shava believes clearing arrears is critical to unlocking economic growth.
"When a country resolves its debt issues, it immediately boosts its creditworthiness. This improves access to international capital markets, which is essential for funding infrastructure and development projects," he said.
Zimbabwe's debt situation has long been a barrier to accessing affordable international financing.
Multilateral creditors such as the World Bank, African Development Bank, and European Investment Bank have been unable to extend new loans to Zimbabwe due to arrears totalling over US$3,1 billion.
Clearing these debts will not only enable Zimbabwe to re-establish financial relationships with these institutions, but also attract foreign investment.
Ms Gladys Shumbambiri-Mutsopotsi, an economist focusing on development issues, highlighted the importance of debt clearance in rebuilding trust with the international community.
"Clearing debt is not just about numbers; it is about restoring confidence in Zimbabwe as a reliable partner in the global financial system. This trust will encourage investors and donors to re-engage with the country, ultimately driving economic recovery."
Zimbabwe's domestic debt, which stands at US$8,7 billion, has contributed to economic challenges, including inflationary pressures.
Reducing this debt burden will free up resources for the Government to invest in critical areas such as healthcare, education, and infrastructure.
Economic analyst Mr Namatai Maeresera noted that reducing debt servicing costs will allow Zimbabwe to redirect funds towards improving the livelihoods of its citizens.
"When Government spends less on servicing debt, it has more resources to focus on development priorities," Mr Maeresera said.
"This not only improves public services, but also creates jobs and stimulates economic activity, laying the foundation for sustained growth."
Another critical benefit of clearing debt is the increased economic sovereignty it affords.
Economist Dr Prosper Chitambara explained that reliance on external debt often comes with conditions that limit a country's policy autonomy.
"By reducing its debt, Zimbabwe can strengthen its ability to chart its own economic path without undue influence from external creditors," he said.
Dr Chitambara also emphasised the broader implications of debt resolution for long-term development.
"Clearing debt is a signal of stability and responsibility. It opens the door for Zimbabwe to participate fully in regional and global economic initiatives, enhancing its standing on the world stage."
Debt clearance is not an end in itself, but rather a foundation for sustainable growth.
Experts agree that Zimbabwe must pair its debt resolution efforts with sound economic policies to ensure long-term benefits.
Dr Adesina has championed this approach, advocating for collaboration with the IMF on a staff-monitored programme to promote fiscal discipline and economic reforms.
This programme will be critical in addressing structural issues such as revenue mobilisation, expenditure management, and the development of a stable monetary framework.
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With these measures in place, Zimbabwe will be well-positioned to capitalise on the opportunities that debt clearance brings.
Zimbabwe's path to debt resolution is challenging, but the potential rewards far outweigh the difficulties.
Clearing arrears will unlock international financing, attract investment, strengthen the domestic economy, and enhance the country's economic sovereignty.
It is a chance for Zimbabwe to reset its economic trajectory and lay the groundwork for a prosperous future.
As former Mozambican president Joachim Chissano, a high-level facilitator in Zimbabwe's debt resolution process, aptly noted, this is a moment of opportunity for Zimbabwe to reclaim its place as a vibrant, competitive economy in Africa and beyond.
With the support of the AfDB, IMF, and other international partners, Zimbabwe's commitment to clearing its debt is a testament to the resilience and determination of its people and leaders.
The future, while demanding, holds promise for a more stable, thriving Zimbabwe.
