The Board of Directors of the African Development Bank Group has approved a $4 million grant to support Zimbabwe's efforts to clear its debt arrears and re-engage with the international financial community.
The funding will finance the Zimbabwe Arrears Clearance Dialogue Enhancement Project (ZACDEP), aimed at strengthening dialogue and reforms needed to advance the country's arrears clearance process.
As of the end of 2025, Zimbabwe's public debt stood at approximately $21.5 billion, including $11.7 billion in external debt, of which about $7.7 billion is owed to multilateral and bilateral creditors. This burden of arrears has severely constrained the country's access to external financing and limited public investment.
The grant, provided under the African Development Fund's Transition Support Facility Pillar III, builds on the Support for Arrears Clearance and Governance Enhancement (SACAGE) project approved in 2022. SACAGE established the Structured Dialogue Platform and Sector Working Groups, bringing together the Government of Zimbabwe, creditors, development partners, civil society organisations and the private sector to sustain dialogue on reforms and debt resolution.
To be implemented by the government over a 36-month period (June 2026-May 2029), ZACDEP aims to strengthen dialogue and build consensus on the prerequisites for implementing an arrears-clearance roadmap.
The project comprises three components. First, Enhanced Dialogue, supporting engagement through the Structured Dialogue Platform and Sector Working Groups covering economic growth and stability, governance and land tenure reforms. It will also include advisory services, legal support, communication and diplomatic outreach. The second component, Strengthened Capacity, will support upgrades to debt management systems, reinforce parliamentary oversight, and strengthen anti-corruption measures. The third, Project Management, will cover coordination, procurement, financial management, and monitoring and evaluation.
The project incorporates a gender-responsive approach, recognising that prolonged debt distress has disproportionately affected women and young people.
The Board approval follows the International Monetary Fund Staff-Monitored Programme approved in April 2026, regarded as a key step towards broader debt resolution. It also reflects progress in macroeconomic stabilisation under reforms anchored in the second phase of Zimbabwe's National Development Strategy.
Commenting on the approval, Eyerusalem Fasika, African Development Bank Country Manager for Zimbabwe, said: "This approval reaffirms the African Development Bank's strong commitment to supporting Zimbabwe's economic resilience. Clearing arrears is the gateway to unlocking the development financing the country urgently needs."
The African Development Bank remains Zimbabwe's lead partner in the arrears clearance process and will continue to play a catalytic role in supporting the country's re-engagement with the international financial community.
