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Wallace Ruzvidzo, Harare Bureau

ZIMBABWE is committed to servicing its debt overhang as that will unlock new concessional external financing, critical for the attainment of the country’s economic development objectives, President Mnangagwa has said.

In his address to the 6th High-Level Structured Dialogue Platform Forum: Arrears Clearance and Debt Resolution Process in Harare yesterday, President Mnangagwa emphasised the Second Republic’s determination to see through the success of the arrears clearance and the debt resolution process.

The High-Level Structured Dialogue Platform was established in 2022, and the country has registered progress, coupled with growing consensus, trust and confidence in the initiative.

“The successful implementation of our Arrears Clearance and Debt Resolution Strategy is key for Zimbabwe to unlock new concessional external financing, critical for achieving our economic development objectives.

“I call for the continued support of the International Financial Institutions, Development Partners, our creditors and the international community for the Arrears Clearance and Debt Resolution Process.

“As Zimbabwe transitions to the implementation of the National Development Strategy 2, access to external concessional financing will be key for long-term funding of our projects and programmes. I am looking forward to achieving the set objective of this Structured Dialogue,” he said.

In a show of commitment, President Mnangagwa said Zimbabwe was in the process of negotiating a Staff Monitored Programme (SMP) with the International Monetary Fund (IMF), which is expected to kick off in January.

He said relevant programmes would be put in place to cushion the general citizenry from any eventualities arising from the implementation of the SMP.

“To anchor implementation of further economic reforms under the Arrears Clearance and Debt Resolution Process, Government is currently negotiating a Staff Monitored Programme (SMP), with the International Monetary Fund,” President Mnangagwa said.

“The implementation of any reforms under the SMP, however, impacts negatively on the vulnerable groups of our population.
“In this regard, the protection of the vulnerable groups, through effective social protection programmes, is of critical importance to my Government.”

Zimbabwe, he said, was realising key milestones despite challenges associated with the debt overhang, global climate shocks and the albatross of illegal United States sanctions.

“The Zimbabwean economy has shown resilience, registering a 5,3 percent growth in 2023. This is projected to grow by two percent in 2024, mainly on account of the El-Nino induced drought, which affected agricultural production.
“In 2025, the economy is projected to rebound and grow by six percent due to the recovery of the agriculture and mining sectors,” said the President.

Among other interventions, President Mnangagwa said Government remained committed to maintaining fiscal discipline.
“Similarly, a tight monetary policy to support the effective management of money supply growth will remain in place.

“Co-ordination between fiscal and monetary policies will ensure stability of the exchange rate and low single digit inflation.
“To bolster macro-economic stability, my Government, in April 2024, introduced a new local currency, the Zimbabwe Gold (ZWG).

“In addition, all Reserve Bank of Zimbabwe foreign currency liabilities were transferred to Treasury and these are now being financed through the national budget. In terms of the exchange rate, there is now greater flexibility on the foreign exchange market,” said President Mnangagwa.

Reserve Bank of Zimbabwe (RBZ)

With regards to land tenure reforms, the President updated the gathering on Government’s decision to give security of tenure to all beneficiaries of the Land Reform Programme.

“This is in line with Section 292 of our Constitution. All land held by the beneficiaries of the Land Reform Programme under the 99-year leases, offer letters and permits, will now be held under bankable, register-able and transferable tenure documents.

“In line With the Global Compensation Deed, signed in 2020, my Government made an allocation of US$35 million in the 2024 National Budget.

“I am pleased to highlight that a total of 444 applications for compensation under the Global Compensation Deed, were approved, to date, for payment by the Compensation Committee.

“An amount of US$20 million was allocated in the 2024 National Budget for compensation of farms protected by Bilateral Investment Protection and Promotion Agreements. So far, 94 applications have been approved for payment,” he said.

President Mnangagwa said the Government and people of Zimbabwe deem it, in their fundamental interest and part of their national character, to consolidate Constitutionalism, the rule of law, good governance and the protection of constitutionally enshrined rights and freedoms.

“Governance reforms are, therefore, guaranteed under the Second Republic. A countrywide decentralisatlon of our justice delivery system is ongoing.”

President Mnangagwa also apprised the meeting of developments in the country since the last High-Level meeting held in June last year.

“Since our last High-Level Structured Dialogue Platform Meeting in June 2023, and following the successful National Harmonised General Elections in August 2023, the reforms and modernisation of various aspects of our public sector have been scaled up.

“Meanwhile, transformative infrastructure development projects across the country are changing the quality of life of our people. The funding of these is mainly through domestic resources, and non-concessional external financing.

“These should ordinarily be funded through long term concessional financing, including Public-Private Partnerships (PPPs),” he said.

The President outlined various legislation on the cards, which will increase transparency and accountability across the board.
“Meanwhile, the fight against corruption is being strengthened with the anticipated enactment of the Whistleblower Protection Bill; Witness Protection Bill; Anti-Corruption Amendment Bill; as well as the Assets and Conflict of Interest Bill.

“Further, the Private Voluntary Organisations (PVOs) Bill is expected to enhance transparency and accountability within that sector, while also augmenting our fight to prevent the financing of terrorism and money laundering, through PVOs.

“In order to improve the human rights environment in the country, the Abolition of the Death Penalty Bill is undergoing Parliamentary approval processes. The Zimbabwe Human Rights Commission has been decentralised”.
He said the establishment of the Zimbabwe Independent Complaints Commission in line with Section 210 of the Constitution, will enhance a culture of transparency and accountability in the country.

The event was attended by African Development Bank (AfDB) president Dr Akinwumi Adesina, who is the champion of the country’s arrears clearance platform, Diplomats, Ministers and senior Government officials.

Former Mozambican President Joaquim Chissano, who is the high-level facilitator, attended virtually.
Zimbabwe has a debt overhang of US$21 billion. Of this, US$13 billion is external debt and US$8 billion is domestic debt.