Zimbabwe has received reassurance of support from the African Development Bank (AfDB) Group and multilateral financial institutions to help clear its debt arrears.
AfDB Group on its website on Thursday said the reassurance was given during a meeting with Dr Akinwumi Adesina, President of the Bank, government of Zimbabwe and other partners in Harare.
AfDB said that Adesina, representatives of multilateral finance institutions, the Zimbabwean government, and other partners had agreed to work together to develop an action plan that would resolve the country’s debt.
The Bank said that Zimbabwe owed about $13.5 billion to multilateral financial institutions, bilateral partners, and other creditors.
Speaking, Adesina said that he accepted the role of Zimbabwe’s debt resolution champion because it was his responsibility as the president of Africa’s premier financial institution.
According to him, it is about the people of Zimbabwe.
”They have suffered long enough, for two decades now.
”I believe that it is time to reinvigorate and re-dynamise the country’s economy because it is critical for the Southern African community.
”Despite economic challenges, Zimbabwe remains a strong and reliable shareholder of the AfDB.
”It has continued to make quarterly token payments of $500, 000 to service debts to the AfDB Group, the World Bank, and other creditors.
“Zimbabwe is one of the 54 African member countries of the AfDB, when one part hurts, the whole body hurts.
”Zimbabwe’s debt arrears clearance and resolution will create a new growth trajectory for the country, making it a more vibrant economy.
“It is going to be challenging, but it is not impossible.
”Failure is not an option, the arrears clearance strategy must succeed,” Adesina said.
He said the Bank was also keen to see the country play an important role within the Africa Continental Free Trade Area (AfCFTA) through manufacturing, agriculture, human capital, ICT, and other sectors.
Also, speaking with ambassadors and representatives of several G7 countries, the World Bank and International Monetary Fund (IMF), Adesina said the debt clearance could be achieved by working together.
“It is going to take all of us, locked hand in hand, working together to chart this course”.
Zimbabwean President, Emmerson Mnangagwa, thanked Adesina for accepting to be the champion for the arrears clearance and debt resolution process.
Mnangagwa also commended the AfDB for standing by Zimbabwe through difficult circumstances.
“During the COVID-19 pandemic, Zimbabwe received no external help except from the AfDB.
”We had to re-prioritise our budget and ultimately we managed the situation against all odds,” Mnangagwa said.
The Bank said that the debt clearance process to be led by it would emphasise the importance of implementing prior land compensation commitments and additional political and economic reforms.
