Zimbabwe treads bold path to clear US$21bn debt

Zimbabwe is accelerating efforts to resolve its US$21 billion debt, including US$12.3B in external arrears, through a multi-pronged strategy.

Finance Minister Professor Mthuli Ncube (pictured) says Government is leveraging bridge financing, natural resource-backed deals, and key International Monetary Fund (IMF)-backed reforms to unlock international credit lines.

A key step is the Staff Monitored Programme (SMP) with the IMF, which will pave the way for clearance of arrears to the World Bank and AfDB, followed by engagement with the Paris Club.

The country’s debt-to-GDP ratio has dropped to 45%, signalling improved fiscal health.

At the same time, Zimbabwe is negotiating a mutual tariff arrangement with the US, aiming for reciprocal trade terms and deeper access to US markets.

President Emmerson Dambudzo Mnangagwa has already removed tariffs on US goods as a goodwill gesture.

This bold plan reflects the Second Republic’s commitment to fiscal discipline, debt sustainability, and global re-engagement.

Zimbabwe Economic Watch