Zimbabwe is actively pursuing measures to settle the $23 billion it owes to multilateral lenders, as discussions with creditors remain ongoing, President Emmerson Mnangagwa confirmed.
Speaking to heads of diplomatic missions and international organisations, Mnangagwa highlighted that predictability and credibility are key to regaining investor trust and reopening access to credit lines, according to Bloomberg.
“Our engagement with international financial institutions through the Arrears Clearance and Debt Resolution Process is making steady progress,” he stated. “Concrete steps are being taken to meet our financial commitments,” he added, though he did not provide further specifics.
IMF program achieved
Zimbabwe recently secured a staff-monitored arrangement with the International Monetary Fund, marking an important step toward addressing the roughly $23 billion in arrears that have excluded the country from global capital markets for nearly 30 years.
The nation has been unable to access international financing since 1999 after defaulting on loans from the World Bank, Paris Club, and African Development Bank.
To facilitate negotiations with creditors, the government has engaged the African Development Bank and former Mozambican President Joaquim Chissano, signaling a firm commitment to resolving longstanding debts and restoring economic stability.
Debt-for-climate swaps have also emerged as a potential tool in Zimbabwe’s broader restructuring strategy. This approach allows for debt relief in exchange for climate and environmental initiatives, and it is being explored as part of the ongoing efforts to manage arrears.