“When it comes to strategies for paying off Zimbabwe’s external debt, we are certainly considering natural resources. There are certain structures that we will put in place,” Professor Ncube said. He confirmed that Harare has already begun servicing arrears through a platinum-backed arrangement.“We already have one structure involving platinum in place, which we have been utilising to service some of the external debt,” he said, adding that the government intends to expand such mechanisms to “fully leverage natural resources to deal with some of the debt.” Zimbabwe’s debt crisis has become one of the biggest obstacles to growth, investment, and social development.
With total public and publicly guaranteed debt at US$21.5bn as of December 2024, equivalent to 47.1% of GDP, the economy remains locked out of international capital markets. Of this, US$13.2bn is external debt, while US$8.3bn is domestic debt. More than 70% of external arrears stem from interest, deepening debt distress and leaving the country unable to access fresh concessional financing for over two decades.
The debt burden has translated into harsh economic consequences. Zimbabwe owes US$1.48bn to the World Bank, US$671m to the African Development Bank (AfDB), US$372m to the European Investment Bank, US$3.55bn to Paris Club creditors, and US$2.22bn to non-Paris Club lenders. Failure to clear these arrears has left the country cut off from the International Monetary Fund (IMF) and other multilaterals.
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Zimbabwe has repeatedly attempted to mend ties with international lenders, but efforts have faltered. The most high-profile attempt was the 2015 Lima Strategy, under which Harare pledged to clear arrears with the IMF, World Bank, and AfDB. In 2016, Zimbabwe paid overdue obligations to the IMF, but arrears to the World Bank and AfDB persisted, blocking access to new concessional loans.
More recently, the African Development Bank, under President Dr. Akinwumi Adesina, has championed a fresh arrears clearance plan, proposing a US$2.6bn bridge financing facility backed by guarantees from development partners. But the plan has stalled amid concerns over governance reforms and policy credibility.
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