Zimbabwe Seeks to Strategically Manage External Debt Repayment

Zimbabwe, having been excluded from global capital markets since its default in 1999, is hopeful that its strengthening economy will allow it to repay external creditors, though a timeline for this process has yet to be provided.

Read: The AfDB reports that Zimbabwe is seeking $2.6 billion in bridge financing to aid in debt restructuring.

Finance Minister Mthuli Ncube announced to the press in Harare on Tuesday that the country’s debt-to-GDP ratio has improved to 46% from around 60%, thanks to enhanced economic growth.

“With this expanded GDP base, we have increased opportunities and capabilities to begin tackling our external debt,” he remarked, without providing a specific timeline.

“The economy has reached a point where it can support the sustainable servicing of our debts.”

Zimbabwe is focused on restructuring its $21 billion debt, with approximately $12.3 billion owed to external creditors like the World Bank, African Development Bank, and the European Investment Bank.

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