Zimbabwe Embarks on Historic Debt Resolution Journey with AfDB Group Support

Finance Minister Prof. Mthuli Ncube emphasized that initiating payments is vital for rebuilding trust, attracting investment, and achieving debt sustainability.

Zimbabwe has reached a critical milestone in its path to economic recovery, initiating long-awaited compensation payments to affected investors. This landmark step, facilitated by the African Development Bank Group (AfDB), marks significant progress in Zimbabwe’s mission to clear its $21 billion debt and reestablish trust with international creditors.

A Major Step Toward Debt Resolution

Under the leadership of President Emmerson Mnangagwa and with the instrumental guidance of AfDB President Dr. Akinwumi Adesina, Zimbabwe has engaged in six High-Level Structured Dialogues since 2022. These dialogues have paved the way for the commencement of arrears clearance payments, a crucial part of Zimbabwe’s broader reform agenda. President Mnangagwa praised Dr. Adesina’s commitment, stating, “Dr. Adesina undertook this assignment with impeccable zeal and commitment, reigniting hope and confidence in Africa’s potential.”

Rebuilding Investor Confidence and Trust

Finance Minister Prof. Mthuli Ncube emphasized that initiating payments is vital for rebuilding trust, attracting investment, and achieving debt sustainability. He affirmed that this process aligns with Zimbabwe’s constitutional commitments and long-term economic goals.

AfDB's Strong Commitment to Zimbabwe’s Economic Reforms

The African Development Bank Group has played a pivotal role beyond debt resolution. Under Dr. Adesina’s leadership, AfDB has committed concessional financing through its African Development Fund to assist Zimbabwe in clearing arrears, drawing from successful models used in Sudan and Somalia.

Driving Agricultural Transformation

In addition to debt relief efforts, the AfDB has significantly contributed to Zimbabwe’s agricultural development. Through the $25 million emergency food production project launched in July 2022, over 31,000 farmers—including 35% women—received support, increasing production across 65,000 hectares, with an expansion target of 200,000 hectares. The initiative, part of the Bank’s Technologies for African Agricultural Transformation (TAAT) program, has distributed climate-smart seeds to over 40 million farmers across 30 African countries.

Empowering the Private Sector

AfDB has also strengthened Zimbabwe’s private sector, providing $55 million in lines of credit during 2023–2024 to promote business growth and economic diversification.

A Call for Unity and Continued Progress

President Mnangagwa urged future leaders to continue building on this legacy, highlighting Zimbabwe’s potential in the global energy transition due to its vast critical mineral resources, including lithium and platinum group metals. He echoed Dr. Adesina’s sentiment that resolving Zimbabwe’s debt is essential for the nation’s future prosperity, stating, “It is time to end the decades of economic hardship and usher in a new era of collective hope and shared prosperity.”

Zimbabwe’s Path Forward

With the support of the African Development Bank Group and a commitment to reform, Zimbabwe is taking bold steps toward full reengagement with the international financial community. This journey represents more than debt clearance—it is a symbol of Zimbabwe’s determination to rebuild its economy and secure a brighter future for its people.