AfDB president, Chissano expected in the country f...

AfDB president, Chissano expected in the country for debt dialogue

Former Mozambican President Joachim Chissano and African Development Bank President Dr Akinwumi Adesina are expected in the country early this week for the Third Structured Dialogue Platform on arrears clearance and debt resolution process.

The visit marks a third round of high-level talks on the country’s arrears clearance and debt resolution process which will commence on Thursday to consider a framework of proposals to resolve the country’s position.

Ministry of Foreign Affairs and International Trade spokesperson Mr Livit Mugejo confirmed the meeting.

“This round of meetings, we expect former president of Mozambique Joachim Chissano and AfDB president Adesina to attend and it will be held from May 11 to 15.

“We are also expecting Government officials, development partners, creditors and diplomats to attend the meeting,” he said.

Parties to the negotiations have endorsed a three-pronged strategy to guide Zimbabwe through the arears clearance and debt resolution programme.

This entails implementation of economic reforms of Zimbabwe’s governance systems.

The country has also been asked to commit to compensation of white former commercial farmers for improvements made on farms and resolution of cases of farms covered by Bilateral Investment Promotion and Protection Agreements that were affected during the Land Reform Programme.

President Mnangagwa appointed Dr Adesina as the country’s arrears clearance and debt resolution champion last year, while former president Chissano is the high-level facilitator of the process.

Economic analyst Persistence Gwanyanya said the meetings show that the Government is committed to clearing its arrears and focus on development of the country.

“Government has started making payments to international financers, which are the preferred creditors, and that is commendable.

“Engaging the AfDB president and the former Mozambique president to champion the debt clearance shows that the country values this issue and is committed to clear its debt and arrears.

“Debt is seen as an albatross around Zimbabwe’s neck because it is limiting our access to international financial markets because to rebuild the economy requires affordable capital.

“We are having challenges through using short-term capital to rebuild our infrastructure and this has had negative effects on the stability of the Zimbabwe dollar,” he said.

Zimbabwe’s total external public debt as at the end of September 2022 stood at US$14,435 billion, including the US$5,632 billion bilateral debt.