Story by ZBC Reporter
Speaker of Parliament Advocate Jacob Mudenda has called for tighter parliamentary oversight on Zimbabwe’s public debt, warning that ineffective debt management threatens the nation’s economic stability and development prospects.
Addressing a Joint Capacity Building Workshop in Masvingo for the Portfolio Committees on Budget, Finance and Investment Promotion and Public Accounts, Honourable Clemence Chiduwa, Chairperson of the Portfolio Committee on Industry and Commerce, delivered the keynote address on behalf of Speaker of Parliament, Advocate Jacob Mudenda.
The workshop, which was attended by Members of Parliament, Ministry of Finance officials, and representatives from regional debt management institutions such as MEFMI, ZIMCODD, and AFRODAD, aims to enhance MPs’ technical understanding of national debt management.
The Clerk of Parliament, Mr Kennedy Chokuda gave the welcome remarks.
Advocate Mudenda in a speech read on his behalf urged Members of Parliament to fully exercise their constitutional mandate in scrutinising government borrowing and debt servicing obligations.
Zimbabwe’s total public and publicly guaranteed debt stood at US$21.2 billion in 2024, with US$12.3 billion in external debt and US$8.7 billion in domestic debt, representing approximately 60% of the country’s Gross Domestic Product (GDP).
While this aligns with the Southern African Development Community (SADC) convergence benchmark, Advocate Mudenda noted the figure is still a heavy burden on public finances.
“This debt burden weighs on public finances, diverting resources from infrastructure investments, constraining future GDP growth and structural transformation,” he said.
Citing Section 300 of the Constitution and the Public Debt Management Act, the Speaker said Parliament is crucial in ensuring all government loans are transparent, justifiable, and sustainable.
He criticised the lack of compliance by some state-owned enterprises and local authorities in submitting audited financial statements and borrowing records.
“The 2023 Auditor General’s report highlighted that some entities were behind with their audited financial statements, with some dating back to 2018. This is a blatant violation of the Public Finance Management Act,” AdbocateMudenda said.
He also questioned whether Parliament was fulfilling its oversight responsibilities, suggesting that some committees may be neglecting their constitutional duties.
“Although the Government has declared its commitment to effective debt management, it appears that the relevant Committees have either been oblivious to their role or have failed to take up the executive at its word,” he said.
Speaker Mudenda stressed the importance of building capacity within parliamentary committees to monitor and evaluate the impact of public loans, calling for loans to be contracted only under fair and concessional terms, and used for productive, growth-enhancing projects.
“Sound debt management is a national security imperative,” he said, echoing sentiments by international leaders and institutions. “Addressing a nation’s debt burden is not merely a technical matter but also a moral and political responsibility.”
He officially opened the workshop with a call for insightful and solution-oriented deliberations.
