Story by Stanley James, Business Editor
THE African Union (AU) has endorsed Zimbabwe’s debt and arrears clearance strategy, expressing confidence in the Government’s roadmap to restore access to regional and international development financing.
The endorsement emerged during the African Union Dialogue on Debt Sustainability and Reform, where policymakers discussed the growing debt burden facing African economies and measures to strengthen fiscal sustainability.
African Union Commission Head of Economic Policy and Sustainable Development, Dr Patrick Olomo said many African countries continue to grapple with high borrowing costs that constrain development, while commending Zimbabwe’s commitment to debt restructuring.
“African countries continue to face disproportionately high borrowing costs, limiting fiscal space and constraining development priorities. Our discussions have focused on the need to reduce the cost of financing. Zimbabwe is also facing these challenges, but one notable aspect is the Government’s commitment to implementing a debt restructuring plan that will support future development. We are encouraged by the progress being made on Zimbabwe’s debt restructuring strategy.”
Head of Zimbabwe’s Public Debt Management Office in the Ministry of Finance, Economic Development and Investment Promotion, Mr Andrew Bvumbe said Government remains committed to clearing outstanding debt through continued engagement with creditors.
“Zimbabwe is already doing its best in clearing all the outstanding debts; this is being done through several engagements with all our creditors. We are finding each other, and the way forward is to further accelerate this initiative based on the need to restore global and regional financial confidence.”
Government is also intensifying domestic resource mobilisation efforts to support the implementation of its debt and arrears clearance strategy as it seeks to strengthen economic stability and rebuild confidence among development partners.
