By Staff Writer
ZIMBAWE’s debt clearance efforts have been struck a bitter blow following the decision by the United States to pull out over Harare’s reluctance to implement critical reforms.
This follows sentiments echoed by the US Charge d’ Affaires Ms Elaine French, in a video broadcast, indicated her government’s decision to temporarily walk away in protest over the outcome of the August 2023 Harmonised elections
“The Government of Zimbabwe committed to taking up reforms. We really haven’t seen those statements translating into action especially when it comes to elections.
“We did not see those reforms before, during and after elections. The United States Embassy has decided to press pause on our involvement in the AfDB dialogue,” the top envoy said.
The withdrawal of the US is likely to serve as a major setback which will discourage other nations considering the former’s influence on economic matters globally.
Zimbabwe’s total consolidated debt amounts to US$17.5 billion. Debt owed to international creditors stands at US$14.04 billion, while domestic debt comes to US$3.4 billion. Debt owed to bilateral creditors is estimated at US$5.75 billion, while debt to multilateral creditors is estimated at US$2.5 billion.
The unresolved matter which spillover to the last government has limited the country’s financing opportunities leaving huge private sector potential idle due to lack of funding as the nation remains blacklisted.
Since late 2022, the government of Zimbabwe has been engaged in a concerted process to resolve its official debt and clear its arrears with international creditors, including the African Development Bank.
Last year , the Zimbabwean government held the fifth in a series of structured dialogue meetings with development partners and creditors.
The Zimbabwean finance and economic development ministry organised the meeting to review three draft policy reform matrices on economics, governance and land tenure and compensation to former farmers under the terms of what are known as the Bilateral Investment Promotion and Protection Agreements.
Some influential voices in the corridors of power believe that the move by the US has nothing to do with debt repayment but rather a strong indication of the desire to interfere politically.
However, others believe that the reforms are key and Harare has the responsibility to be honest in its endeavor to re-engage.
