Business Reporter
ZIMBABWE’s debt stock rose to US$23,4 billion as at September 2025 , signifying difficulties experienced by authorities in efforts to ease the heavy burden on the economy’s shoulders.
A report released by the Finance and Investment Promotion Ministry confirms that the local economy is dire straits which requires serious commitment to address the burdensome debt challenges.
“As at the end of September 2025, the total public and publicly guaranteed (PPG) debt in US$- terms stood at US$23.4 billion, representing 8.5 per cent increase from US$21.5 billion, as at end December 2024. The debt stock comprises external debt amounting to US$13.6 billion (58.1 per cent), and domestic debt of US$9.8 billion (41.9 per cent),” the report said.
The increase in the stock of PPG debt from end-December 2024 is attributed to the increase in Domestic Expenditure Arrears to service providers, which increased from US$34.0 million in December 2024, to US$1.3 billion as at end September 2025. These arrears have been derived from raw data, which has not been validated by Treasury.
The stock of external debt stood at US$13.6 billion as at end September 2025, comprising of bilateral debt of US$6.5 billion (47.5 per cent), Multilateral debt of US$4.9 billion (36.0 per cent), and RBZ liabilities assumed by Treasury US$2.2 billion (16.6 per cent).
“As of end-September 2025, Zimbabwe’s external debt arrears are estimated at US$7.7 billion, with 63.2 per cent owed to the Bilateral creditors, and 36.8 per cent to multilateral creditors,” the report said.
Out of the US$6.4 billion outstanding to bilateral creditors, Paris Club creditors account for 64.9 percent. Almost all of the outstanding debt from the16 Paris Club creditors, is in arrears (98 per cent). About 35.1 per cent is owed to Non-Paris Club creditors.
In comparison, the government made little external debt service payments amounting to US$220.25 million from January to September 2025, comprising of the active portfolio, US$188.57 million, legacy debts of US$28.86 million and token payments of US$2.81 million, with an additional US$86.6 million expected to paid before the end of 2025.
Total domestic debt increased from ZiG217.6 billion (US$8.7 billion) reported as at end December 2024, to ZiG261.1 billion (US$9.8 billion) as at end September 2025 due to the rise in domestic expenditure arrears to service providers which are now estimated at ZiG34.1 billion (US$1.3 billion), a figure deemed preliminary, as the Treasury will conduct a validation exercise for all the claims before payments are made.
Guided by the Expenditure Arrears Clearance Strategy, to clear these arrears and curb their further accumulation during the period January to September 2025, government made domestic debt service payments amounting to ZiG11.2 billion, with payments for maturing Treasury bills/bonds amounting to ZiG9.1 billion and the respective interest bill of ZiG2.1 billion, with an additional ZiG4.8 billion expected to paid before the end of 2025
