Zimbabwe’s arrears clearance and debt restructuring strategy has gained fresh international momentum after the United Kingdom and France agreed to co-chair the Debt Consultative Group (DCG) under the country’s Structured Dialogue Platform, a development widely viewed as a strong vote of confidence in Government’s ongoing economic reform agenda.
The announcement was welcomed during a post Mid-Term Budget Review engagement held in Harare yesterday, where representatives from multilateral financial institutions, Government and the private sector reaffirmed their commitment to supporting Zimbabwe’s efforts to restore debt sustainability and strengthen macroeconomic stability.
Finance, Economic Development and Investment Promotion Permanent Secretary, George Guvamatanga, said the decision by the United Kingdom and France to co-chair the platform demonstrates growing international confidence in Zimbabwe’s commitment to implementing reforms and honouring its financial obligations.
“It is true that France and the United Kingdom have agreed to lead Zimbabwe’s debt restructuring plan. This shows commitment on their part in accepting and endorsing what we are doing. Since January, we have paid at least US$600 million to both domestic and external creditors,” he said.
Guvamatanga said Treasury remains fully committed to implementing the arrears clearance and debt restructuring strategy, describing the Structured Dialogue Platform as an important mechanism for strengthening Zimbabwe’s engagement with the international financial community.
“As Treasury, we shall continue working with this strategy and riding on this platform. We are optimistic about the future, and this engagement and re-engagement exercise is part of ensuring that Zimbabwe keeps in line with global trends and fulfils the key mandate of restructuring the debt to sustain overall economic needs,” he said.
The Debt Consultative Group is expected to play a critical role in coordinating dialogue between Zimbabwe and its international creditors as the country advances efforts to resolve both domestic and external debt obligations while deepening economic reforms.
During the post-Mid-Term Budget Review meeting, Government also received industry feedback on the prevailing economic environment
Zimbabwe Clothing Manufacturers Association vice-chairperson, Energy Deshe, said the consultative approach adopted by Treasury has strengthened cooperation between Government and business while creating a more predictable operating environment.
“This is one of the positive initiatives to unlock a good and cordial relationship between the business community and Government. The purpose of this meeting was for us as business to tell Government what we are seeing. It is the stable environment that has brought us to where we are today. This shows that Treasury listens to us,” he said.
Business leaders noted that regular dialogue between Government and the private sector has contributed to improved policy coordination, enhanced investor confidence and greater certainty for industry planning.
Government says it will continue strengthening partnerships with the business community, development partners and international financial institutions as it advances the arrears clearance and debt restructuring agenda. Authorities believe the strategy will unlock access to concessional financing, attract new investment and support sustainable economic growth.
The latest support from the United Kingdom and France is expected to reinforce Zimbabwe’s re-engagement efforts with the international community while accelerating progress towards resolving long-standing debt obligations and creating a stronger foundation for inclusive economic development.
