Zimbabwe Engages Former Mozambique President in Debt Clearance Talks

April 9, 2024
chissano mnangagwa | Report Focus News
chissano mnangagwa

In an effort to tackle its longstanding debt crisis, Zimbabwe welcomed former Mozambique President Joaquim Chissano on Monday for crucial discussions with President Emmerson Mnangagwa. Chissano’s visit, aimed at exploring solutions to the nation’s pressing political and socio-economic challenges, highlights a strategic push towards financial stability and international cooperation.

Serving as the High-Level Facilitator for Zimbabwe’s debt clearance initiatives, Chissano brought to the table his extensive diplomatic and governance experience. His delegation included Luisa Diogo, a former Prime Minister of Mozambique and a technical advisor, emphasizing the depth of the dialogue.

Reflecting on the discussions at State House, Chissano underscored the importance of his visit. “The main purpose of my visit was to check on the progress made so far regarding the national debt clearance process,” he stated, emphasizing the dual focus on governance and economic recovery. Chissano’s involvement is pivotal in mediating Zimbabwe’s conversations with its international creditors, given the country’s significant debt burden, which exceeds USD 17.5 billion.

Zimbabwe’s financial obligations are distributed across international financial institutions such as the International Monetary Fund (IMF), the World Bank, the African Development Bank, and the European Investment Bank, with bilateral and multilateral creditors also holding substantial claims.

Finance Minister Mthuli Ncube provided further details on the engagements, noting the inclusion of economic reforms and currency stabilization measures in the discussions. “This is the continuation of engagements around the debt arrears’ dialogue,” Ncube clarified, highlighting the introduction of the Zimbabwe Gold (ZiG) currency and the centralization of Central Bank liabilities as part of the dialogue. The compensation of white farmers was also mentioned as a topic of ongoing conversation.

With upcoming meetings scheduled at the IMF and World Bank Spring Meeting in Washington DC, Zimbabwe’s commitment to resolving its debt issues remains front and center. Chissano’s role as a facilitator will be crucial in these discussions, representing a concerted effort to align Zimbabwe’s economic policies with global financial standards and expectations.

This engagement represents a significant step in Zimbabwe’s quest for economic revitalization, with the support and expertise of regional leaders like Chissano playing a key role in navigating the complex landscape of international debt clearance.