ZIMBABWE PLEDGES STRONGER DEBT TRANSPARENCY AS PUBLIC DEBT HITS UNSUSTAINABLE LEVELS

HARARE— The Zimbabwe Public Debt Management Office has committed to tightening monitoring and compliance frameworks as the country grapples with rising public debt and arrears, with officials warning that fiscal discipline is now non-negotiable.

Delivering opening remarks on behalf of Mr. A. Bvumbe, Head of the Zimbabwe Public Debt Management Office, Mr. T. Karise, Deputy Director of Monitoring, Compliance and Risk Management, told stakeholders on Tuesday that debt sustainability must underpin all government borrowing decisions going forward.

“On behalf of the Head, Mr. A. Bvumbe, I wish to reiterate that the mandate of this office is clear: to ensure that every dollar borrowed delivers value, is contracted transparently, and is repaid in a manner that does not compromise service delivery,” Mr. Karise said at the launch of the Zimbabwe Arrears Clearance Dialogue Enhancement Project at Holiday Inn Hotel in Harare.

He noted that Zimbabwe’s public debt remains elevated, driven largely by external arrears, domestic obligations, and guaranteed debt. Mr. Karise said the office has prioritized improving data accuracy, reporting timelines, and adherence to the Public Debt Management Act as part of broader reforms to restore creditor confidence.

The Deputy Director emphasized that compliance and risk management will be central to the 2026 borrowing plan. He said all new loans will be subjected to stricter appraisal, with a focus on concessional financing, project viability, and alignment to the National Development Strategy.

“Monitoring cannot be an afterthought. We must track disbursements, utilization, and repayment in real time. Any deviation must be flagged early so that corrective action is taken before it becomes a fiscal risk,” Mr. Karise stated.

Mr. Karise also called for greater coordination between line ministries, local authorities, and state enterprises to ensure guaranteed debt does not become a contingent liability for Treasury. 

He said the Debt Management Office will publish quarterly debt bulletins and strengthen public engagement to improve accountability.

*Speaking at the ZACDEP launch, Mr. Karise said the project’s objective is to enhance dialogue and build consensus on prerequisites for implementation of a roadmap for financing and clearance of Zimbabwe’s arrears.

He noted that clearance of arrears and debt resolution remain critical for macroeconomic stabilisation, unlocking development financing and achieving inclusive and sustainable economic growth.

*He announced that the African Development Bank had availed resources amounting to UA3 million, approximately US$4 million, for the project.

The Project Grant Agreement was signed on 30 June 2026 and implementation will run for 3 years up to 30 June 2029, aligned to government priorities on economic growth, governance, and land tenure reforms.

*Mr. Karise further highlighted that the predecessor project, SACAGE, had significantly enhanced Zimbabwe’s capacity to engage creditors and development partners through the Structured Dialogue Platform and Sector Working Groups.

He added that the ongoing IMF 10-month Staff Monitored Programme and the compensation processes under BIPPAs and the Global Compensation Deed were reinforcing trust and property rights, in line with NDS2 goals of attaining Vision 2030.

Concluding on behalf of Mr. Bvumbe, he urged development partners and creditors to support Zimbabwe’s debt resolution process, adding that transparency, policy consistency, and adherence to compliance standards remain key to unlocking new financing and achieving long-term debt sustainability.