AfDB’s Adesina Seeks Debt Deal for Zimbabwe Before Tenure Ends in August 2025

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HARARE,– Zimbabwe’s chief debt negotiator, African Development Bank (AfDB) President Akinwumi Adesina, has expressed determination to secure a debt restructuring deal for the country before his term ends in August 2024.

“I am going to work as hard as I can so that we can get this done before my time ends,” Adesina said at a debt conference in Harare on Monday, responding to questions from Bloomberg. “I will make sure that we get into a good place by the time that I leave.”

Adesina’s commitment underscores the urgency of resolving Zimbabwe’s $21 billion debt, a long-standing burden that has kept the southern African nation locked out of international capital markets for over two decades.

High-Level Efforts and Technical Assistance

Zimbabwean President Emmerson Mnangagwa enlisted Adesina and former Mozambican President Joaquim Chissano in 2022 to lead debt restructuring talks with creditors, including the World Bank, the Paris Club, the European Investment Bank, and the AfDB. Recently, the government hired advisory firms Global Sovereign Advisory and Kepler-Karst to provide additional technical expertise.

The AfDB is exploring the use of its African Development Fund (ADF) to help clear Zimbabwe’s arrears, a mechanism previously utilised to assist debt-distressed nations such as Sudan and Somalia.

“We are going to make a request to have it set aside during the African Development Bank’s 17th replenishment to allow for resources to clear the arrears of Zimbabwe,” Adesina said.

Reforms and Compensation Commitments

As part of its debt clearance strategy, Zimbabwe has committed to reforms and compensation for white farmers whose land was seized during the controversial land reform programme in 2000.

Adesina revealed that the government has identified 439 former landowners as eligible beneficiaries for a $331 million financial settlement. While the timeline for disbursement remains undisclosed, the gesture is seen as a critical step toward rebuilding trust with creditors and investors.

Additionally, Zimbabwe is negotiating a Staff Monitored Program (SMP) with the International Monetary Fund (IMF), which would provide a framework for the country to demonstrate its commitment to sound economic policies. If approved, this would mark Zimbabwe’s first SMP in five years.

“The implementation of any reforms under the SMP, however, impacts negatively on the vulnerable groups of our population,” Mnangagwa said during the conference. “In this regard, the protection of the vulnerable groups through effective social protection is of critical importance.”

The Road Ahead

Zimbabwe’s debt resolution process is fraught with challenges but holds the potential to unlock international financing, a critical need for a nation grappling with economic instability.

Adesina’s commitment to concluding the debt deal before the end of his term, combined with Zimbabwe’s moves to meet creditor expectations, has injected cautious optimism into the process.

However, analysts caution that achieving a comprehensive agreement will require not only technical progress but also significant political will to implement necessary reforms.

The stakes are high, as successful debt restructuring could provide Zimbabwe with the fresh capital needed to rebuild its economy and restore investor confidence after years of isolation.