Zimbabwe President Hosts Creditors to Discuss Debt

Zimbabwe's President Emmerson Mnangagwa convened a conference with creditors to address the country's $12.7 billion external debt, which constitutes 81% of its GDP. The meeting aims to develop a strategy for clearing arrears and potentially accessing international capital markets for the first time in over 20 years. Mnangagwa highlighted the importance of negotiating a Staff Monitored Program (SMP) with the International Monetary Fund (IMF) to signal a commitment to economic reforms. Experts assert that resolving arrears is crucial for attracting investment and reducing borrowing costs, as current debt conditions prevent access to IMF funds. The African Development Bank has expressed readiness to support Zimbabwe's efforts, contingent on progress in debt restructuring. While previous deadlines for economic reforms have been missed, the government is optimistic about establishing clearer timelines by mid-2025.