Harare—The Zimbabwean government has expressed optimism about the progress made in the ongoing reforms under the arrears clearance and debt resolution process, emphasizing the importance of sustained dialogue to achieve the initiative’s full objectives.
The implementation of the reforms is being led by Sector Working Groups (SWGs), which focus on the government’s strategic pillars. These include economic growth and stability reforms, governance and land tenure, compensation for former farm owners (FFOs), and the resolution of Bilateral Investment Protection and Promotion Agreements (BIPPAs).
In a statement following a recent meeting with the SWGs, the government underscored the need to maintain dialogue and accelerate efforts towards meeting the goals outlined in the three matrices of the SWGs, highlighting that this will be key to the success of the debt resolution process.
A significant focus has been the effort to make 99-year leases bankable and tradable. As part of this initiative, stakeholders recently visited Tanzania to learn from its experience with bankable and transferable land lease documents.
On the issue of compensation for Former Farm Owners (FFOs), 444 farms have been approved for payment. “The government allocated US$35 million in the 2024 Budget to compensate FFOs, as part of the Global Compensation Deed signed in 2020. Payments will be made for improvements made on the farms,” said Mrs. Anna Tinarwo, Chief Director in the Office of the President and Cabinet (OPC), on behalf of the co-chair of the Land Tenure Reforms SWG, Mr. Willard Manungo.
Regarding BIPPA settlements, 92 farms have been cleared for payment, with US$20 million set aside in the 2024 Budget. “The BIPPA farmers will be compensated for land and improvements, specifically those from countries that had signed and ratified BIPPAs before the Land Reform Programme in 2000, including Denmark, Switzerland, Germany, the Netherlands, and Yugoslavia,” Mrs. Tinarwo added.
During the meeting, private sector representative Mr. Tinashe Masiiwa of the Bankers Association of Zimbabwe commended the progress made on the bankability and transferability of the 99-year lease, stressing the importance of policies that build confidence in the private sector.
Zimbabwe’s public debt, as of June 2024, stands at an estimated US$21 billion, with US$12.3 billion in external debt and US$8.7 billion in domestic debt. The external debt is owed to bilateral and multilateral creditors, including US$681 million to the African Development Bank, US$1.5 billion to the World Bank, and US$427 million to the European Investment Bank.
Andrew Bvumbe, Head of the Zimbabwe Public Debt Management Office, reaffirmed the government’s commitment to implementing its reform agenda under the debt resolution process. “This process is a crucial step towards addressing the longstanding debt overhang that has been a significant barrier to the country’s development,” he said.
The government has appointed Global Sovereign Advisory and Kelper-Karst Law firm, with support from the African Legal Support Facility, to assist in the debt resolution process.
Participants at the meeting included senior government officials, development partners, private sector representatives, civil society organizations (CSOs), and advisors to the High-Level Facilitator, former President of Mozambique Joachim Chissano. The OPC co-chairs the Land Tenure Reforms SWG alongside Switzerland and the United Nations Development Programme (UNDP). Land tenure reforms are also part of Zimbabwe’s National Development Strategy 1 Thematic Working Group, focusing on image building, engagement, and re-engagement.
Co-chair of the Economic Growth and Stability Reforms SWG, Mr. Fidelis Ngorora, Chief Director in the Ministry of Finance, Economic Development, and Investment Promotion, reported progress in transferring foreign currency-denominated liabilities from the Reserve Bank of Zimbabwe (RBZ) to the Treasury and establishing a willing-seller, willing-buyer foreign exchange system.
Ngorora also commented on the ongoing technical discussions with the International Monetary Fund (IMF) to inform a Staff Monitored Programme (SMP), noting that “both parties are reaching a common understanding on critical issues to move forward.”
The IMF delegation is currently in Zimbabwe for its third mission of 2024, assessing the country’s reform progress. Discussions include the introduction of the Zimbabwe Gold structured currency and social protection measures implemented by the government.
Co-chair of the Governance Reforms SWG, Mrs. Vimbai Nyemba, Permanent Secretary in the Ministry of Justice, Legal, and Parliamentary Affairs, highlighted achievements since April, including the drafting of five bills: the Anti-Corruption Bill, Public Interest Disclosure Bill, Protection of Whistleblowers Bill, Witness Protection Bill, and the Zimbabwe Anti-Corruption Act Amendment Bill.
Civil society representatives, including Mr. Isaac Maphosa, Executive Director of the Zimbabwe Institute, expressed appreciation for the government’s engagement on the Private Voluntary Organisations (PVO) Bill, which was reviewed following consultations with CSOs and is now under Senate consideration.
Development partners, including European Union Ambassador Jobst Von Kirchman, Switzerland’s Ambassador Stephanie Rey, UNDP Resident Representative Dr. Ayodele Odusola, and World Bank Senior Country Economist Victor Steenbergen, commended the progress achieved under the reform pillars. They pledged their support for Zimbabwe’s efforts, stressing the importance of sustained dialogue, a stable macroeconomic framework, and accelerated reform implementation.
The government’s Structured Dialogue Platform, established in December 2022, has become a key forum for discussions on economic and governance reforms, forming the foundation of the arrears clearance and debt resolution process. This initiative is being championed by African Development Bank President Dr. Akinwumi Adesina and facilitated by former Mozambican President Joachim Chissano.