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Mukudzei Chingwere-Herald Reporter

ZIMBABWE is now reliable and committed to keeping the obligations that it makes, African Development Bank (AfDB) president Dr Akinwumi Adesina said when accepting President Mnangagwa’s request to be a champion of Zimbabwe’s debt clearance strategy.

Dr Adesina met President Mnangagwa at State House in Harare on Tuesday to tell him that he had accepted a role to be champion of the debt and arrears clearance process due to the region and continent’s need to have a stronger Zimbabwe.

The AfDB president said he accepted Zimbabwe’s request gladly and further explained why he accepted the role.

“I have accepted it very gladly. I accepted because I am president of the African Development Bank. Zimbabwe is a part and member of the African Development Bank,” said Dr Adesina.

“Zimbabwe has been and continues to be a very active and reliable shareholder of the African Development Bank. The economic challenges have not changed anything with regards to Zimbabwe and the African Development Bank.

“Zimbabwe actually paid its subscriptions to the African Development Bank… in a very tough environment. Zimbabwe has been making token payments.

“Zimbabwe is reliable. Zimbabwe is committed to keeping the commitments that it made,” said Dr Adesina.

According to the AfDB, Zimbabwe has continued to make token payments of about US$700 000 each quarter to service some of the outstanding debt with the regional banking group, the World Bank, and other lenders.

Zimbabwe has been making token payments to all the foreign financiers it owes among them the Paris Club, which has 17 members, the World Bank and the AfDB.

“I came here to listen, to understand and appreciate what needs to be done to get where we need to,” said Dr Adesina.

“I will not work alone but will work closely with President Mnangagwa, Finance Minister Professor Mthuli Ncube, development partners, multilateral partners and the international community. I am very optimistic that working together we will be able to get there.

“I understand it will be quite challenging but it will not be an impossible task. I am quite happy to play this role”.

Minister Ncube said the country was committed to play its part in ensuring the debt is cleared, as part of President Mnangagwa’s thrust to walk the reform agenda.

Debt clearing is important for Zimbabwe to unlock fresh funding from international financial institutions to fund projects like infrastructure development.

Even without this support, Zimbabwe has funded several infrastructure developments including restoration of roads, dam construction, among other things, using its own resources.

“What we have done so far is to begin token payments to the AfDB, the World Bank, EIB and all 17 Paris Club members,” said Minister Ncube.

“What needs to be done is to implement the full roadmap for arrears clearance. For this to work well we need a champion and I am pleased to say that Dr Adesina has agreed to be the champion, to cajole all partners around the world for us to be able to implement our arrears clearance strategy.

“We have to continue with the reforms we have started and make sure they are completed so that we can continue to stabilise the economy”.

Both debt clearance and access to new funding will be far simpler if the financial sanctions imposed by some, especially the US, are removed. US law charges the US representatives on some international bodies to oppose any attempt to include Zimbabwe in debt relief measures and even if Zimbabwe was no longer in arrears it could still face the largest shareholder in some bodies, the US, voting against any measure that might support Zimbabwe. 

Re-engagement has seen a number of other supporters of sanctions modifying their stand and this political process is likely to see the US unable to put together a majority as Zimbabwe, with help from those like Dr Adesina, works to clear away the purely financial hurdles that prevent access to new finance.