ZIMBABWE is under pressure to implement key reforms demanded by the arrears clearance and debt process, with the mediators pushing to conclude the process next year, NewsDay can report.
The debt resolution process started in December 2022 with the African Development Bank president Akinwumi Adesina being appointed the process champion and former Mozambican president Joaquim Chissano as the high-level facilitator.
Yesterday, Zimbabwe held the 6th High-Level Structured Dialogue Platform on the national debt arrears to update stakeholders on the progress made and discuss a roadmap to contain the country’s indebtedness.
While there has been contestation around the actual debt, Adesina said arrears had become the new debt and were now sitting at US$21 billion.
In a statement, the United States, which returned to the platform yesterday, said recently released independent assessments of the dialogue’s governance indicators demonstrated that much work remained to be done.
It identified issues such as judicial independence, freedom of association and assembly and civil society space as some of the matters that need to be addressed.
“Similarly, there is only modest progress to note in the land reform or economic tracks. Despite this, our return to the dialogue reflects our commitment to the Zimbabwean people and the need for genuine political will to advance reforms in the three dialogue pillars,” the US embassy said.
Meanwhile, addressing the delegates, Adesina said it was critical to make sure that everything was in place, including getting consensus and ensuring delivery on key reforms including human rights, governance issues and elections, among others reforms.
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He said key issues remained on the PVOs Bill and farmer compensation, adding that the IMF Staff Monitoring Programme expected in January next year would provide benchmarks.
“It is my hope and expectation that our seventh meeting will be on the conclusion of the arrears clearance and debt resolution. Let me state that we now need to collectively agree on a time-bound conflict plan to deliver the arrears clearance and debt resolution,” Adesina said.
“And that is why the African Development Bank, through the African Legal Support Facility, has supported the engagement of a sovereign advisory firm, to develop a fit-for-purpose arrears clearance and debt resolution action and timeline.”
He said it was critical to have at least one country to champion the arrears clearance and debt resolution.
He said France and Zimbabwe’s development partners needed to provide clarity on the triggers and incentives to support the country as it consolidates reforms already implemented.
Adesina said significant milestones had been reached against all odds on the governance pillar.
He said partners had agreed that benchmarking of progress should be conducted by globally respected and independent organisations such as the World Justice Report Project, the Mo Ibrahim Index on African Governance, and Transparency International Corruption Perception.
Chissano said while progress had been made some challenges remained that needed to be addressed.
“For instance, we would like to advise the Government of Zimbabwe to enhance co-ordination of the dialogue process on the three pillars to ensure the speedy implementation of reforms and commitments made.
“On the other hand, there is a need to evaluate why nine sub-indicators registered a negative measurement this year and what needs to be done to reverse this negative assessment,” he said.
Chissano called for engagement between government and civil society organisations on the PVOs Bill.
He said the most significant achievement of economic reforms had been increased transparency on financial accounts.
“On land reform, the Government of Zimbabwe has been working towards the introduction of a bankable 99-year land lease as well as compensating former farm owners whose farms were seized during the 2000 land reform programme.
“The government has earmarked in its 2024 budget US$35 million for compensation, being US$15 million for former farm owners under the Global Compensation Deal and US$20 million for farms covered by the Bilateral Investment Promotion and Protection Agreement, BPAS.
“Therefore, while further work is needed on the 99-year lease, compensation of farmers can proceed before the end of the year, as the review process of applications has been successfully concluded. Governance reforms are drawn from the National Development Strategy 1 and are focused in six areas, namely enhanced justice delivery, public sector transparency and accountability, combating corruption, promotion of human rights, electoral reforms and national unity.”
Finance, Economic Development and Investment Promotion minister Mthuli Ncube said there were three dates to watch out for including in January 2025 for the SMP commencement, July, halfway through the SMP, and around September when a review will be made.
