Zimbabwe is urgently working to identify and sell off several State-owned Enterprises (SOEs) to help reduce its growing public debt, which has exceeded US$21 billion.
This massive debt, which makes up nearly 90% of the country’s GDP, is threatening economic progress and undermining fiscal stability.
Major creditors include the World Bank, the African Development Bank (AfDB), and members of both the Paris and non-Paris Clubs.
The debt has been driven by years of borrowing, and its interest now outweighs the country’s economic growth.
Speaking to <a href="https://businesstimes.co.zw/treasury-to-sell-off-state-assets/">Business Times</a> on the sidelines of the launch of the National Venture Capital Company of Zimbabwe (NVCCZ) event last week, Finance Minister Mthuli Ncube said the government has begun identifying assets for sale as part of efforts to address the debt. He said:
<blockquote>
We are looking to see which assets we should target. It’s a work in progress. When opportunities arise, we will swing on the right assets and we’ll be able to allow ourselves to dispose of them.
What is more worrisome to me is that Zimbabwe’s average growth of around 6% is way lower than the interest rate growth.
This means that our debt will continue to be increasing. That’s why we have to restructure our debt to ensure that the debt does not accumulate.
</blockquote>
Ncube urged stakeholders from various sectors—such as the private sector, civil society, and development partners—to view the debt crisis as a national issue, not just a government problem.
Last year, the government launched high-level dialogue platforms led by AfDB President Akinwumi Adesina and former Mozambican President Joaquim Chissano.
However, delays in implementing key governance reforms, necessary for clearing arrears and resolving debt, have slowed progress.
Economist Gift Mugano warned that the country’s rising debt, combined with its limited ability to repay, could lead to a full fiscal crisis if not addressed quickly. He said:
<blockquote>
The government’s slow pace in addressing governance reforms risks further isolating Zimbabwe from international financial support.
The rising debt levels demand immediate restructuring or forgiveness to avoid economic catastrophe.
</blockquote>

Pindula News

Zimbabwe owes a lot of money, about $21 billion, which is a huge problem because it is more than the country makes. The government wants to sell some things that they own to help pay off the debt. The Finance Minister said they are working on this plan. If they don't fix this problem soon, it could lead to a big crisis for the country. Some experts are worried that Zimbabwe might not get any more money from other countries if they don't make changes. It is important for everyone to work together to solve this problem, not just the government.

Arrears Latest News

Latest Jobs