Nhau Mangirazi
Economists have urged the Zimbabwe government to be transparent over ballooning debt affecting its economy for future generations. This follows the recent African Forum, Network on Debt and Development (AFRODAD) 4th annual African Conference on Debt and Development held in Maputo in August. The theme focused on the link between debt and development with feminism and gender equality.
Disability Rights Activist, Masimba Kuchera said there are a lot of loopholes in national debt contracts and obligations and called for a debt audit.
‘‘Due to lack of transparency at times national debt has been awarded to people for personal gain, especially the domestic debt from the Reserve Bank of Zimbabwe. It was never transparent and has been going on for some time. This put a dent on national economic status,’’ he said.
“Some of the debts are illegitimate when money was borrowed to buy a vehicle for top political top brass and not for national development,’’ added Kuchera.
Africa Centre for Economic Justice, Development Economist, Chenayi Mutambasere said Zimbabwe’s debt solutions are limited due to stalled negotiations, which were contingent on credible elections and no human rights abuses.
‘‘Debt strategies should focus on debt swaps for development, inclusive budgeting, and diversification, prioritizing women and youth. Corruption must be tackled to maintain liquidity. We must enable the government to allocate funds such as $100 million monthly toward debt relief rather than losses. There must be transparent debt audits and policy representation for women and young people are crucial for equitable solutions,’’ said Mutambasere.
Mutambasere suggested measure such as regional support, tax reforms, anti-corruption measures and international partnerships as a way to strengthen sustainable debt management.
Over 100 delegates from Africa attended the Maputo Conference where Hwange Central Member of Parliament Fortune Daniel Mguni, part of ten parliamentarians drawn from across Africa was among the participants.
‘‘I attended the conference because of my long history in debt and development advocacy. When the Zimbabwe Coalition on Debt and Development (ZIMCODD) was launched in 2000, l was one of the founding delegates from the Bulawayo province,’’ said Mguni.
Zimbabwe as of 2023 had a consolidated debt amounted to US$17.5 billion. Debt owed to international creditors stood at US$14.04 billion, while domestic debt came to US$3.4 billion. Debt owed to bilateral creditors was estimated at US$5.75 billion, while debt to multilateral creditors was estimated at US$2.5 billion.
According to AFRODAD, Africa’s debt crisis remains a big elephant in the room affecting the continent’s development potential where most African governments continue to pay millions of American dollars for debts accumulated over decades.
