THE Zimbabwe Coalition on Debt and Development (Zimcodd) has called for full public disclosure and parliamentary scrutiny of the government’s proposed US$150 million bridge financing facility from the African Development Bank (AfDB), warning that it could deepen the country’s debt burden.
Earlier this month, Finance, Economic Development and Investment Promotion minister Mthuli Ncube told an International Monetary Fund (IMF) review mission that the government was making progress in mobilising support for arrears clearance and bridge financing, including the AfDB’s proposed US$150 million facility.
Treasury revealed during the discussions that the financing forms part of broader efforts to clear debt arrears, restructure obligations and restore Zimbabwe’s access to international capital markets under the country’s Staff-Monitored Programme with the IMF.
Last month, the AfDB noted that Zimbabwe needed US$2,7 billion in bridge financing to clear arrears owed to international financial institutions.
According to Treasury, Zimbabwe’s public and publicly guaranteed debt stood at US$21,53 billion last year. However, the figure excluded US$2,24 billion in liabilities assumed by the Reserve Bank of Zimbabwe (RBZ), implying that the actual debt burden was closer to US$23,35 billion.
“Zimcodd therefore emphasises the need for transparency throughout the negotiation process, including public disclosure of the facility’s terms, conditions and repayment obligations. Citizens must be assured that any new borrowing contributes to sustainable economic recovery and does not further compromise resources required for essential public services and social development,” Zimcodd said in its weekend review.
“The proposed financing appears to be linked to the arrears clearance strategy and could serve as a form of bridge financing intended to unlock larger debt restructuring and concessional financing opportunities.
“However, securing the facility will depend on continued progress under the IMF Staff-Monitored Programme, governance reforms and creditor confidence in Zimbabwe’s debt resolution roadmap.”
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While debt resolution is necessary to unlock development financing, Zimcodd maintains that transparency, parliamentary oversight and public accountability must guide any new borrowing.
“Government should publicly disclose the full terms and conditions of the proposed US$150 million AfDB facility, including whether it is a bridge loan, repayment obligations, interest rates and associated risks,” Zimcodd said.
“Parliament and citizens must be given an opportunity to scrutinise the borrowing arrangement to ensure that it does not further deepen Zimbabwe’s debt burden. Transparency is critical, given concerns about the exclusion of some debt obligations, including RBZ liabilities, from public debt reporting.”
Zimcodd said any future financing must demonstrate clear developmental benefits and be accompanied by safeguards that prioritise investments in health, education, water, agriculture and social protection to ensure tangible improvements in people’s lives.
The concerns come as Zimbabwe intensifies efforts to secure fresh development financing and restore access to international capital markets.
Last week, Ncube led a Treasury delegation to Beijing for discussions with the Asian Infrastructure Investment Bank (AIIB) following Zimbabwe’s formal application for membership, seeking long-term funding for infrastructure, climate resilience, energy and water projects.
“During the discussions, the AIIB outlined its four priority areas, namely sustainable infrastructure development, green and climate-resilient infrastructure, regional connectivity and integration, and mobilisation of capital for private-sector development financing,” Treasury said in a statement.
“These pillars guide the bank’s financing approach across transport, energy, water, urban development, digital infrastructure and climate resilience projects.”
Ncube emphasised that Zimbabwe is seeking long-term financing and technical partnerships to expand sustainable energy and water systems, which are central to the country’s economic transformation.
