THE African Development Bank Group (AfDB) has approved a US$4 million grant to support Zimbabwe’s efforts to clear its debt arrears and re-engage with the international financial community.
The funding will finance the Zimbabwe Arrears Clearance Dialogue Enhancement Project (ZACDEP), aimed at strengthening dialogue and reforms needed to advance the country’s arrears clearance process, the Abidjan-headquartered institution said yesterday.
The grant is expected to help Zimbabwe to build consensus among creditors and stakeholders on key reforms needed to resolve its debt crisis and restore access to international financing, which has remained largely closed to the country for more than two decades due to arrears.
As of the end of 2025, Zimbabwe’s public debt stood at approximately US$21,5 billion, including US$11,7 billion in external debt, of which about US$7,7 billion is owed to multilateral and bilateral creditors.
This burden of arrears has severely constrained the country’s access to external financing and limited public investment.
The grant, provided under the African Development Fund’s Transition Support Facility Pillar III, builds on the Support for Arrears Clearance and Governance Enhancement (SACAGE) project approved in 2022. SACAGE established the Structured Dialogue Platform and sector working groups, bringing together the government of Zimbabwe, creditors, development partners, civil society organisations and the private sector to sustain dialogue on reforms and debt resolution.
To be implemented by the government over a 36-month period from June 2026 to May 2029, ZACDEP aims to strengthen dialogue and build consensus on the prerequisites for implementing an arrears clearance roadmap.
The project comprises three components.
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The first component, enhanced dialogue, will support engagement through the structured dialogue platform and sector working groups covering economic growth and stability, governance, and land tenure reforms. It will also include advisory services, legal support, communication and diplomatic outreach.
The second component, strengthened capacity, will support upgrades to debt management systems, reinforce parliamentary oversight and strengthen anti-corruption measures.
The third component, project management, will cover coordination, procurement, financial management, and monitoring and evaluation.
The project incorporates a gender-responsive approach, recognising that prolonged debt distress has disproportionately affected women and young people.
The approval by the AfDB board follows the International Monetary Fund Staff-Monitored Programme approved in April 2026, regarded as a key step towards broader debt resolution.
It also reflects progress in macroeconomic stabilisation under reforms anchored on the second phase of Zimbabwe’s National Development Strategy.
AfDB country manager for Zimbabwe, Eyerusalem Fasika, said the approval “reaffirms the African Development Bank’s strong commitment to supporting Zimbabwe’s economic resilience”.
“Clearing arrears is the gateway to unlocking the development financing the country urgently needs,” Fasika said.
The approval of the grant also comes after new AfDB president Sidi Ould Tah agreed to champion Zimbabwe’s arrears clearance and debt resolution process. He succeeds Akinwumi Adesina, who previously served as AfDB president.
