HARARE, Apr. 15 (NewsDay Live) – Zimbabwe is in discussions with the UK, Germany, Japan, France, Algeria and other partners to secure US$2,5 billion in bridge financing to clear arrears to the African Development Bank (AfDB) and the World Bank, a move aimed at unlocking fresh capital, the finance minister Mthuli Ncube said on Wednesday.
According to the Quarterly Public Debt Bulletin for December 2025, Zimbabwe’s total public and publicly guaranteed debt stood at US$21,53 billion. The figure is lower than September’s US$23,35 billion after Treasury excluded Reserve Bank of Zimbabwe liabilities amounting to US$2,24 billion.
External debt accounts for US$11,7 billion, while domestic debt stands at US$9,8 billion. Of the external obligations, Zimbabwe owes the World Bank US$1,61 billion and the AfDB US$759 million.
Clearing these arrears is expected to open access to medium- to long-term financing for priority projects under the National Development Strategy 2.
“It is US$2,5 billion and we are — I won’t use the word ‘negotiations’ — having conversations with potential sponsors for that bridge loan,” Finance minister Mthuli Ncube said during an online briefing with local journalists on the sidelines of the ongoing IMF/World Bank Spring Meetings.
“We have conversations with the UK, Germany, Japan, France, Algeria and others — these are the countries we are engaging on this potential facility.”
Keep Reading
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Bulls to charge into Zimbabwe gold stocks
- Ndiraya concerned as goals dry up
- Letters: How solar power is transforming African farms
Ncube said the bridge financing is specifically structured to settle arrears rather than fund new projects.
“The bridge finance is a specific issue to clear the arrears; the arrears are known, so the US$2,5 billion reflects that position. It is a give-and-take arrangement,” he said.
“It is not general borrowing for development, but a short-term facility — effectively for 24 hours — backed by what we call the ‘Set Aside’ to clear the arrears. Once cleared, Zimbabwe can then access medium- to long-term financing.”
The “Set Aside” facility falls under the AfDB’s Transition Support Facility — formerly the Fragile States Facility — which provides flexible financing to countries facing economic or institutional challenges.
Ncube said progress was being made in securing institutional backing for the arrears clearance strategy.
“We are at a stage where we are getting a champion from the African Development Bank, Dr Sidi Ould Tah, and I met him in Ivory Coast last week,” he said.
“He has agreed to come in as a champion, succeeding Dr Akinwumi Adesina, working alongside former Mozambican president Joaquim Chissano.”
However, Ncube stressed the need for additional partners to underwrite the bridge facility.
“We need champions that can support us with the bridge financing to clear the World Bank and AfDB loans,” he said.
He outlined a two-step structure for the facility.
“First, there are ‘soft windows’ under the African Development Fund (ADF), which utilise grant-based resources within these institutions rather than commercial funding,” Ncube said.
“Second, a champion — or a group of them — provides the US$2,5 billion facility. Technically, the loan runs for a few hours, but we structure it as 24 hours to accommodate operational processes.”
The lenders would be repaid through the Set Aside mechanism within the multilateral development bank framework.
“It is a unique structure that does not involve commercial terms such as securitisation,” Ncube said.
Zimbabwe is currently under a 10-month IMF Staff-Monitored Programme, which runs until December.