By Dennis Ndlovu | Zim GBC News Reporter
Zimbabwe’s public debt has ballooned to US$23.3 billion, a level the World Bank has described as “unsustainable,” limiting the country’s access to international financing and threatening its fragile economic recovery.
In its latest report, the World Bank revealed that the figure is US$2.2 billion higher than the debt figure declared by the Ministry of Finance earlier this year. The International Monetary Fund (IMF) corroborated this estimate in its most recent Article IV Consultation, deepening concerns over transparency in government financial reporting.
“Zimbabwe continues to be in debt distress, with high and unsustainable public debt that limits its access to international financing,” the World Bank warned.
According to the report, total public debt reached 72.9% of GDP in 2024, with arrears owed to the World Bank, African Development Bank, and European Investment Bank. Zimbabwe has remained in default on several international loans since 2000, following the controversial land reform programme under former President Robert Mugabe.
The report identified Germany, France, the United Kingdom, Japan, and the United States as Zimbabwe’s largest Paris Club creditors, collectively accounting for 74% of the country’s US$2.9 billion Paris Club debt.
The World Bank attributed the deepening debt crisis to structural challenges such as macroeconomic instability, dependence on low-productivity agriculture, recurring climate shocks, and high inequality, all of which have hindered sustained poverty reduction efforts.
Despite these headwinds, the report highlighted Zimbabwe’s potential for recovery, citing its highly educated workforce, vast natural resource base, and recent steps toward economic reform.
Economic growth, however, has slowed sharply.
The World Bank said Zimbabwe’s GDP grew by only 1.7% in 2024, largely due to drought and depressed commodity prices. Nonetheless, the IMF projects a rebound to 6.6% in 2025, driven by a stronger agricultural season, record-high gold prices, and rising remittance inflows.
The World Bank cautioned that the projected recovery remains “fragile.” It pointed to fiscal risks, mounting domestic arrears, low foreign reserves, and governance vulnerabilities as ongoing threats to stability.
The lender urged the government to accelerate reforms aimed at restoring macroeconomic stability, strengthening public financial management, and improving monetary and foreign exchange frameworks.
“Comprehensive reforms will be critical to rebuilding confidence and restoring Zimbabwe’s access to international financing,” the report said.
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