Adesina’s final rallying cry to save Zim

STAFF WRITER

Outgoing African Development Bank (AfDB) president Dr. Akinwumi Adesina has made an impassioned plea to the international community to urgently support Zimbabwe in clearing its crippling debt arrears, warning that the country is “sitting on a debt time bomb” that could detonate decades of economic proDr.gress.

Adesina called on African nations, multilateral institutions, and global partners to close ranks behind Zimbabwe’s arrears clearance programme.

“We have done it for Somalia, we have done it for Sudan; we need US$2.6bn in bridge financing. Let’s get that done and support these folks who have worked so hard to come this far,” said.

Zimbabwe’s total debt has ballooned to an estimated US$21bn — a burden split between US$12.3bn in external debt and US$8.7bn in domestic liabilities. The accumulation has locked the country out of international capital markets, suffocated public service delivery, and eroded investor confidence.

External debt includes arrears of around US$3.2bn to multilateral lenders.

Of this, the AfDB is owed approximately US$676m, and roughly US$1.6bn is owed to the World Bank and the balance is owed to other international lenders.

Zimbabwe’s failure to service these obligations has resulted in the suspension of concessional funding.

Equally pressing is the bilateral debt of approximately US$6bn.

China leads as the largest bilateral lender with US$3.8bn, largely under infrastructure loans.

Paris Club members are owed US$4bn, while the remainder comes from countries like South Africa, Russia, and Middle Eastern states. Negotiations around these debts have frequently stalled over demands for structural reforms and transparency.

On the domestic front, Zimbabwe owes US$8.7bn — a mix of Treasury bills and bonds (US$4 bn), arrears to banks and pension funds (US$2.5bn), and debts to local contractors and suppliers (US$2.2bn).

This has not only strained local liquidity but also put pension payouts and social spending at risk.

Dr. Adesina’s proposed solution — US$2.6 bn in bridge financing — is designed to clear arrears and restore Zimbabwe’s access to concessional credit.

Without it, Zimbabwe’s options narrow dangerously, risking reliance on high-interest commercial debt or internal financing that further burdens its fragile economy.

“The consequences of inaction are dire,” Dr. Adesina warned. Persistent arrears will cripple Zimbabwe’s ability to fund essential services, escalate inflation, and deepen poverty.

“This isn’t just about numbers. It’s about people — millions of them — whose futures depend on the decisions made here,” he said.

Investor confidence, he added, is inseparable from fiscal credibility. “We must show Zimbabwe is serious about reform, but it also needs global solidarity to succeed. No country climbs out of a hole this deep without help.”

Finance Minister, Professor Mthuli Ncube, expressed cautious optimism.

He noted that the new AfDB President-elect, Dr. Sidi Ould Tah of Mauritania — who takes office on September 1 — is a seasoned development banker with whom he has worked closely in the past.

“Dr. Ould Tah understands our journey. We are hopeful that the momentum we’ve built under Dr. Adesina will continue with even greater urgency,” Ncube said.