AfDB Provides $135 Billion Debt Relief To Zimbabwe

Zimbabwe government can now breath a sigh of relief following the African Development Bank (AfDB)’s agreement to Help clearing the $13.5 Billion Debt it owns various global financial institutions.

AfDB has agreed this week to help Zimbabwe clear its $13.5 billion debt during a visit to Harare by the Abidjan-based lender’s president, Akinwumi Adesina

Meanwhile, the AfDB has also started releasing loans from a $1.5 billion fund to help Africa avert a looming food crisis fueled by Russia’s invasion of Ukraine.

Zimbabwe is one of the 38 countries set to benefit from the bank’s fund, which is known as the African Emergency Food Production Facility.

AfDB, President said during his visit that Zimbabwe President, Emmerson Mnangagwa had sought his assistance for the Southern Africa poverty stricken country to clear its external debt, which started accumulating after the late Robert Mugabe’s administration defaulted.

“I believe that ordinary Zimbabweans, have suffered long enough. You have a country, a beautiful country in which you now have more than 40 percent of the population that is living in extreme poverty.

“So, Zimbabwe cannot run up a hill for its economic recovery and growth and prosperity if it’s carrying a backpack of sand,”  said.

AfDB and Zimbabwe are looking for ways Harare can get access to international financial money while the debt is being settled over a long period

And elsewhere in a related development, a scheduled International Monetary Fund (IMF) Executive Board Meeting has shown that Malawi is not among the countries to be discussed by the Bretton Woods institution next week.

The development casts a serious shadow of doubt on the possibility of the IMF Executive Board approving Malawi’s new Extended Credit Facility (ECF) programme.