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Zimbabwe's Unsustainable Debt A Huge Threat To Economic Growth - Economist

Zimbabwe's Unsustainable Debt A Huge Threat To Economic Growth - Economist

A senior Economics lecturer at the University of Zimbabwe has unsustainable foreign debt, which was at around US$13 billion by September last year and now stands at US$19 billion, has for years affected Zimbabwe’s growth. 

Treasury statistics show that a huge proportion of the debt is owed to bilateral creditors, followed by the multilateral lenders such as the World Bank, African Development Bank and European Investment Bank, among others.

ZBC News cites Professor Albert Makochekanwa as saying the huge debt overhang is a real threat to economic growth and can be traced back to 1980. He said:

The external debt overhang for the nation dates back to 1980 and it has ballooned as government borrowed to facilitate growth while ensuring the growth of the economy.

It is not all that easy and this requires concerted efforts to the extent that everyone has to play the ball to ensure that such a huge external debt overhang is definitely extinguished.

Treasury statistics also reveal that over US$44 million was directed towards servicing external arrears between January and September this year.

Treasury is convinced that the huge debt overhang needs concerted efforts to facilitate economic growth.

The government has over the years been criticised for continuously borrowing even when the country is failing to service existing debts.

Former Finance Minister, Tendai Biti often tells Parliament that Treasury is borrowing millions of money without seeking consent from lawmakers as required by the law.

On the other hand, the Zimbabwe Coalition on Debt and Development (ZIMCODD) often criticises the government for not being transparent on debt. 

ZIMCODD further argues that most of the debt is due to corruption which goes unpunished and some analysts are pushing for a public debt audit. 

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11 Comments

Laggard 4 weeks ago

Ko makakadii kuendesa mari yacho isat yawanda. Madays a rigiyoni gono tanga tiine ma billions wani. Paingoda 20 billion dai so tisina stress


Blue 🔵 4 weeks ago

I told you before about this debt thing asi hamuna basa nazvo, you just want salaries increased.


Cable Guy 4 weeks ago

Well said sir

Asalif 4 weeks ago

so the workers are the ones who should pay the debt or the government , these debt should have been cleared in the first days of Chiadzwa. even pay with gold but you are paying air planes hire with bullion , they don't want to pay period

Mafirakureva 4 weeks ago

@Blue charity begins at home. Why don't you donate you earnings/business/profits to pay for the loans that ZANU saddled us with. Because POVO never got the benefits from these loans

Ryker 4 weeks ago

Pasi neZANU PF


Dave 4 weeks ago

ZimLivesMatter

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Dr Hercules 4 weeks ago

Its going to get even worse come election time. Gvt will spend every cent to guarantee victory in the coming election. Every cent borrowed will be used in electioneering


🙄🙄🙄🙄🙄🙄 4 weeks ago

🤔🤔 aaaaah imi 🤔🤨


Jimmy *machende* 4 weeks ago

Aimbowe masungisheni
Now chaachikwereti


Observer 4 weeks ago

Poor reporting.



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