Zimbabwe repays US$176 million in external debt

Published: 2 hours ago

The Zimbabwean government has made notable progress in repaying its external debt, with a total of US$176.28 million paid during the first six months of 2025, according to data released by the Ministry of Finance and Economic Development.

The payments reflect a continued commitment by the Treasury to manage the country's sizeable external debt burden, despite prevailing economic challenges. The repayments were allocated across several categories, including US$93.72 million towards the active debt portfolio, US$79.75 million for legacy debt, and US$2.81 million in token payments made to International Financial Institutions and 16 Paris Club bilateral creditors.

These disbursements are part of Zimbabwe's broader external debt service obligations for 2025, which are projected to reach US$416.2 million. This figure includes approximately US$374.58 million in principal repayments and US$41.62 million in interest.

Zimbabwe's external debt stock, estimated at US$12.3 billion as of late 2024, is largely owed to bilateral and multilateral creditors. Debt servicing remains a central pillar of the government's fiscal strategy, aimed at restoring credibility with international lenders and positioning the country for future access to external finance.

Economists and policy analysts view the payments as a cautiously optimistic sign. Despite enduring currency instability, limited access to foreign exchange, and an uncertain global economic climate, Zimbabwe's adherence to debt service commitments demonstrates a willingness to re-engage with the international financial system.

However, experts also warn that the repayments, while symbolically important, are not sufficient on their own to resolve the country's long-standing debt crisis. Calls are growing for the government to step up negotiations with creditors for debt restructuring, relief, or concessional financing, especially as fiscal space remains constrained by sluggish revenue growth and pressing domestic needs.

The debt payments come at a time when the government is also seeking to accelerate economic reforms aimed at stabilising the macroeconomic environment. Sustained engagement with lenders and reforms to improve transparency and fiscal management are expected to be crucial in determining Zimbabwe's financial trajectory in the coming years.

As the second half of 2025 unfolds, authorities will face the dual challenge of meeting international obligations while investing in sectors critical to long-term recovery and growth, including healthcare, education, and infrastructure.
- fingaz

Tags: Debt,