Finance Minister Mthuli Ncube was questioned this week about discrepancies in Zimbabwe’s public debt figures during a meeting on the sidelines of the African Development Bank annual meetings in Nairobi, Kenya. Creditors expressed concerns over conflicting debt reports presented by Ncube, with differences amounting to $2.7 billion from previous statements.
In the meeting, Ncube reported that Zimbabwe’s total public and publicly guaranteed debt stood at $19.2 billion, broken down into $13 billion in external debt and $6.2 billion in domestic debt. He highlighted that Zimbabwe is in a state of debt distress, primarily due to $6.7 billion in accumulated external debt arrears.
However, creditor representatives pointed out that during last month’s World Bank/International Monetary Fund spring meetings in Washington, Ncube had reported a total public debt of $21.9 billion. This discrepancy raised doubts among the creditors about the accuracy of the figures provided.
Stephane Rey, the Swiss Ambassador to Zimbabwe, Zambia, and Malawi, mentioned the confusion arising from the inconsistent debt figures and suggested that a clearer update in June might help to resolve the discrepancies.
This issue of disputed figures is not new, as there have been previous instances where Zimbabwe’s fiscal authorities faced challenges over reported public debt figures. In November 2021, Afreximbank disclosed that it had disbursed a total of $13 billion to Zimbabwe, contrary to the $9 billion previously stated by monetary authorities.
Melte Knudsen, an executive director on the board of the African Development Bank representing several countries, emphasized the importance of maintaining transparency with international financial institutions and donors. She urged the Zimbabwean government to remain forthcoming with its debt figures as it moves toward signing a Staff Monitored Programme (SMP) in the coming months.
Furthermore, Knudsen highlighted the need for the government to address concerns from civil society organizations regarding proposed legislation that could impact their operations. She also welcomed the government’s recent invitation to farmers protected under Bilateral Investment Protection and Promotion Agreements to apply for compensation, advocating for prompt payment initiation.
Andrew Bvumbe, head of the Public Debt Management Office, assured that the government is committed to transparency, with debt figures published biannually in the Annual Bulletin Transparency Report. He confirmed that the details of the domestic debt would be further explained in the 2023 Public Debt Budget scheduled for publication in December.
Source: Newsday
