Zimbabwe’s Debt Crisis: A Growing Concern
Recent reports from the International Monetary Fund (IMF) and the World Bank have revealed that Zimbabwe’s public debt has reached an alarming figure of US$23.3 billion, significantly higher than the government’s reported amount of US$21 billion at the end of last year. This discrepancy highlights a growing concern about the accuracy of official data and the severity of the country’s financial challenges.
The World Bank’s latest economic update states that Zimbabwe is still in a state of debt distress, with high and unsustainable public debt that limits its access to international financing. According to the report, total public debt reached US$23.2 billion in 2024, which accounts for 72.9% of the country’s GDP. This figure aligns with the IMF’s findings in its 2025 Article IV Consultation Report, which also highlighted the same level of debt.
The African Export–Import Bank had previously noted that Zimbabwe’s external debt was much higher than what was officially reported. The country has been accumulating arrears to external creditors for over two decades due to its inability to repay loans. As a result, Zimbabwe is unable to access loans from key institutions like the World Bank and the IMF, which has been a major obstacle to economic growth.
Key Findings from the IMF Report
According to the IMF, total public and publicly guaranteed debt stood at US$23.3 billion (72.9% of GDP) at the end of 2024. Of this, external debt amounted to US$16.7 billion (52.5% of GDP). The country has been accumulating external arrears to its official creditors since the early 2000s, estimated at US$7.4 billion (23.2% of GDP).
In addition, the government has recently started accumulating arrears to external commercial creditors, estimated at US$47.4 million at the end of 2024 (0.1% of GDP). It has also suspended servicing some of its domestic debt obligations, amounting to US$425 million (0.8% of GDP) in 2025.
These figures underscore the severity of Zimbabwe’s debt crisis and the challenges it faces in stabilizing its economy. The IMF has pointed out that the government’s economic policies have not been sufficient to address the situation effectively.
Political and Economic Challenges
Since President Emmerson Mnangagwa took office in 2017, he has been advocating for debt relief, but with limited success. His reluctance to implement meaningful economic and political reforms has continued to hinder progress in debt relief negotiations.
The ongoing dispute over the exact level of Zimbabwe’s indebtedness could create further complications for those working to find solutions to the crisis. Credibility and transparency are essential in restoring confidence in the country’s financial system.
Impact on the Economy
Zimbabwe’s debt crisis has had a significant impact on its economy, limiting access to international financing and hindering growth. The accumulation of arrears has made it difficult for the country to secure new loans or investments, which are crucial for development and stability.
As the situation continues to evolve, it is clear that addressing the debt issue will require a comprehensive approach that includes both short-term measures and long-term reforms. Without decisive action, Zimbabwe may face prolonged economic stagnation and increased vulnerability to external shocks.