NALEDI DUBE
The Zimbabwe Coalition on Debt and Development (ZIMCODD) has called for urgent fiscal and public finance reforms, saying Zimbabwe’s domestic debt, estimated at nearly US$10 billion, requires home-grown solutions to restore fiscal stability and support sustainable economic growth.
Speaking during a press conference at Urban Lifestyles Hotel in Masvingo on Friday following the 8th Zimbabwe Annual Debt Conference, ZIMCODD Executive Director John Maketo said the country’s rising domestic debt, coupled with public and publicly guaranteed debt estimated at between US$21 billion and US$23 billion, continues to constrain economic transformation and reduce government’s capacity to deliver essential public services.
Maketo said delegates resolved that Zimbabwe’s domestic debt should be addressed through comprehensive fiscal reforms, stronger public financial management and improved accountability.
“Weak public financial management, corruption, procurement irregularities, exchange-rate distortions, overpricing of public contracts and the accumulation of arrears continue to worsen domestic indebtedness. Effective debt management requires stronger fiscal discipline, productive borrowing and enhanced parliamentary oversight,” said Maketo.
He said delegates also noted that Zimbabwe’s debt challenges are unfolding against a global backdrop of climate change, armed conflicts, trade wars, geopolitical fragmentation and high global interest rates, which continue to increase debt vulnerabilities across Africa.
Maketo said participants expressed concern that climate finance is still being provided mainly through loans rather than grants, placing an additional burden on countries already struggling with unsustainable debt.
The conference further heard that debt servicing continues to crowd out investment in health, education, infrastructure, social protection and local government services, while disproportionately affecting women, youth, persons with disabilities and other vulnerable communities.
Delegates also described debt as a gender justice issue, noting that women bear a disproportionate burden when investment in public services declines, resulting in increased unpaid care work and heightened vulnerability to gender-based violence.
They also highlighted the unique challenges facing women in mining communities, where limited investment has constrained economic opportunities.
Among the resolutions adopted, delegates called on the government to eliminate corruption and financial leakages, strengthen debt transparency, improve parliamentary oversight, combat illicit financial flows, modernise tax administration and ensure future borrowing is directed towards productive investments capable of generating economic returns.
Reading the conference declaration, ZIMCODD Board Chairperson Rosewitta Katsande said delegates remained committed to advancing debt justice through transparent and accountable debt governance.
“We reaffirm that debt justice is indispensable to national sovereignty, democratic governance, human dignity and sustainable development. We call upon Government, Parliament, development partners, civil society, academia, the private sector and citizens to work collectively in implementing this declaration and accelerate debt resolution in a manner that safeguards human rights, restores public trust, expands fiscal space and advances inclusive and sustainable development for present and future generations,” said Katsande.