HARARE, May 18 (Xinhua) -- The African Development Bank (AfDB) Group has approved a 4-million-U.S.-dollar grant to support Zimbabwe's debt clearance efforts and re-engagement with the international financial community.
In a statement on Monday, the AfDB said the approval marks a critical step in Zimbabwe's re-engagement. The funding will finance Zimbabwe's Arrears Clearance Dialogue Enhancement Project (ZACDEP), which is aimed at strengthening dialogue and reforms needed to advance the country's arrears clearance process.
"To be implemented by the Zimbabwean government over a 36-month period (June 2026-May 2029), ZACDEP aims to strengthen dialogue and build consensus on the prerequisites for implementing an arrears clearance roadmap," the AfDB said.
The bank added that the grant builds on the Support for Arrears Clearance and Governance Enhancement project approved in 2022, which established a structured platform for the Zimbabwean government and various stakeholders to sustain dialogue on debt resolution.
According to the AfDB, as of the end of 2025, Zimbabwe's public debt stood at approximately 21.5 billion U.S. dollars, including 11.7 billion in external debt, of which about 7.7 billion is owed to multilateral and bilateral creditors.
The AfDB noted that this burden has severely constrained the country's access to external financing, adding that clearing arrears is critical to unlocking urgently needed development funding.
The new financing facility focuses on enhancing debt dialogue and management systems, while incorporating a gender-responsive approach to support women and youth disproportionately affected by debt distress.
The grant follows the International Monetary Fund Staff-Monitored Program approved in April, which the AfDB described as a key step toward broader debt resolution reflecting progress in Zimbabwe's macroeconomic stabilization efforts. ■