Finance Minister Mthuli Ncube has admitted that Zimbabwe’s mounting debt crisis is severely undermining efforts to stabilise the economy.
Speaking in Harare this week, Ncube said that the country’s ballooning debt, stagnant revenues, and shrinking fiscal space were the major issues.
Zimbabwe’s public debt has surged to over US$21 billion, nearly 90% of the country’s GDP. Major creditors include the World Bank, the African Development Bank, the Paris Club, and the non-Paris Club. Said Ncube (via Business Times):
If there is anything that keeps me awake at night as the Finance Minister it’s this debt crisis. The issue of debt is critical and albatross that we need to remove from our necks so that the economy can move forward. This issue occupies me for the most of my time [and it’s taking a toll on me].
What is more worrisome to me is that Zimbabwe’s average growth of around 6% is way lower than the interest rates growth.
This means that our debt will continue to be increasing. That’s why we have to restructure our debt to ensure that the debt does not accumulate.
The country’s growing debt burden limits the government’s ability to fund public services and stifles economic growth prospects.
To tackle the crisis, Ncube revealed plans to divest from underperforming State-Owned Enterprises (SOEs) to raise funds for debt repayment.
The Zimbabwean government has also engaged with international financiers through a high-level dialogue platform led by African Development Bank (AfDB) President Dr Akinwumi Adesina and former Mozambican President Joaquim Chissano.
However, these initiatives have faced challenges due to delays in implementing essential governance reforms, which are crucial for the arrears clearance and debt resolution agenda.
More: Pindula News
Kikikiki · 3 months ago
Here are the top 20 countries with the highest national debt:
1. *United States*: $30.89 trillion, 121.31% of GDP
2. *China*: $13.77 trillion, 76.98% of GDP
3. *Japan*: $12.78 trillion, 255.07% of GDP
4. *United Kingdom*: $3.14 trillion, 101.86% of GDP
5. *France*: $3.11 trillion, 111.8% of GDP
6. *Italy*: $2.91 trillion, 141.7% of GDP
7. *Germany*: $2.70 trillion, 66.1% of GDP
8. *India*: $2.64 trillion, 83.75% of GDP
9. *Canada*: $2.30 trillion, 107.38% of GDP
10. *Brazil*: $1.64 trillion, 85.33% of GDP
11. *Spain*: $1.58 trillion, 111.6% of GDP
12. *Australia*: $919.81 billion, 55.91% of GDP
13. *South Korea*: $900.63 billion, 53.8% of GDP
14. *Mexico*: $792.63 billion, 54.07% of GDP
15. *Singapore*: $784.45 billion, 167.5% of GDP
16. *Belgium*: $608.76 billion, 104.3% of GDP
17. *Argentina*: $534.03 billion, 84.69% of GDP
18. *Indonesia*: $529.38 billion, 40.14% of GDP
19. *Netherlands*: $505.93 billion, 50.1% of GDP
20. *Russia*: $423.91 billion, 18.89% of GDP
Note that these figures are subject to change and might not reflect the current situation ¹.
Antman · 3 months ago
Ok but those companies somehow can service theor debt eg America, Germany qnd Russia can service their debt and are in the capacity to keep on borrowing bit our Sovereign Zimbabwe can't pay the debt or service it.
Kikikiki · 3 months ago
Says whoooo
Kikikiki · 3 months ago
Zimbabwe can repay only power management
Kikikiki · 3 months ago
Zimbabwe is not in the top 20 countries with most debts in the world
Here are the top 20 countries with the highest national debt as of 2024:
1. *United States*: $30.89 trillion, 121.31% of GDP
2. *China*: $13.77 trillion, 76.98% of GDP
3. *Japan*: $12.78 trillion, 255.07% of GDP
4. *United Kingdom*: $3.14 trillion, 101.86% of GDP
5. *France*: $3.11 trillion, 111.8% of GDP
6. *Italy*: $2.91 trillion, 141.7% of GDP
7. *Germany*: $2.70 trillion, 66.1% of GDP
8. *India*: $2.64 trillion, 83.75% of GDP
9. *Canada*: $2.30 trillion, 107.38% of GDP
10. *Tunisia*: $1.91 trillion, 59.77% of GDP
11. *Brazil*: $1.64 trillion, 85.33% of GDP
12. *Spain*: $1.58 trillion, 111.6% of GDP
13. *Australia*: $919.81 billion, 55.91% of GDP
14. *South Korea*: $900.63 billion, 53.8% of GDP
15. *Mexico*: $792.63 billion, 54.07% of GDP
16. *Singapore*: $784.45 billion, 167.5% of GDP
17. *Belgium*: $608.76 billion, 104.3% of GDP
18. *Argentina*: $534.03 billion, 84.69% of GDP
19. *Indonesia*: $529.38 billion, 40.14% of GDP
20. *Netherlands*: $505.93 billion, 50.1% of GDP
These figures are based on the latest available data, which may not reflect the current situation. National debt can fluctuate constantly due to various economic factors kikikikiki then Mthuli is hiding on 21billion which is 90% countries Gdp. While countries like Belgium*: $608.76 billion, 104.3% of GDP pliz Zimbabweans we have been lied to everrry time
Corruptmore Looto · 3 months ago
Belgium can service its debt, it hasn't defaulted unlike Zim which defaulted way back in 1999. Much of that external debt is now mostly arrears not the actual amount borrowed
Corruptmore Looto · 3 months ago
Tunisia doesn't have that much GDP if you used an AI it must have hallucinated.
1