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Zimbabwe's Mounting Debt Crisis Is A Barrier To Economic Recovery, Says Mthuli Ncube

3 months agoFri, 13 Dec 2024 13:11:59 GMT
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Zimbabwe's Mounting Debt Crisis Is A Barrier To Economic Recovery, Says Mthuli Ncube

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.

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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

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49 Comments

Shava · 3 months ago
Prof makati 2% ndeye kupedza zvipande... zvadini zvino
Spellchecker · 3 months ago
Spellchecker
Tintin · 3 months ago
what happened to the surplus you were always barking about 🙄
Anonymous · 3 months ago
Nhai iwe Turi, unofunga kuti hatisikuzviziva ere kuti muri a puppet government makatengesa nyika ku China ne Russia muchipihwa pfuti ne military training and you promised to keep us docile and that's the actual reason why you overthrew Mugabe. Its not because you were nice but China and Russia yanga yoisa pressure?? Nhasi uno murikutidzvanyirira kuti China ne Russia vatore zvinhu zvose pasina anorwisa? Munoti systematic oppression yenyu hatiioni here? Zvamurikuita pa border zvinonyadzisira zvakadero madii kubva matora mari yacho and pay the debt since you are so desperate kkk by the way this debt was manufactured to subjugate povho just like you are taking their things muchiisa tax ye 40% to manufacture criminality and tax aversion kuti mutibire in the name of law. Pamakaunza Zig maiti taisazviona here kuti it was a plot to create instability kuunza mari yakashata kudarika matissue e newspaper, nekuburitsa kamutakura ke ghoridhe, you purposefully designed that whole project to fail. Ikozvino ma aqua nemabenz arikupihwa vanhu how, iwe uchiti tinezvikwereti? Zvipatara hazvina mushini asi you give cars kuchembere dzinofongorera vana, chii ichocho? Yamakakwereta yacho makaishandisei? VAT murikuiitisei? Mari yeku mining urikuindepi zvedizvedi? City council mari irikuindepi parking arimakomba ekuti you have to guess kuti iparking here or not, mastreet lights hakuna. Ikozvino fuel muriku diluter cutting fuel like drug dealers and Turi your fuel is rubbish profit yacho irikumboindepi? Taurai chokwadi vakomana imi kuti makatengesa nyika nekuda kudya mega nhasi mavekutaura zvikwereti zvisipo kuti mutidzvanyirire kuitira kuti China ne Russia vaite madiro jera wachera neupfumi hwedu imimakatitsika huro. Thats why you are so quite to demolish dzimba dzevanhu than building systems that empower us. Hondo yechimurenga is a scam because those that truly suffered nazvino Havana chiro imi muchidya nekutsapfanya and being cruel and oppressive because you know that you have nothing to offer ku povho and that you are running on borrowed time because nyika makachekeresa kare makaromba masimba nepfuti from China and Russia and Chibairo chacho ndisu. That's why muchiba mabiro amunoita nekudzvinyira because you know kuti soon muzimba acha realizer kuti Zimbabwe is still a colony under Zanupf management and different owners.
Anonymous · 3 months ago
Nhai iwe Turi, unofunga kuti hatisikuzviziva ere kuti muri a puppet government makatengesa nyika ku China ne Russia muchipihwa pfuti ne military training and you promised to keep us docile and that's the actual reason why you overthrew Mugabe. Its not because you were nice but China and Russia yanga yoisa pressure?? Nhasi uno murikutidzvanyirira kuti China ne Russia vatore zvinhu zvose pasina anorwisa? Munoti systematic oppression yenyu hatiioni here? Zvamurikuita pa border zvinonyadzisira zvakadero madii kubva matora mari yacho and pay the debt since you are so desperate kkk by the way this debt was manufactured to subjugate povho just like you are taking their things muchiisa tax ye 40% to manufacture criminality and tax aversion kuti mutibire in the name of law. Pamakaunza Zig maiti taisazviona here kuti it was a plot to create instability kuunza mari yakashata kudarika matissue e newspaper, nekuburitsa kamutakura ke ghoridhe, you purposefully designed that whole project to fail. Ikozvino ma aqua nemabenz arikupihwa vanhu how, iwe uchiti tinezvikwereti? Zvipatara hazvina mushini asi you give cars kuchembere dzinofongorera vana, chii ichocho? Yamakakwereta yacho makaishandisei? VAT murikuiitisei? Mari yeku mining urikuindepi zvedizvedi? City council mari irikuindepi parking arimakomba ekuti you have to guess kuti iparking here or not, mastreet lights hakuna. Ikozvino fuel muriku diluter cutting fuel like drug dealers and Turi your fuel is rubbish profit yacho irikumboindepi? Taurai chokwadi vakomana imi kuti makatengesa nyika nekuda kudya mega nhasi mavekutaura zvikwereti zvisipo kuti mutidzvanyirire kuitira kuti China ne Russia vaite madiro jera wachera neupfumi hwedu imimakatitsika huro. Thats why you are so quite to demolish dzimba dzevanhu than building systems that empower us. Hondo yechimurenga is a scam because those that truly suffered nazvino Havana chiro imi muchidya nekutsapfanya and being cruel and oppressive because you know that you have nothing to offer ku povho and that you are running on borrowed time because nyika makachekeresa kare makaromba masimba nepfuti from China and Russia and Chibairo chacho ndisu. That's why muchiba mabiro amunoita nekudzvinyira because you know kuti soon muzimba acha realizer kuti Zimbabwe is still a colony under Zanupf management and different owners.
progress · 3 months ago
usatombokwenya musoro zvako ,maizviti mune surplus maybe hamuchazivi zvazvinoreva,takapfuura target muchaita plan handiti kungwaraka kujutaa vanhu nenhemaa
𝕮𝖆𝖓𝖉𝖎𝖉 𝕿𝖆𝖑𝖐 · 3 months ago
𝐁𝐮𝐭 𝐬𝐮𝐫𝐩𝐫𝐢𝐬𝐢𝐧𝐠𝐥𝐲 𝐌𝐧𝐚𝐧𝐠𝐚𝐠𝐰𝐚 𝐚𝐧𝐝 𝐂𝐡𝐢𝐯𝐡𝐚𝐲𝐨 𝐚𝐫𝐞 𝐦𝐨𝐫𝐞 𝐫𝐢𝐜𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐭𝐡𝐞 𝐬𝐭𝐚𝐭𝐞
Antman · 3 months ago
We can win through agriculture. By agriculture I mean real farming not EDs farming of using tax payers money and make no profit. Im talking farming where a farmer is in business qnd makes profits and pays back ****s and other expenses from produce proceeds
Antman · 3 months ago
Loans. L.o.a.n.s
Corruptmore Looto · 3 months ago
This is a very good but the regime is unashamedly allergic to good ideas which benefit the economy and people.
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.
laugh emoji1
Dhamu · 3 months ago
Musatibata kumeso.Mari dzose dzamunotengerana makumotika,maAllawance,sewe Mtuli unogara muhotera mumba mako.Imarii dzaunosainira dzema selfish gains.Mtuli chako is bookish knowledge, practically zero.U are not doing us justice at all
Hard Mashona · 3 months ago
Haaa Mthuli should step aside and let someone takeover. All he knows is to widen the tax base for the government but the economy is still struggling
Antman · 3 months ago
As lonh he is sleeping luxuriously and driving latest set of wheels he is all good the rest is just pushing and talking to seem as if he is working
Boris · 3 months ago
Kuba munogona kubhadhara zvikwereti hamugoni goridhe muri kuendesa mhiri nelithium mari muchityorera muhomwe
ED pfocho · 3 months ago
Kukwenya musana uko ukuita semunhu anogaya stereki
AFRICAN · 3 months ago
Homwe dzenyu dzakanyanya kureba nekudzika kani Prof, ku Cowdry Park maigadzirisa masewage, maroads nekuisa Wifi pa campaigning muchitaridza kurongeka wani, handidzo mari dzedu here.
👀👀 · 3 months ago
l listened to his budget and l have been following his speeches,and now he is telling a different story,vanhu vanonyepa ivava
yyy · 3 months ago
kana zvaramba kandai pasi mdhara kuuye mumwe tione kkkkk musamwe poison nekunyara vanhu
Legend · 3 months ago
Mr Minister you mislead us with your nonsense economics according to my own understanding you are not professional you are still a student
1
kkkj · 3 months ago
ko surplus yakaendepi ASI ndiyo yamurikutengesa mota nedzimba kani
Anonymous · 3 months ago
what a surprise Mr Minister...have you just realised that Zimbabwe is in debt??? No worries, the ZIG will sort it.
laugh emoji1
Best Builders 0777980648 · 3 months ago
Ko nzou makazodii ko urayaika tidye nyama
Hoyoo · 3 months ago
wonder kut oxygen tax inouya when🤣
mono · 3 months ago
it's around the corner maybe vanoti carbon emissions tax kkk
zelensky · 3 months ago
two issues to be addressed.remove the elephant in the room.number two desist from the policy of promoting vendors they dntt pay tax
c · 3 months ago
that's why vakuda tax kuma church
WOMAN · 3 months ago
Maimboti zvakarongekaaaa wani mmm.Musanyanya kuisa mari muhomwe, do away with several duplicated top posts in government.Haa austerity measures dzashaya basa apa.
JACK · 3 months ago
Ko the much chanted Look East policy yaramba here.Hey guys stop giving yourself and top guys maloni for house.Just imagine one minister getting USD350k.Stopping buying expensive cars.Even the lenders would not want to associate muiita over spending.Umwe aigara muhotera for long time on gvnt expenses.
Sir African · 3 months ago
Az long as Zanu pf is at the helm the economy will die an unnatural death
😁😁 · 3 months ago
Zi ga nwa re nhema......
Mp · 3 months ago
only last you fool you said the country will have growth you monkeys
Anonymous · 3 months ago
What did this guy say when he started? Six months and all would be good? How does selling state assets to the Matepe Fund resolve our crisis?
you are a clown minister · 3 months ago
stop corruption where govt pays 10 times more than the actual price for goods, and ministers like yourself get a kick-back from the person that wins tenders... stop buying luxury vehicles and houses for useless people solely to keep zanu in power .. the list goes on and on and its really simple to solve you dimwit minister of finance
007 · 3 months ago
pane dt organization irii kuitwaa over covered than other meaningful sectors in the government.yet irii kuchengetedza bato.motaa dzachoo mari etc.. monyangaritsaa henyu vanhu tinenge tichikuzivai nekukuonai hedu.... professor bdai pachena which under performing sector yamurii kda kuite suspend
chipoko · 3 months ago
Clueless minister
xxc · 3 months ago
Zimbabwe has a lot of resources, of you are seriously concerned about the credit you shall rescue Zimbabwe
Misogynist · 3 months ago
ho

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