Uncovering Zimbabwe’s debt
Executive summary and introduction For the last decade the Zimbabwean government has been in default on most of its debt owed to the rest of the world, currently estimated to be around US$7 billion. This debt dates primarily from loans made in the 1980s and 1990s by private lenders such as banks; foreign governments such as France, Germany and the UK; and multilateral institutions like the World Bank, African Development Bank and International Monetary Fund (IMF). Discussions both within Zimbabwe and amongst creditors have begun on what should happen with this debt. The Zimbabwean government has created an Aid and Debt Management Office which is due to start reconciling debt figures with creditors. In this report we argue that in order to move towards a just and positive resolution to this crisis the origin of Zimbabwe’s debt must be investigated. The legitimacy of the debt needs to be established by examining whether these loans genuinely benefited the Zimbabwean people. In doing so, lessons can be learned about the appropriate role of foreign borrowing in Zimbabwe’s future, and the transparency and accountability of the country’s financial management can be increased. This report is a contribution to the process of working out the impact of loans and debt on the Zimbabwean people.
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