Zimbabwe’s economy remains in a state of debt distress, with public borrowing now at unsustainable levels that are severely restricting access to international financing, according to a new World Bank report.
The multilateral lender revealed that Zimbabwe’s total public debt has surged to US$23.3 billion, which is US$2.2 billion higher than figures recently reported by the Treasury. The International Monetary Fund (IMF), in its latest Article IV Consultation, confirmed the same figure — casting further doubt on the government’s official estimate of US$21 billion.
“Zimbabwe continues to be in debt distress, with high and unsustainable public debt that limits its access to international financing,” the World Bank said. The report noted that total public debt now stands at 72.9% of GDP, with substantial arrears owed to key international lenders including the World Bank, the African Development Bank (AfDB), and the European Investment Bank (EIB).
Zimbabwe has been in default on external debt repayments since 2000, following the controversial land reform programme introduced by the late President Robert Mugabe. The country’s largest Paris Club creditors — Germany, France, the United Kingdom, Japan, and the United States — collectively account for 74% of Zimbabwe’s Paris Club debt, estimated at US$2.9 billion.
The World Bank identified persistent structural challenges — including macroeconomic instability, low agricultural productivity, recurrent droughts, and widening inequality — as key constraints on poverty reduction and sustainable growth.
Despite these headwinds, the report acknowledged Zimbabwe’s long-term potential, citing a highly educated workforce, abundant natural resources, and incremental policy reforms aimed at restoring investor confidence.
Economic growth in 2024 slowed to 1.7%, weighed down by severe drought and declining global commodity prices. However, the IMF projects a rebound of 6.6% in 2025, buoyed by a stronger agricultural season, high gold prices, and sustained remittance inflows from the diaspora.
The World Bank cautioned that Zimbabwe’s recovery remains “fragile,” underscoring ongoing fiscal risks, domestic arrears, limited foreign reserves, and governance weaknesses. It urged authorities to implement deeper reforms to stabilise the macroeconomic environment, strengthen public financial management systems, and improve monetary and foreign exchange policies.
Source: Associated Press, World Bank, IMF
