The debt has been driven by years of borrowing, and its interest now outweighs the country’s economic growth.

Speaking to Business Times on the sidelines of the launch of the National Venture Capital Company of Zimbabwe (NVCCZ) event last week, Finance Minister Mthuli Ncube said the government has begun identifying assets for sale as part of efforts to address the debt. He said:

We are looking to see which assets we should target. It’s a work in progress. When opportunities arise, we will swing on the right assets and we’ll be able to allow ourselves to dispose of them.

What is more worrisome to me is that Zimbabwe’s average growth of around 6% is way lower than the interest rate 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.

Ncube urged stakeholders from various sectors—such as the private sector, civil society, and development partners—to view the debt crisis as a national issue, not just a government problem.

Last year, the government launched high-level dialogue platforms led by AfDB President Akinwumi Adesina and former Mozambican President Joaquim Chissano.

However, delays in implementing key governance reforms, necessary for clearing arrears and resolving debt, have slowed progress.

Economist Gift Mugano warned that the country’s rising debt, combined with its limited ability to repay, could lead to a full fiscal crisis if not addressed quickly. He said:

The government’s slow pace in addressing governance reforms risks further isolating Zimbabwe from international financial support.

The rising debt levels demand immediate restructuring or forgiveness to avoid economic catastrophe.