Zimbabwe is seeking US$2.6 billion in bridge financing to settle its arrears with international creditors, according to the African Development Bank (AfDB).

Finance, Economic Development and Investment Promotion Minister Mthuli Ncube is heading Zimbabwe’s delegation at the IMF and World Bank Spring Meetings in Washington, where he is pushing for a new Staff Monitored Programme (SMP) with the IMF. The AfDB said in a statement on Wednesday:

The government of Zimbabwe has proposed a plan to secure bridge financing of $2.6 billion to clear arrears to international financial institutions.

An SMP is an arrangement between a country and the IMF under which the country’s economic policies and reforms are monitored by IMF staff — but without any financial assistance from the Fund.

Unlike other IMF programmes, an SMP does not involve lending. It is purely a form of technical support, to help countries build credibility with international creditors — often seen as a vital first step towards debt relief.

Zimbabwe currently owes foreign creditors US$21 billion, with a significant portion of that made up of arrears.

These arrears block access to low-cost loans from institutions such as the World Bank and AfDB — funding that other countries often rely on for major infrastructure projects like roads and railways.

The bridge financing Zimbabwe is seeking would be a temporary loan used to clear these overdue payments.

Once the US$2.6 billion in arrears is settled through this funding, Zimbabwe would move closer to becoming eligible for concessional loans from global financial institutions.

The Ministry of Finance says Zimbabwe is nearing agreement on a new SMP with the IMF, saying:

Zimbabwe has reached a concession with the IMF on a Staff Monitored Programme, paving the way for economic development and progress towards Vision 2030.

A roundtable on Zimbabwe’s arrears clearance and debt resolution was held on the sidelines of the Washington meetings.

The meeting was chaired by AfDB President Dr Akinwumi Adesina, who is leading Zimbabwe’s debt resolution efforts.

Also in attendance were IMF African Department Director Abebe Selassie, World Bank Vice President for Eastern and Southern Africa Ndiamé Diop, and representatives from France, the UK, Germany, the Netherlands, SADC, along with facilitator Joaquim Chissano.

At the meeting, Dr Adesina said Zimbabwe had made “a lot of progress, against all odds,” and noted that the request for bridge financing could be considered by the end of the year.

However, he warned that recent developments may undermine that progress — particularly Zimbabwe’s new Private Voluntary Organisations (PVO) Amendment Bill. Said Adesina:

The recent assent to the PVO Bill is a significant setback and poses a risk to the arrears clearance and debt resolution process.

The Zimbabwean government has defended the new law, saying it is necessary to prevent money laundering and to promote security and accountability.

However, critics argue that it expands state control over NGOs and stifles civil society.

In response to the law’s enactment, the European Union has suspended support for certain governance programmes.

More: newZWire