UK AND FRANCE AGREE TO CO-CHAIR ZIMBABWE’S NEW DEBT CONSULTATIVE GROUP IN MAJOR BOOST FOR ARREARS CLEARANCE
By Gabriel Manyati
Zimbabwe has secured significant diplomatic backing for its long-running efforts to resolve external debt arrears after the United Kingdom and France agreed to co-chair a newly established Debt Consultative Group under the country’s Structured Dialogue Platform.
The Debt Consultative Group will focus on the Arrears Clearance and Debt Restructuring roadmap. It aims to provide a transparent, predictable and institutionalised platform for engaging creditors, addressing the complexity of bilateral and plurilateral negotiations, and clarifying the sequencing of the process. This runs from the current International Monetary Fund Staff-Monitored Programme through arrears clearance and debt restructuring towards an Upper Credit Tranche programme and comprehensive debt treatment.
According to an official document from the Zimbabwe Public Debt Management Office in the Ministry of Finance, Economic Development and Investment Promotion, published in July 2026: “France and the United Kingdom have agreed to co-chair the DCG together with the Ministry of Finance, Economic Development and Investment Promotion and the Reserve Bank of Zimbabwe, to help operationalise this Group and maintain coherence across the overall reform and engagement architecture. The co-chairs will work together closely, sharing leadership toward the AC&DR Process objectives, with the role of the co-chairs centred on convening and coordination of support for dialogue process.”
The Ministry of Finance views the arrangement as crucial for restoring confidence in Zimbabwe’s economic reform agenda. The group will coordinate engagement with creditors, support implementation of the 10-month IMF Staff-Monitored Programme and advance the clearance of approximately US$2.7 billion in arrears owed to three major international financial institutions.
These comprise about US$1.5 billion to the World Bank Group, US$740 million to the African Development Bank Group and US$435 million to the European Investment Bank.
Clearing these arrears is regarded as an essential prerequisite for obtaining an IMF financing programme and unlocking access to concessional development financing. This would allow Zimbabwe to move into the final stage of comprehensive restructuring of bilateral debt to restore public debt sustainability.
The Structured Dialogue Platform was established by President Emmerson Mnangagwa in December 2022 to institutionalise engagement with creditors, development partners and other stakeholders on the economic and governance reforms underpinning the arrears clearance process. It is supported by sector working groups covering economic growth and stability, governance, and land tenure reforms.
The IMF Staff-Monitored Programme, which became effective in early 2026 following a staff-level agreement and subsequent management approval, is designed to bolster macroeconomic stability, provide a track record of policy implementation and serve as a critical step towards arrears clearance. Official partners view successful implementation of the programme as a prerequisite for concrete financial support.
The Debt Consultative Group’s membership will be inclusive and representative of all key stakeholders. Its inaugural meeting is expected in late August 2026, with subsequent meetings timed around key milestones such as IMF programme reviews, bilateral consultations and high-level international engagements.
Zimbabwe’s total public and publicly guaranteed debt stood at US$21.8 billion at the end of 2025, equivalent to 37.4 per cent of gross domestic product. External debt accounts for just over half of the total. The country has been accumulating external arrears since the early 2000s, limiting access to concessional financing needed to support the National Development Strategy 2 for 2026 to 2030 and the broader Vision 2030 goal of becoming an upper-middle-income economy.
The involvement of the United Kingdom and France, both Paris Club members and longstanding creditors, is seen as a diplomatic boost that could strengthen coordination with other international institutions including the African Development Bank, the World Bank, the IMF and the Paris Club. Government remains committed to implementing the reforms under the Structured Dialogue Platform and is exploring financing options, including official concessional and semi-concessional support as well as arrangements that leverage national assets, to clear the arrears.
Observers note that sustained progress on macroeconomic stabilisation, governance reforms and land-related issues will remain essential to convert the new consultative mechanism into tangible advances on debt resolution and renewed access to international financing.