The African Development Bank Group has approved a US$4 million grant to support Zimbabwe’s arrears clearance and international re-engagement efforts under the Zimbabwe Arrears Clearance Dialogue Enhancement Project (ZACDEP).
In a statement yesterday, the AfDB stated the intention of the grant.
“The Grant is intended to support the Government of Zimbabwe in strengthening the institutional, technical and coordination capacities required to advance the arrears clearance and debt resolution process.
The initiative seeks to enhance structured dialogue among stakeholders involved in the arrears clearance and debt resolution platform, while also promoting reforms aimed at restoring macroeconomic stability and economic confidence,”the Bank added
According to the AfDB, the project will play a key role in accelerating Zimbabwe’s engagement with development partners and international financial institutions.
“The Zimbabwe Arrears Clearance Dialogue Enhancement Project is expected to improve coordination, policy dialogue and stakeholder engagement in support of Zimbabwe’s arrears clearance and debt resolution efforts.
The programme would facilitate consensus-building among stakeholders and strengthen the reform agenda necessary for economic recovery and sustainable growth,”AFDB noted
Zimbabwe’s public debt stood at approximately US$21.5 billion at the end of 2025, including US$11.7 billion in external debt, a situation that has continued to limit the country’s access to affordable international financing and investment flows.
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The Bank said resolving the debt burden remains critical for Zimbabwe’s long-term development prospects.
“Successful arrears clearance and debt resolution are essential for restoring access to concessional financing, improving investor confidence and supporting inclusive economic transformation,” the bank said.
The institution also reaffirmed its commitment to supporting Zimbabwe throughout the process.
“The African Development Bank remains committed to supporting Zimbabwe’s economic reform and re-engagement agenda through technical assistance, policy dialogue and strategic partnerships,” the statement said.
Zimbabwe’s arrears clearance and debt resolution process is being facilitated by AfDB President Akinwumi Adesina, who has repeatedly called for sustained engagement between Zimbabwe, creditors and development partners to secure a durable solution to the country’s debt challenge.
Government has in recent years intensified reform measures targeting fiscal discipline, governance reforms and economic restructuring as part of broader efforts to rebuild international confidence and attract fresh investment.
