External Debt under scrutiny

By Stanley James

Business Editor

EXPERTS have described efforts by the Second Republic to locally fund infrastructure development projects as key to easing external debt pressures.  

Strengthening debt governance in Zimbabwe in the context of the COVID-19 pandemic came under the spotlight during an annual multi-stakeholder debt conference held in Harare this Thursday.    

With concerns being raised over the effects of huge national debts on economic development, the government is, however, being commended for instituting measures to reduce dependency on external loans.   

” Financing of such projects using the local resources is the way forward though there are instances of foreign funding such a trend will ease foreign debt pressures,” said Victor Bhoroma, an economic analyst.      

“It is all about prudent corporate governance structures on how to effectively manage the debt that can unlock growth in the long term,” said Dr Lovemore Kadenge, an independent consultant.

“A huge external debt overhang is not good for the nation as it cripples the ability to run other strategic sectors so we hope tight budgets and reduced dependency on foreign funding can ease the pressures,” said Tirivangani Mutazu, a senior policy analyst debt management.

The Second Republic under the National Development Strategy One has reaffirmed its commitment to clear outstanding debts owed to multilateral creditors across the world.             

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