Story by Davison Vandira, Business Reporter
ECONOMIC analysts have been impressed by the Second Republic’s economic diplomacy with regards to the debt clearance strategy saying it is critical for sustainable development.
Zimbabwe’s debt overhang had become an albatross to economic development after creating a high risk profile for the country that led to harmful financial isolation.
However, the advent of the Second Republic ushered in the economic re-engagement agenda which among other things prioritised debt clearance as a precursor to sustainable economic reconstruction towards the all inclusive vision 2030.
This week, fiscal authorities will hold a high level engagement with independent emissaries chosen by the government to spearhead the arrears clearance plan which economic analysts believe is the right call.
“The country’s debt is currently unsustainable for any meaningful development to take place hence it is critical that the government has undertaken to extinguish all the country’s debts,” said Mr Batanai Matsika, an Investment Analyst.
“We are very delighted with the progress, the government is working towards clearing the country’s debts to open up the economy for more investment options,” said Mr Persistence Gwanyanya an Economist.
Over the past five years, the country’s development journey has been funded largely by domestic capital, hence extinguishing debts will broaden Zimbabwe’s working capital base.