AT last week’s African Development Bank (AfDB) meetings, it was revealed that Finance, Economic Development, and Investment Promotion minister Mthuli Ncube potentially understated Zimbabwe’s public debt by as much US$2,7 billion.
During one of the side meetings on Zimbabwe’s debt at the AfDB event, held in Kenya, Ncube revealed that the country’s total debt position was US$19,2 billion.
However, one of the creditors present asked why this figure was different from the US$21,9 billion Ncube mentioned at the World Bank/International Monetary Fund (IMF) meetings in April.
This is not the first time monetary or fiscal authorities have been challenged over the reported public debt figures by creditors.
Back in November 2021, the African Export–Import Bank (Afreximbank) had revealed that they had made total disbursements to Zimbabwe of US$13 billion, after monetary authorities had said it was US$9 billion. This all occurred at the commissioning works at the construction of Afreximbank’s local headquarters to be located in Harare. That is a discrepancy of US$4 billion.
Imagine lying right in front of the creditor, like that and at last week’s AfDB annual meetings, Ncube potentially did the same.
So, all we ask is, why? Why lie?
Because this means that the Treasury magically knocked off US$2,7 billion in money it owes creditors at a time when it is seeking debt resolution or reprieve.
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If we cannot be honest about the challenges that are facing the country, how can we make any improvements?
In Zimbabwe, the ZANU-PF run government has always dismissed criticism as being unpatriotic and now has a law which it can weaponize to deal with such.
Yet, no one told Ncube to lie on public platforms such as the World Bank/IMF Spring Meeting or last week’s annual AfDB event.
He went up there and gave contradictory figures all by himself.
If we are serious about solving the many crises facing the country, we must be honest with the economy’s state to deal with the challenges, otherwise, we will not go anywhere.
Honesty brings trust, and that is something we are lacking in spades. Who would trust someone who can dismiss US$2,7 billion or US$4 billion in debt? Would you?
The trust deficit in Zimbabwe is part of the low confidence that the local and international markets have in the country. And until we fix this, the economy will not reach an upper middle-income status by 2030.
Remember, the capital requirement for the country is US$40 billion, according to Treasury. This means that the country needs significant investment and debt reprieve to access fresh lines of credit.
You will not get that unless you are honest, which is why public officials must be held to account, not to antagonise them, but to make them better leaders because they represent not themselves but Zimbabwe. Thus, for us to be part of the global economy, we need to hold officials accountable, and these officials must agree to it.
This is why we want Ncube to reveal, explain, and provide evidence showing what the country's debt is.
He owes us that much.
