South Africa’s finance minister, Enoch Godongwana, has stated the government supports Zimbabwe’s key reforms to resolve its debt problems.

Should the reforms be successful, they may bolster economic integration within the entire Southern African Development Region.

During a roundtable on Zimbabwe’s debt arrears clearance at the African Development Bank (AfDB)’s 2023 annual meetings this week, the finance minister said challenges faced by Zimbabwe would also have ramifications for South Africa’s economy.

“All of us are concerned about Zimbabwe. Economic sanctions continue to place Zimbabwe further into unsustainable debt. We support this (debt reforms) initiative with all our effort,” Godongwana said.

The outstanding debt arrears have long impacted Zimbabwe’s socioeconomic development. As such, along with the AfDB and other development partners, Zimbabwe has been working on ways to clear its debt and arrears.

Zimbabwe’s president Emmerson Mnangagwa said during the roundtable that the government remains committed to the reforms implemented last December. These reforms are deemed critical to resolving Zimbabwe’s close to $8.3 billion of debts and arrears, Business Day reports.

The president added that his government set up a Structured Dialogue Platform with creditors and development partners to reinforce the debt resolution process and arrears clearance.

“In spite of the challenges associated with the debt overhang and further exacerbated by the albatross of the illegal economic sanctions, Zimbabwe is realising key milestones towards moving our country forward for the good of our people,” Mnangagwa commented.

Whereas the president of the AfDB, Akinwumi Adesina, added that two additional high-level dialogues have also taken place regarding Zimbabwe’s plans to resolve its debt obligations.

“The issues are not just economic or financial. They also involve governance, rule of law, human rights, freedom of speech, political level playing field, electoral reforms that will assure free and fair elections — as well as fairness, equity and justice for the commercial farmers and other businesses who were dispossessed of their lands, for which there is a clear need for restitution and compensation,” Adesin stated.