Short-term loans push Zim’s debt to US$16bn

By ETimes

HARARE – ZIMBABWE’S external debt rose 4.8% to US$15.99 billion in 2025 led by an 18% jump in short-term borrowing as long-term loan repayments outpaced new disbursements, the International Debt Report showed.

Total external debt stood at US$15.99 billion at the end of 2025, up from US$15.26 billion a year earlier and 60% above the US$9.99 billion recorded in 2015, according to the data.

Short-term debt rose to US$4.70 billion from US$3.98 billion, lifting its share of total external debt to 29.4% from 26.1% while net short term inflows reached US$575.2 million.

Long term external debt slipped 0.6% to US$9.90 billion.

Principal repayments on long term debt rose 85.9% to US$1.75 billion, while disbursements fell 15.9% to US$1.50 billion.

That left net long term flows at negative US$247.4 million compared with an inflow of US$845.7 million in 2024.

Private borrowers without state guarantees accounted for US$1.60 billion of the repayments while public sector repayments totalled US$153.4 million.

Public and publicly guaranteed debt edged up 0.9% to US$6.22 billion.

Bilateral creditors held US$3.13 billion up 3.1% while multilateral lenders held US$2.57 billion down 3.2%.

Accordingly, debt owed to the International Monetary Fund, including special drawing rights allocations rose 5% to US$1.39 billion while private debt without state guarantees fell 2.9% to US$3.69 billion.

Solvency ratios improved as gross national income grew 23.1% to US$50.61 billion.

External debt fell to 145.2% of exports from 184.7% and to 31.6% of income from 37.1% while reserves covered 7.4% of external debt up from 3.2%.

Debt service, however, rose to 18.9% of exports from 17.1% in 2024 even as interest payments on long-term debt fell 49.3% to US$152.4 million.

Foreign direct investment more than doubled to US$958.6 million from US$465.4 million offsetting part of the pressure.

The data, analysts say point to a “lower debt burden” relative to the economy but a shorter maturity profile.