By Kwedu News
In an attempt to alleviate Zimbabwe’s growing debt burden, China has written off an unstated amount of the country’s interest-free loans.
China’s ambassador to Zimbabwe, Zhou Ding, emphasised China’s commitment to assisting Zimbabwe resolve its debt issues.
He said ‘China attaches great importance to resolving Zimbabwe’s debt issues.’
Though data on the exact amount of loans received from the Chinese is not available, it is estimated that the debt ranges from between US$3 billion to US$13 billion.
As things stand, Zimbabwe’s publicly guaranteed debt as of September 2023 stood at $17.7 billion.
Of that, US$12.7 billion being external debt and $5 billion domestic debt, data online shows.
China has been used by Zimbabwe as an alternative source of funding, accessing millions of dollars in loans as the country currently has no access to global multilateral creditors from the west, due to over two decades of defaulting in repayments.
Critics however warn that the cancellation may create a permanent debt trap, granting China significant political leverage in Africa, despite the gesture providing temporary relief for Zimbabwe.
China is however on record denying the accusations, citing its policy of non-interference in other countries’ affairs.
Zimbabwe’s economic woes persist, with a devastating drought and hyperinflation that led to the recent relaunch of its currency for the third time in a decade.
Authorities in Harare hope the move will also provide relief to general citizens struggling to access basic necessities such as petrol and food.
