Zimbabwe’s efforts to restructure its $23 billion debt are facing growing uncertainty as controversial plans to extend President Emmerson Mnangagwa’s rule unsettle international lenders. A proposed constitutional amendment would delay elections by two years and shift presidential selection powers from voters to parliament, raising concerns about governance and democratic backsliding. The move is alarming international creditors, including the World Bank, African Development Bank, and Paris Club nations, who have consistently cited rule of law and democratic credibility as preconditions for any debt relief. Economists warn the proposal could also jeopardize support for a crucial $2.6 billion bridging loan needed to clear arrears and restore access to international financing. The concerns come despite recent economic improvements, including lower inflation and stronger fiscal discipline under an IMF-monitored reform program.
African Business
