A WORLD BANK report says Zimbabwe is among the world’s poorest developing countries, suffering from a deadly mix of climate change, conflict and food insecurity.
In a report titled 2023 in Nine Charts: Growing Inequality, the World Bank said the world’s poorest countries have been hit the hardest by debts and lack of resources.
“Many of these countries, already in debt distress, find themselves even more squeezed for resources,” the report reads.
“While extreme poverty in middle-income countries has decreased, poverty in the poorest countries and countries affected by fragility, conflict, or violence is still worse than before the pandemic.”
According to the report, widespread poverty in those countries makes the attainment of key global development goals much harder to achieve.
“Last year’s International Debt Report highlighted rising debt-related risks for all developing economies — low as well as middle-income economies — but the strain was intensifying for the world’s poorest countries, which were squeezed by surging debt service payments. The pressure continues this year,” the report read.
“The poorest countries eligible to borrow from the World Bank’s International Development Association paid a record US$88,9 billion in debt-servicing costs in 2022, 4,8% more than in 2021.
“The world’s poorest face the risk of debt crises as borrowing costs surge. The increase in costs shifted scarce resources away from critical needs such as health, education, and the environment.”
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Earlier this year, humanitarian organisation ActionAid urged authorities in Zimbabwe to be wary of International Monetary Fund and World Bank austerity and debt policies to avoid debt traps.
Zimbabwe’s total consolidated debt amounts to over US$17,5 billion.
Debt owed to international creditors stands at US$14,04 billion, while domestic debt comes to US$3,4 billion.
Debt owed to bilateral creditors is estimated at US$5,75 billion, while debt to multilateral creditors is estimated at US$2,5 billion.
