Government debt to service providers jumps to US$1.36bn
Policy Watch
Zimbabwe’s domestic expenditure arrears to contractors and other service providers rose to ZiG35.4 billion, equivalent to US$1.36 billion, by December 2025, contributing to a rise in the country’s total public debt, according to the 2025 Annual Public Debt Bulletin.
The government’s total public and publicly guaranteed debt rose by 1.4% from US$21.5 billion in December 2024 to US$21.8 billion at the end of 2025.
The debt bulletin attributes the increase mainly to the broader recognition of money owed to service providers for government projects and programmes.
The arrears include obligations linked to road construction, dam development, water-supply projects and the agricultural input support scheme. These areas account for 77.3% of the reported domestic expenditure arrears.
The figures are not yet final. The Office of the Auditor-General is auditing the arrears, while the government carries out a reconciliation process to establish which claims are valid and how much is actually owed.
The increase means contractors and suppliers working on public projects were owed substantially more by government at the end of 2025 than previously reported.
For ordinary Zimbabweans, the arrears relate to projects and services that affect transport, water supplies and agricultural support. However, the bulletin does not state how many projects were delayed or suspended because of the unpaid bills.
Domestic debt stood at US$10.1 billion at the end of 2025, while external debt was recorded at US$11.8 billion.
The bulletin said US$10.3 billion, or 47.3% of Zimbabwe’s total public and publicly guaranteed debt, consisted of arrears and penalties.
The government is addressing the obligations through its Arrears Clearance and Debt Resolution Roadmap, which is intended to guide the payment and restructuring of outstanding debts.
The final amount owed to contractors and other service providers will depend on the outcome of the Auditor-General’s audit and the government’s reconciliation process.
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