Abstract
This study sought to suggest a sustainability framework for managing the external public debt in Zimbabwe. Its central focus was on ascertaining why Zimbabwe’s external public debt has remained unsustainable despite several efforts that have been introduced to manage this debt. This study was anchored on the qualitative research approach and utilised a case study research design. The study discussed and unpacked the key conceptual variables which underpin external public debt sustainability, such as debt sustainability; public debt; and public debt management. The study used Domar’s theory of debt sustainability, the debt-to-GDP ratio, and the World Bank and IMF’s Debt Sustainability Analysis (DSA) framework were used as the central theoretical lenses and models for understanding debt sustainability. The study found that the evolution of external public debt sustainability in Zimbabwe’s case has been influenced by both global and regional trends as well as the conditions prevailing within the country. The study also found that there are several international best practices that have been prescribed by several institutions such as the IMF, the World Bank and the UNCTAD designed to ensure that there is sustainable debt management. It was also noted that the institutional and legislative frameworks informing external public debt management in Zimbabwe are similar to the frameworks which govern all public debt. The study’s findings revealed that there are numerous factors that have affected the sustainability of Zimbabwe’s external public debt. It was also noted that there are several challenges that have been encountered in the management of external public debt in Zimbabwe. As a result, there are several implications of these many factors and challenges which have been encountered in the efforts to make Zimbabwe’s external public debt more sustainable. The study further noted that the measures that have been adopted by the Government of Zimbabwe (GoZ) over the past few years with the goal of attaining external public debt sustainability have not been particularly successful. The research, therefore, recommends that, in order to attain debt sustainability, there is a need for debt management to be carried out in a context characterised by important variables such as the existence of political will, economic growth, and the goodwill from creditors. The study further recommends that there is a need for the government of Zimbabwe to institute reforms in the governance structure for managing external public debt in Zimbabwe as well as reform its debt management practices.
Keywords: Debt sustainability, Debt Management, External Public Debt, Zimbabwe.