Zimbabwe is taking concrete steps to clear its $23 billion debt to multilateral institutions, President Emmerson Mnangagwa said Thursday. The southern African nation is engaged in an Arrears Clearance and Debt Resolution Process with international financial institutions, which Mnangagwa described as progressing well. The government recognizes that credibility and predictability are essential to restoring investor confidence and securing new lines of credit.

The debt clearance effort follows Zimbabwe's recent securing of a staff-monitored program from the International Monetary Fund last month. This program represents a critical step toward resolving the country's debt burden that has excluded it from international capital markets for nearly three decades. Zimbabwe defaulted on loans from the World Bank, Paris Club, and African Development Bank in 1999.

Mnangagwa's government has enlisted former Mozambican President Joaquim Chissano and the African Development Bank to help negotiate with creditors. The debt clearance could potentially unlock Zimbabwe's access to international financing and investment, marking a significant shift in the country's economic prospects after years of isolation.