THE EXTERNAL DEBT MANAGEMENT PROBLEM: THE CASE OF ZIMBABWE (2000 – 2012).

Abstract

This research reflects on the debt management problem in Zimbabwe. Like any other country Zimbabwe has a Constitutional legal framework that touches on debt management. The major issue at hand is why Zimbabwe is failing to sustain its external debt stock whilst it has a Constitutional legal framework that focuses on debt management. The study hypothesized that inadequacy of the Constitutional legal frameworks has led to unsustainable debt. The research utilized purposive and snowball sampling in selecting the key respondents. Data was gathered through document study, questionnaires and interviews. Questionnaires were administered to key respondents and in some cases interviews were concurrently held. Though the Constitutional legal frameworks provide for the institutional set up to undertake debt management and provide for the legality of loan contraction, the research revealed that the Constitutional legal frameworks are inadequate in other matters relating to debt management. Research findings demonstrated that the Constitutional legal frameworks do not specify the loan contraction process, void on external borrowing ceiling and does not clearly provide for the circumstances under which borrowing is permissible and makes loan contraction exclusive. It is in light of these lacunas that the recommendations were premised on. The study promotes the strengthening of Constitutional legal frameworks relating to debt management.