HARARE, Sept 18 – The International Monetary Fund (IMF) and Zimbabwean authorities have reached a staff-level agreement on policies needed to complete the second review of the country’s 10-month Staff-Monitored Program (SMP).
The agreement follows an IMF mission led by Wojciech Maliszewski, which visited Harare from September 7 to 17, 2026, for discussions with Zimbabwean authorities.
Completion of the review remains subject to approval by IMF Management. The Fund said approval would represent another step toward consolidating macroeconomic stability and building a track record needed for arrears clearance, debt restructuring and renewed engagement with the international community.
“Programme implementation through end-June 2026 was strong. All quantitative and indicative targets were met except the indicative target on protected social and priority spending,” the IMF said.
The Fund said the structural benchmarks covering publication of the finalized user manual for the Zimbabwe Social Registry (ZISO) and development of a Treasury Single Account reform strategy were also met.
Zimbabwe Growth Forecast at 5% in 2026
Zimbabwe’s economy is projected to expand by 5% in 2026, following growth of 8.3% in 2025, according to the IMF.
Annual inflation fell to 2.9% in August, supported by tight monetary conditions and relative exchange-rate stability. The current account is also expected to remain in surplus this year, helped by strong export receipts and remittance inflows.
Growth is projected to moderate to 3.5% in 2027, largely because of the expected effects of a severe El Niño event.
The IMF said the 2027 forecast incorporates mitigation measures planned by the Zimbabwean authorities, while warning that the outlook could deteriorate if weather conditions prove more severe than anticipated or if the planned measures are delayed or prove less effective.
Inflation is expected to remain in single digits in 2027, while the current account is projected to remain in surplus.
Fiscal Management Remains a Key Focus
The IMF said Zimbabwe’s fiscal performance through June was stronger than anticipated, supported by robust revenue collection.
The Fund said the improved fiscal position provides an opportunity for the government to strengthen its fiscal buffers while keeping expenditure within the approved budget.
It identified continued improvements in expenditure controls, cash planning, public financial management and domestic arrears management as important to maintaining fiscal credibility.
However, the shortfall in protected social and priority spending remains a concern.
The IMF said the missed target highlights the need to improve cash planning and budget execution so that approved funding reaches priority programmes and vulnerable households on time. Authorities have committed to addressing implementation bottlenecks and strengthening monitoring of social expenditure.
Tight Monetary Policy Supports ZiG Stability
The Reserve Bank of Zimbabwe (RBZ) has maintained a tight monetary policy stance, which the IMF said has helped contain inflation and pressures in the foreign exchange market.
The Fund recommended maintaining the stance until inflation expectations are firmly anchored and confidence in the Zimbabwe Gold (ZiG) currency strengthens.
The central bank has also advanced work on an electronic foreign-exchange trading platform, which the IMF described as an important step toward more transparent and market-based currency trading.
Authorities have additionally made progress on a broader strategy to liberalize the foreign-exchange market, strengthen monetary policy operations and reform the framework governing foreign-exchange intervention.
Debt and Governance Reforms Continue
The IMF said Zimbabwe has made progress on public financial and debt management reforms, including measures to bring U.S. dollar payments into the public financial management system and strengthen commitment controls and expenditure monitoring.
The completion of a framework for liability-management operations was also identified as an important development for ensuring that debt operations remain transparent, properly governed and aligned with the country’s medium-term debt strategy.
The Fund stressed that effective implementation of these reforms will be necessary to strengthen budget discipline, prevent new arrears and contain fiscal risks.
Governance and fiscal transparency remain another area of focus. The authorities have made progress in preparing National Anti-Corruption Strategy 2, while publication of the Mutapa Investment Fund’s financial statements and progress toward publishing financial statements for its portfolio companies were highlighted as steps toward greater transparency and oversight of public assets.
External Arrears Remain Central to Re-engagement
The IMF said resolving Zimbabwe’s external arrears and restoring debt sustainability remain central to the government’s efforts to re-engage with the international financial community.
Sustained performance under the Staff-Monitored Program, continued reconciliation of debt data and engagement with creditors will be important for advancing the next stages of the country’s arrears-clearance and debt-resolution process.
During the mission, IMF officials met with Finance, Economic Development and Investment Promotion Minister Mthuli Ncube, Permanent Secretary George Guvamatanga, RBZ Governor John Mushayavanhu, senior government officials, private-sector representatives, civil society groups and development partners.
The latest agreement therefore marks another stage in Zimbabwe’s efforts to strengthen macroeconomic management and establish the policy and financial track record required to address its longstanding external debt and arrears position.
