Zimbabwe has passed the first assessment under its International Monetary Fund (IMF) Staff-Monitored Programme (SMP), after IMF Management approved the complet...
Zimbabwe has passed the first assessment under its International Monetary Fund (IMF) Staff-Monitored Programme (SMP), after IMF Management approved the completion of the programme’s first review, marking a significant milestone in the country’s efforts to restore international financial credibility and re-engage with global lenders.
The IMF said Zimbabwe’s implementation of the 10-month programme through the end of March 2026 was strong, with the government meeting all quantitative performance targets and completing all structural benchmarks scheduled for March and June. Most indicative targets were also achieved, although the target for protected social and priority spending was missed.
The successful review is an important step in Zimbabwe’s strategy to build a credible policy track record that supports arrears clearance, debt restructuring and renewed engagement with the international community. The Staff-Monitored Programme does not provide IMF financing but serves as a key reform framework that could pave the way for future financial assistance once Zimbabwe resolves its external debt arrears.
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According to the IMF, Zimbabwe’s economy has remained resilient despite a challenging global environment. Economic growth reached 8.3% in 2025, driven by improved agricultural production, strong mining activity and favourable gold prices. The Fund projects growth to moderate to 5% in 2026 before averaging 4.2% over the medium term, while inflation is expected to remain in single digits if current fiscal and monetary policies are maintained.
The IMF said Zimbabwe met all end-March quantitative targets covering the primary budget balance, net international reserves, Reserve Bank of Zimbabwe lending to the non-financial public sector, external borrowing limits and monetary base growth. Authorities also completed key structural reforms aimed at strengthening tax administration, fiscal discipline and macroeconomic stability.
However, the Fund cautioned that risks remain tilted to the downside. It warned that a potential El Niño weather event, renewed conflict in the Middle East and other external shocks could affect growth, while calling for continued fiscal discipline, stronger governance, improved fiscal risk management and better protection of vulnerable households through enhanced social spending.
The IMF stressed that maintaining tight monetary policy, preserving exchange rate stability, strengthening governance reforms and improving budget execution will be essential to consolidating recent economic gains and advancing Zimbabwe’s re-engagement agenda.
Zimbabwe entered the 10-month Staff-Monitored Programme in March 2026 after years of economic reforms aimed at stabilising the economy and rebuilding relations with international financial institutions. The country remains unable to access IMF lending because of outstanding external debt arrears, making successful implementation of the programme an important step towards eventual debt restructuring and future concessional financing.
