The International Monetary Fund has reached a staff-level agreement with Zimbabwe on a 10-month Staff-Monitored Program aimed at consolidating macroeconomic stabilisation and rebuilding policy credibility as the country seeks progress on debt restructuring and arrears clearance.
The agreement follows IMF discussions with Zimbabwean authorities held from January 28 to February 6 and is subject to IMF management approval. The SMP will not be presented to the Fund’s Executive Board.
The IMF said Zimbabwe’s economy outperformed expectations in 2025, with growth exceeding the initial 6.6 percent projection, driven by strong agricultural output and improved mining performance, supported by high gold prices and recovering platinum and lithium production.
“Zimbabwe’s economic recovery continues, supported by tight monetary policy, improving fiscal discipline, and favorable external conditions,” IMF mission chief Wojciech Maliszewski said.
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Inflation declined to 4.1 percent in January 2026, aided by exchange rate stability and tight monetary conditions, while stronger revenues helped narrow the fiscal deficit and deliver a small primary surplus in 2025.
For 2026, the IMF projects economic growth of around 5 percent, with inflation expected to remain in single digits. The current account balance is forecast at a surplus of about 3.8 percent of GDP, while the primary fiscal balance is projected at roughly 0.5 percent of GDP.
The SMP places emphasis on prudent budget execution, tighter cash management, and improved public financial management, including stronger arrears monitoring and better liquidity forecasting. It also supports measures to entrench confidence in the ZiG currency, improve foreign exchange market functioning, and rebuild reserve buffers.
Governance reforms under the program include enhanced transparency at the Mutapa Investment Fund, including publication of audited financial statements for state-owned enterprises and restrictions on contracting debt without Treasury approval.
The IMF said the program is intended to establish a credible reform track record to support Zimbabwe’s re-engagement efforts on arrears clearance and debt restructuring.
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