IMF, Zimbabwe Reach Staff-Level Agreement on Proposed Staff-Monitored Programme
An International Monetary Fund (IMF) staff team and the Zimbabwean authorities have reached a staff-level agreement on key economic policies and reforms that could underpin a Staff-Monitored Programme (SMP), aimed at consolidating macroeconomic stability and advancing the country’s re-engagement agenda.
The discussions, led by IMF Mission Chief for Zimbabwe, Wojciech Maliszewski, were held in Harare from January 28 to February 6, 2026, and focused on policy measures to support arrears clearance and debt restructuring efforts. The agreement remains subject to IMF Management approval.
In a statement at the conclusion of the mission, Mr. Maliszewski said the proposed 10-month SMP, anchored in Zimbabwe’s National Development Strategy 2 (NDS2), seeks to consolidate recent stabilization gains, strengthen fiscal and monetary policy frameworks, improve foreign exchange market functioning, and advance governance reforms to support stronger and more inclusive growth.
He noted that Zimbabwe’s economic recovery has continued, supported by tight monetary policy, improved fiscal discipline, and favourable external conditions. Economic growth strengthened in 2025, exceeding the initial projection of 6.6 percent, driven by strong performances in agriculture and mining, aided by high gold prices and recovering platinum and lithium output.
Inflation declined to 4.1 percent in January 2026, reflecting exchange rate stability and tight monetary conditions, while fiscal revenues improved on the back of stronger tax administration and new revenue measures. This helped narrow the fiscal deficit and deliver a small primary surplus in 2025.
Looking ahead, the IMF projects economic growth of about 5 percent in 2026, supported by continued strength in agriculture and mining. Inflation is expected to remain in single digits, while the current account balance is projected to stay in surplus at around 3.8 percent of GDP. The primary fiscal balance is also expected to post a surplus of about 0.5 percent of GDP.
The Fund stressed that continued reform efforts will be critical to entrench stability, strengthen confidence in the ZiG currency, deepen foreign exchange market efficiency, rebuild reserve buffers, and reinforce the institutional foundations for sustained growth.
Under the proposed programme, fiscal policy will focus on prudent budget execution and expenditure control, with spending in the first half of 2026 anchored on conservative revenue assumptions to avoid the accumulation of new domestic arrears. Authorities have also committed to strengthening domestic arrears monitoring through regular reporting and clearer institutional responsibilities.
The SMP further places emphasis on improving cash planning and public financial management, including enhanced liquidity forecasting, stronger budget controls, improved commitment tracking, and steps toward establishing a Treasury Single Account.
On the monetary side, the programme aims to preserve low and stable inflation, ease pressures in the foreign exchange market, and strengthen the monetary policy framework, including measures to boost demand for the ZiG and improve FX market operations.
Governance and structural reforms also feature prominently. The Mutapa Investment Fund is expected to enhance transparency by publishing audited financial statements for state-owned enterprises under its portfolio and continue refraining from contracting debt without prior approval from the Ministry of Finance.
In addition, the programme supports efforts to strengthen social protection through the full operationalisation of the Zimbabwe Social Registry to improve the targeting and delivery of social assistance.
According to the IMF, the SMP is intended to help establish a credible policy track record to support Zimbabwe’s re-engagement with international partners and pave the way for progress on arrears clearance, debt restructuring, and eventual access to concessional external financing.
The IMF staff team expressed appreciation to the Zimbabwean authorities for the constructive engagement and cooperation and said it looks forward to continued close collaboration as reforms advance.
