## IMF Staff Completes SMP Discussion Mission to Zimbabwe

_IMF News, February 13, 2025_

## Source details

**Canonical URL:** [IMF Staff Completes SMP Discussion Mission to Zimbabwe](https://www.imf.org/en/news/articles/2025/02/13/pr-2535-zimbabwe-imf-completes-smp-discussion-mission)

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## Bibliographic details
- Published: February 13, 2025

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### Mission overview
- IMF staff team led by Mr. Wojciech Maliszewski conducted a mission to Harare from January 30 to February 13, 2025, to advance discussions on a Staff-Monitored Program (SMP).
- Press Release No. 25/35; End-of-Mission press releases convey preliminary findings after a visit to a country. The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
- IMF Communications Department contact: PRESS OFFICER: Kwabena Akuamoah-Boateng; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson

### Economic assessment and recent developments
- Growth and output:
  - Growth slowed from 5.3 percent to an estimated 2 percent in 2024.
  - Agricultural output was lowered by 15 percent in 2024 due to the El Niño-induced drought.
  - Growth in 2025 is projected to increase to 6 percent, driven by the recovery in agriculture output due to better climate conditions and the projected improvement in the terms-of-trade.
- External sector and remittances:
  - Strong remittances continued supporting activity in domestic trade, services, and construction.
  - Current account surplus improved to an estimated US$500 million (1.4 percent of GDP) in 2024.
- Prices, exchange rate, and monetary conditions:
  - The ZiG willing-buyer willing-seller (WBWS) exchange rate was stable from the ZiG’s introduction in April 2024— with the ZiG month-on-month inflation averaging 2.3 percent—until September, when the currency weakened.
  - Relative stability returned with the tightening of monetary policy since September; the WBWS and parallel market exchange rates have stabilized, and the gap between these rates has narrowed.
- Fiscal developments:
  - Strong revenue collection helped limit the 2024 budget deficit to an estimated 1 percent of GDP.
  - Fiscal pressures intensified—owing, in large part, to the transfer of the RBZ’s quasi-fiscal operations to the Treasury—resulting in an accumulation of domestic expenditure arrears and emergency spending cuts.

### SMP objectives and discussions
- Authorities requested an SMP in 2023 to support efforts to stabilize the economy and re-engage with the international community on arrears clearance and debt resolution.
- The main objective of the SMP would be to durably anchor macroeconomic stability, building on policy recommendations from the 2024 Article IV consultation.
- Fund staff will continue working closely with the authorities to define key parameters and modalities of the SMP. Discussions include:
  1. adjusting the fiscal position to avoid a recourse to monetary financing and new arrears and building foundations for a durable fiscal consolidation;
  2. fiscal risks residing off-budget (including from the operations of the Mutapa Investment Fund);
  3. the effectiveness of the monetary policy framework for the ZiG; and
  4. reforms to strengthen economic governance.

### IMF support, conditions, and debt reengagement
- The SMP is intended to enhance policy credibility and advance the reform agenda embedded in the Structured Dialogue Platform (SDP).
- International reengagement remains critical for debt resolution and arrears clearance, which would open the door for access to external financing.
- The authorities' reengagement efforts, through the SDP, are key for attaining debt sustainability and gaining access to concessional financial support.
- The IMF continues to provide policy advice and extensive technical assistance in:
  - revenue mobilization, expenditure control, financial supervision, debt management, economic governance, and macroeconomic statistics.
- The IMF is currently precluded from providing financial support to Zimbabwe due to its unsustainable debt situation—based on the IMF’s Debt Sustainability Analysis (DSA)—and official external arrears.
- An IMF financial arrangement would require:
  - a clear path to comprehensive restructuring of Zimbabwe’s external debt, including the clearance of arrears; and
  - a reform plan that is consistent with durably restoring macroeconomic stability; enhancing inclusive growth; lowering poverty; and strengthening economic governance.

### Engagements and acknowledgments
- The IMF mission held meetings with:
  - Minister of Finance, Economic Development and Investment Promotion Hon. Professor Mthuli Ncube, Permanent Secretary Mr. George Guvamatanga; Reserve Bank of Zimbabwe Governor Dr. John Mushayavanhu; Chief Secretary to the President and Cabinet Dr. Martin Rushwaya; other senior government and RBZ officials; honorable members of Parliament; representatives of the private sector; civil society; and Zimbabwe’s development partners.
- IMF staff expressed gratitude to the Zimbabwean authorities and stakeholders for the constructive and open discussions and support during the mission.

*End-of-Mission press release, February 13, 2025.*

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## References

- [Zimbabwe and the IMF](http://www.imf.org/external/country/ZWE/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [DSA](https://www.imf.org/external/pubs/ft/dsa/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2025/02/13/pr-2535-zimbabwe-imf-completes-smp-discussion-mission_