IMF Reaches Staff-Level Agreement with Zimbabwe on a New Staff-Monitored Program
IMF News, February 6, 2026
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- Published: February 6, 2026
Program scope and objectives
- Staff-level agreement reached on economic policies and reforms to be monitored under a 10-month Staff-Monitored Program (SMP).
- SMP aims to:
- Consolidate recent stabilization gains and strengthen macroeconomic management.
- Strengthen fiscal and monetary policy frameworks, improve foreign exchange market functioning, and advance governance reforms to support stronger and more inclusive growth.
- Support the authorities’ social protection efforts.
- The SMP forms part of Zimbabwe’s broader strategy to build a credible reform track record and advance re-engagement with the international community on arrears clearance and debt restructuring under the Structured Dialogue Platform.
- This staff-level agreement is subject to IMF Management approval.
Mission and process
- IMF staff team led by Mr. Wojciech Maliszewski held discussions with the Zimbabwean authorities in Harare from January 28 to February 6, 2026.
- Discussions focused on ongoing policies and reforms to support an SMP that would entrench macroeconomic stability, strengthen policy credibility, and advance re-engagement efforts towards arrears clearance and debt restructuring.
- The mission will not result in a Board discussion; end-of-mission press release conveys preliminary findings of IMF staff and does not necessarily represent the views of the IMF’s Executive Board.
Recent macroeconomic performance (as reported)
- Growth:
- Growth strengthened in 2025, surpassing the initial projection of 6.6 percent, with solid performances in agriculture and mining.
- Growth in 2026 is projected at around 5 percent, supported by continued strength in agriculture and mining.
- Inflation:
- Inflation fell to 4.1 percent in January 2026, aided by exchange rate stability and tight monetary conditions.
- Inflation is expected to remain in single digits in 2026.
- External sector:
- The current account is projected to remain in surplus at about 3.8 percent of GDP.
- Fiscal:
- Fiscal revenues strengthened in 2025, supported by improved tax administration and new measures, narrowing the deficit and producing a small primary surplus.
- The primary fiscal balance is expected to register a surplus of about half a percent of GDP in 2026.
Key policy measures and reforms supported by the SMP
- Fiscal policy and public financial management (PFM):
- Emphasis on prudent budget execution, improved cash and expenditure controls, and avoiding accumulation of new domestic arrears.
- Spending in the first half of the year to be anchored on a conservative revenue outlook in line with the 2026 budget.
- Strengthen domestic arrears monitoring through regular reporting and clearer institutional responsibilities.
- Improve cash planning and short-term liquidity forecasting to support more predictable and credible budget execution.
- Over time, implement broader PFM reforms: upgrades to budget controls, improved capture of commitments, and steps toward a Treasury Single Account.
- Monetary and foreign exchange policy:
- Maintain low and stable inflation and preserve progress in easing pressures in the foreign exchange market.
- Strengthen the monetary policy framework, including measures to promote demand for the ZiG, enhance monetary policy operations, and improve FX market efficiency.
- Governance and fiscal risk management:
- Support structural reforms to strengthen governance and improve management of fiscal risks.
- Mutapa Investment Fund: following the publication of the inaugural financial statement, take further steps to enhance transparency by publishing audited financial statements for all state-owned enterprises under its portfolio in line with Public Financial Management Act.
- Mutapa Investment Fund to continue refraining from contracting debt without the prior written approval of the Ministry of Finance, Economic Development and Investment Promotion.
- Social protection:
- Support authorities’ efforts to strengthen social protection.
- Fully operationalize the Zimbabwe Social Registry (ZISO) to improve targeting and delivery of social assistance so support reaches households most in need.
Expected outcomes and next steps
- The SMP is intended to establish a credible track record to support the authorities’ re-engagement efforts and complement the broader strategy toward arrears clearance and debt restructuring, including eventual access to external concessional financing.
- Continued progress on reforms, strengthened policy credibility, and improved transparency are expected to lay the groundwork for more substantive discussions with international partners on arrears-clearance and debt restructuring modalities in the near term.
- IMF staff expressed appreciation for the constructive dialogue and cooperation and look forward to continued close engagement as the authorities advance the agreed reform agenda.
Source: IMF Press Release No. 26/032 (February 6, 2026).