Washington, DC: IMF Management has approved a 10-month non-financing Staff-Monitored Program (SMP) for Zimbabwe. The program aims to consolidate recent stabilization gains, strengthen macroeconomic management, and support the authorities’ efforts to advance re-engagement with the international community.
Zimbabwe’s economic recovery continues, supported by tight monetary policy, improving fiscal discipline, and favorable external conditions. Growth strengthened in 2025, with solid performances in agriculture and mining, supported by high gold prices and recovering platinum and lithium output. Inflation declined sharply, reaching 4.4 percent in March 2026, aided by a stable foreign exchange rate and tight monetary conditions. Sustained policy efforts will help entrench macroeconomic stability, deepen confidence in the ZiG, enhance foreign exchange market functioning, rebuild reserve buffers, and reinforce the foundations for durable and inclusive growth.
The program supports the authorities’ commitment to prudent budget execution and sound expenditure control. In line with the 2026 budget, spending in the first half of the year will be anchored on a conservative revenue outlook to ensure alignment with available resources and avoid the accumulation of new domestic arrears. The authorities will strengthen fiscal discipline and transparency through enhanced monitoring and reporting of domestic arrears and clearer institutional responsibilities.
Improving cash planning and public financial management is a central pillar of the program. The authorities will enhance institutional arrangements for cash management and improve short-term liquidity forecasting to support more predictable and credible budget execution. Over time, broader public financial management reforms, including strengthened budget controls, improved commitment recording, and progress toward a Treasury Single Account—will enhance the efficiency, transparency, and discipline of public spending.
The program will support efforts to maintain low and stable inflation and preserve progress in easing foreign exchange market pressures. It will also help lay the foundations for strengthening the monetary policy framework, including measures to promote demand for the ZiG, enhance monetary policy operations, and improve foreign exchange market efficiency.
Structural reforms under the program aim to strengthen governance and improve the management of fiscal risks. This includes measures to enhance transparency through the publication of audited financial statements for state-owned enterprises under the Mutapa Investment Fund, and to limit fiscal risks through adherence to the Public Debt Management Act and improved reporting of public sector liabilities.
The program also supports the authorities’ efforts to strengthen social protection. The Zimbabwe Social Registry will be further operationalized to improve the targeting and delivery of social assistance and ensure support reaches the most vulnerable households.
The SMP is intended to help Zimbabwe establish a credible track record of policy implementation as a steppingstone toward a potential Fund-supported program and to support the authorities’ broader roadmap for arrears clearance and re-engagement with the international community.
