IMF Backs Zimbabwe Economic Reform Programme, Clears First SMP Review

Harare — The International Monetary Fund (IMF) has approved the completion of the first review of Zimbabwe's 10-month Staff-Monitored Programme (SMP), saying the country met all end-March quantitative targets and structural reform benchmarks.

The pproval is expected to strengthen Zimbabwe's efforts to clear debt arrears, restructure debt and re-engage with the international community.

In a statement, IMF Press Officer, Kwabena Akuamoah-Boateng said completion of the review reflected strong implementation of the economic reform programme.

He said it marks an important step in consolidating recent stabilisation gains and strengthening Zimbabwe's track record of policy implementation in support of arrears clearance, debt restructuring and re-engagement with the international community.

Zimbabwe's economy has remained resilient despite a more challenging global environment, with economic growth reaching 8.3 percent in 2025 and remaining strong into early 2026, the IMF said.

"Growth remained strong in 2025 at 8.3 percent and continued into early 2026, supported by improved agricultural production, robust mining activity and favorable gold prices.

"Inflation has remained low, reflecting tight monetary conditions and relative exchange rate stability," Boateng said.

IMF projects Zimbabwe's economy to grow by 5 percent in 2026 before moderating to 4.2 percent over the medium term, while inflation is expected to remain in single digits under continued tight monetary and fiscal policies.

The Fund however cautioned that risks remain, citing the possibility of a major El Niño event and a renewed conflict in the Middle East as key threats to the country's economic outlook.

The IMF said the implementation of the programme is strong, with all end-March quantitative targets achieved.

"All end-March quantitative targets were met, including those relating to the primary budget balance, net international reserves, Reserve Bank of Zimbabwe credit to the non-financial public sector, external borrowing and monetary base growth," IMF said.

The Fund also noted that the end-March and end-June structural benchmarks had been completed, while authorities continued making progress on subsequent reform commitments.

They said the programme continued to support prudent fiscal management, with the fiscal primary balance outperforming expectations due to stronger-than-anticipated revenue collection.

"The program supports the authorities' commitment to maintain spending within the approved 2026 national budget, while saving additional revenues to build buffers for potential food-security needs in 2027," the IMF said.

On monetary policy, the IMF commended the Reserve Bank of Zimbabwe (RBZ) for maintaining a tight policy stance that has helped contain inflation and stabilise the foreign exchange market.

"The Reserve Bank of Zimbabwe has maintained a tight monetary policy stance to contain inflation and reduce pressures in the foreign exchange market.

"This stance should continue until inflation expectations are firmly anchored and confidence in the local currency strengthens," They said.

The IMF also welcomed the operationalisation of the Zimbabwe Gold (ZiG)-denominated term deposit facility and plans to further liberalise the foreign exchange market through a comprehensive reform strategy.

Despite the overall positive assessment, the Fund noted that Zimbabwe fell short of one social protection target.

"Most indicative targets were observed, although the indicative target on protected social and priority spending was missed," the IMF said, adding that authorities should strengthen budget execution to ensure timely support for vulnerable groups.

The Fund said continued progress in public financial management, governance reforms and fiscal risk management would be essential to reinforce transparency, accountability and confidence in Zimbabwe's policy framework.

Looking ahead, the IMF said sustained policy discipline would be critical to maintaining macroeconomic stability and advancing Zimbabwe's re-engagement efforts.

"The program also supports the authorities' broader re-engagement agenda.

"Continued progress under the SMP, together with ongoing efforts to reconcile debt data and develop a credible arrears-clearance and debt-resolution strategy, will help advance discussions with external partners and support the next stages of Zimbabwe's re-engagement process."