IMF Staff Reaches Staff-Level Agreement with Zimbabwe on the Second Review under the Staff-Monitored Program

Washington, DC: An IMF team led by Mr. Wojciech Maliszewski visited Harare from September 7 to 17, 2026, to conduct discussions for the second review under Zimbabwe’s Staff-Monitored Program. Following productive discussions with the Zimbabwean authorities, Mr. Maliszewski issued the following statement:“We are pleased to announce that IMF staff and the Zimbabwean authorities have reached a staff-level agreement on policies to complete the second review under Zimbabwe’s 10-month Staff-Monitored Program.

The agreement is subject to approval by IMF Management. Completion of the review would mark a further step in consolidating macroeconomic stability and building a track record toward arrears clearance, debt restructuring, and re-engagement with the international community.“Program implementation through end-June 2026 was strong. All quantitative and indicative targets were met except the indicative target on protected social and priority spending.

The end-June structural benchmarks on publishing the finalized user manual for the Zimbabwe Social Registry (ZISO) and developing a Treasury Single Account reform strategy were also met.“Following strong growth of 8.3 percent in 2025, Zimbabwe’s economy is projected to expand by 5 percent in 2026. Annual inflation declined to a low single-digit rate of 2.9 percent in August, supported by tight monetary conditions and relative exchange rate stability.

The current account is projected to remain in surplus in 2026, reflecting strong export receipts and remittance inflows.“In 2027, growth is expected to moderate to 3.5 percent because of the anticipated effects of a super El Niño event. This estimate takes into account the authorities’ planned mitigation measures. Inflation is expected to remain in single digits, and the current account is projected to remain in surplus.

The outlook remains subject to downside risks if the El Niño event is more severe than assumed or the mitigating measures are delayed or less effective than expected.“Fiscal performance through end-June was stronger than expected, reflecting robust revenue collection. This provides an opportunity to strengthen fiscal buffers while maintaining spending within the approved budget. Continued improvements in expenditure control, cash planning, public financial management, and domestic arrears management will be important to safeguard fiscal credibility and preserve macroeconomic stability.“The shortfall in protected social and priority spending remains a significant concern.

The missed target underscores the need to improve cash planning and budget execution so that approved resources reach priority programs and vulnerable households in a timely manner. Staff welcomes the authorities’ commitment to address the implementation bottlenecks and strengthen monitoring of social spending. “The Reserve Bank of Zimbabwe has maintained a tight monetary policy stance, helping to keep inflation low and contain pressures in the foreign exchange market.

This stance should be maintained until inflation expectations are firmly anchored and confidence in the ZiG strengthens. The RBZ has advanced the development of an electronic foreign exchange trading platform, an important step toward more transparent and market-based foreign exchange trading. The authorities have also made important progress in developing a comprehensive strategy to further liberalize the foreign exchange market, strengthen monetary policy operations, and reform the FX intervention framework.“Structural reforms in public financial and debt management have advanced. The authorities have taken important steps to bring U.S. dollar payments within the public financial management system and strengthen commitment controls and expenditure monitoring. Completion of the framework for liability management operations is also an important step toward ensuring that debt operations are transparent, well governed, and consistent with the medium-term debt strategy. Effective implementation of these reforms will be critical to strengthening budget discipline, preventing new arrears, and containing fiscal risks .“Strengthening governance and fiscal transparency remains essential.

The authorities have made important progress in preparing the National Anti-Corruption Strategy 2. The publication of the Mutapa Investment Fund’s financial statements, along with progress toward publishing the financial statements of its portfolio companies, represents a further step toward stronger transparency and oversight of public assets and fiscal risks. Effective implementation of the anti-corruption strategy and continued improvements in financial reporting will be important to reinforce accountability and public confidence. “Resolving Zimbabwe’s external arrears and restoring debt sustainability remain central to the authorities’ re-engagement agenda. Continued strong performance under the SMP, progress in debt data reconciliation, and sustained engagement with creditors will be important to support the next stages of the arrears-clearance and debt-resolution process. “The IMF mission team met with Minister of Finance, Economic Development and Investment Promotion Honorable Prof. Mthuli Ncube, Permanent Secretary for Finance, Economic Development and Investment Promotion Mr. George Guvamatanga, Governor of the Reserve Bank of Zimbabwe Dr. John Mushayavanhu, senior government officials, representatives of the private sector, civil society, and development partners. The team expresses its sincere appreciation to the Zimbabwean authorities for their close cooperation and constructive discussions.”

IMF Communications Department

Source: IMF Staff Reaches Staff-Level Agreement with Zimbabwe on the Second Review under the Staff-Monitored Program

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