IMF Approves First Review Under Zimbabwe Staff-Monitored Program

• The IMF has approved the completion of the first review under Zimbabwe's Staff-Monitored Program (SMP).
• Zimbabwe's economy remains resilient, with growth at 8.3 percent in 2025 and continued strong performance into early 2026.
• All end-March quantitative targets were met under the SMP, including those related to fiscal discipline and monetary policy.
• The program supports Zimbabwe's efforts to clear arrears, restructure debt, and re-engage with the international community.

The IMF has praised Zimbabwe for its strong program implementation under the SMP, with all end-March quantitative targets met.

The International Monetary Fund (IMF) has given its seal of approval to Zimbabwe's progress under the Staff-Monitored Program (SMP), a key development in the country's efforts to stabilize its economy and re-engage with the international community. The 10-month SMP, which was approved in March 2026, aims to support arrears clearance, debt restructuring, and economic growth. Zimbabwe's resilience in the face of external challenges has been notable, with growth remaining strong at 8.3 percent in 2025 and continuing into early 2026. This performance is attributed to improved agricultural production, robust mining activity, and favorable gold prices. The country's inflation rate remains low, a testament to tight monetary conditions and relative exchange rate stability.

The IMF has praised Zimbabwe for its strong program implementation under the SMP, with all end-March quantitative targets met. These targets included those related 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. The authorities have also made progress toward subsequent reform commitments, including the completion of structural benchmarks and the operationalization of a new term deposit facility. This development is expected to strengthen monetary transmission and support domestic money market development. The program continues to support prudent fiscal management, with the fiscal primary balance through end-March stronger than expected.

While Zimbabwe's economic outlook remains favorable, risks are tilted to the downside due to potential external shocks such as a major El Niño event and renewed conflict in the Middle East. To mitigate these risks, the authorities must continue to strengthen budget execution, commitment controls, public financial management, and domestic arrears clearance. The program also supports commitments to contain fiscal risks from gold delivery incentives, early redemptions, and other liability-management operations. Strengthening social protection systems and improving budget execution will be critical in preventing new arrears and safeguarding fiscal credibility.

Lawyers and compliance officers should watch for the potential impact of this development on Zimbabwe's arrears clearance and debt restructuring efforts, which may have implications for creditors and investors in the region.

Source: Original reporting via IMF Management