The International Monetary Fund (IMF) has approved Zimbabwe’s 10-month non-financing Staff-Monitored Program (SMP) aimed at consolidating the country’s recent stabilization gains, strengthen macroeconomic management, and support 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,” IMF said in a statement on Thursday.
The international institution said Zimbabwe’s economic 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,” it said, adding that “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.”
IMF said the program will support efforts to maintain low and stable inflation and preserve progress in easing foreign exchange market pressures, while also helping 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.
Zimbabwes monetary authorities recently rolled out upgraded Big5 ZiG banknotes aimed at improving durability and easing small change shortages.
The higher-quality notes co-circulate with older issues, which will be phased out, while smaller coins were reissued to combat price rounding.
The SMP supports the authorities’ commitment to prudent budget execution and sound expenditure control.
IMF said that “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.”
It noted: “Improving cash planning and public financial management is a central pillar of the program.”
“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 IMF said. – TML