IMF Staff Reaches Staff-Level Agreement with Zimbabwe on the First Review under the Staff-Monitored Program
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
Black News - IMF staff and the Zimbabwean authorities have reached a staff-level agreement on the first review under the 10-month Staff-Monitored Program approved in March 2026.
- Program implementation through end-March was broadly satisfactory, with all quantitative targets and structural benchmarks met, while most indicative targets were observed.
- Maintaining disciplined policy execution, protecting social spending, advancing monetary and exchange rate reforms, and strengthening governance and fiscal risk management will be essential to entrench macroeconomic stability and support Zimbabwe’s re-engagement efforts.
Washington, D.C.: An IMF team led by Mr. Wojciech Maliszewski visited Harare from June 9 to June 18, 2026, to conduct discussions for the first 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 first review under Zimbabwe’s 10-month Staff-Monitored Program. The agreement is subject to approval by IMF Management. Completion of the review marks an important step in consolidating recent stabilization gains and building a track record toward arrears clearance, debt restructuring, and re-engagement with the international community.
“Program implementation through end-March 2026 was satisfactory. All quantitative targets were met, including those on the primary budget balance, net official international reserves, RBZ credit to the nonfinancial public sector, new external non-concessional borrowing, and ZiG monetary base growth. All indicative targets were met except one—the indicative target on protected social and priority spending was missed. The end-March structural benchmark on improving taxpayer register quality through quarterly monitoring and reporting of filing and payment compliance by new VAT and PAYE registrants was met. The authorities are also making progress toward the end-June and end-September 2026 structural benchmarks.
“Zimbabwe’s economy has remained resilient despite a more difficult external environment, including spillovers from the Middle East conflict through higher fuel and fertilizer prices, transport costs, and shipping disruptions. Growth was strong in 2025 at 8.3 percent, and this momentum continued in early 2026, supported by a rebound in agriculture, strong mining activity, and favorable gold prices. Real GDP growth is projected at about 5 percent in 2026. Inflation has remained low, notwithstanding higher energy prices, reflecting tight monetary conditions and relative exchange rate stability, and is projected to average about 5.1 percent in 2026. The current account in 2026 is expected to remain in surplus, supported by mining and agricultural exports and remittance flows, contributing to a continued increase in gross international reserves. Looking ahead, growth is expected to moderate to 4.2 percent in 2027 under the baseline, with inflation remaining in single digits. However, if the projected El Niño materializes, growth could moderate further to the 2–3 percent range, with additional downside risks from a stronger-than-expected El Niño and escalation of the Middle East war.
“Fiscal performance through March was stronger than expected, supported by robust revenue collection and conservative budget execution. Staff welcomes 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. Staff also welcomes commitments to contain fiscal risks from gold delivery incentives, including by assessing their continued relevance in the 2027 national budget and limiting payments this year. Strengthening budget execution, commitment controls, public financial management, and domestic arrears clearance will be critical to prevent new arrears and safeguard fiscal credibility.
“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. Staff welcomes the operationalization of the ZiG-denominated term deposit facility as part of a gradual shift toward more market-based instruments. Over time, reducing reliance on non-negotiable certificates of deposit would help strengthen monetary transmission and support domestic money market development. Staff also welcomes the authorities’ plans to develop a comprehensive strategy to further liberalize the foreign exchange market and reform the FX intervention framework.
“Structural reforms remain essential to consolidate stabilization gains, strengthen public confidence, and support more inclusive growth. Staff welcomes the authorities’ commitment to strengthening social protection systems, while the missed indicative target on protected social and priority spending underscores the need to improve budget execution and ensure timely support to vulnerable groups. Continued progress in public financial management, governance, and fiscal risk management will also be important to reinforce transparency, accountability, and confidence in the authorities’ policy framework.
“Resolving Zimbabwe’s external arrears and restoring debt sustainability remain central to the authorities’ re-engagement agenda. Staff welcomes efforts to advance discussions with external partners on a credible arrears-clearance and debt-resolution strategy. Continued progress under the SMP, debt data reconciliation, and a clear strategy for creditor engagement will be important to support the next stages of the re-engagement process.
“The IMF mission team met with Minister of Finance, Economic Development and Investment Promotion Hon. Professor Mthuli Ncube, 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.”
