Online Reporter
Harmony Agere
THE International Monetary Fund (IMF) has cited solid implementation of agreed reforms and strong economic performance in its first review of Zimbabwe’s 10-month Staff-Monitored Programme (SMP).
The fund said completion of the review represents a significant milestone in Zimbabwe’s efforts to consolidate macroeconomic stability, strengthen its policy implementation and advance the country’s arrears clearance, debt restructuring and international re-engagement agenda.
In a statement issued by IMF communications department press officer Mr Kwabena Akuamoah-Boateng, the fund said Zimbabwe’s economy had remained resilient despite a challenging global environment.
“Growth remained strong in 2025 at 8,3 percent and continued into early 2026, supported by improved agricultural production, robust mining activity and favourable gold prices,” reads the statement.
“Inflation has remained low, reflecting tight monetary conditions and relative exchange rate stability.”
The fund projects Zimbabwe’s economy to grow by 5 percent in 2026 and 4,2 percent over the medium term, while inflation is expected to remain in single digits under continued prudent macroeconomic policies.
However, it cautioned that risks remain.
“The outlook remains favourable, but risks are tilted to the downside,” reads the statement.
According to the IMF, Zimbabwe recorded strong implementation of the Staff-Monitored Programme, 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.”
The fund added that most indicative targets were also achieved, although spending on protected social and priority programmes fell short of the agreed benchmark.
The IMF commended the Government’s fiscal discipline, noting that the primary budget balance outperformed expectations due to robust revenue collection.
“The programme 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,” reads the statement.
On monetary policy, the IMF welcomed the Reserve Bank of Zimbabwe’s continued tight policy stance, saying it had helped contain inflation and stabilise the foreign exchange market.
“Staff welcomes the operationalisation of the ZiG-denominated term deposit facility as part of a gradual shift towards more market-based instruments,” the statement said.
The IMF also praised Zimbabwe’s commitment to structural reforms, including improvements in public financial management, governance, fiscal risk management and social protection systems.
