Online Reporter
Farirai Machivenyika
GOVERNMENT remains focused on maintaining a stable and prosperous Zimbabwe grounded in sustainable economic growth and sound economic governance, President Mnangagwa has said.
Writing on his X handle at the weekend, the President noted the recognition by an International Monetary Fund (IMF) team that was recently in the country of the progress Zimbabwe has made in stabilising and growing the economy.
“Zimbabwe’s economy continues to register positive strides. I welcome the IMF’s acknowledgement of our progress — driven by strong growth in mining and tourism, reduced inflation and the stabilisation of our local currency. This recognition reflects the impact of the bold reforms, fiscal discipline and stabilisation efforts we have pursued.
“We remain focused on a stable and prosperous Zimbabwe, grounded in sustainable growth and sound economic governance,” President Mnangagwa said.
An IMF staff team led by Mr Wojciech Maliszewski was in the country from June 4 to June 18, to conduct the 2025 Article IV Consultation.
At the conclusion of the mission, Mr Maliszewski re-affirmed projections that the country’s economy will experience a six percent growth as a result of policies being implemented by Government.
“Zimbabwe is experiencing a degree of macroeconomic stability despite lingering policy challenges. Following successive bouts of hyperinflation over the past few years, more disciplined policies — including halting and transferring to the Treasury the quasi-fiscal operations (QFOs) of the Reserve Bank of Zimbabwe (RBZ) and tighter monetary policy despite fiscal pressures — have helped stabilise the local currency (the ZiG) and reduce inflation.
`“Growth this year is recovering following a sharp slowdown in 2024, which was affected by a drought that lowered agricultural output by 15 percent. Electricity production also fell, and declining prices for platinum and lithium weighed on the mining output. During the first-half of 2025, better climate conditions and historically high gold prices have boosted agricultural and mining activity, strengthening the current account and contributing to the recovery, with growth projected at six percent in 2025.
“Buoyed by the growth recovery and policy measures — a reduction in VAT tax reliefs, increased fees and levies, taxation of the Covid public servant allowance, and steps to reduce smuggling — revenue ratio increased sharply to 18 percent of GDP,” Mr Maliszewski said in a statement at the end of the consultations.
To support Government’s stabilisation efforts, the IMF made several recommendations, including tightening fiscal policy while safeguarding social spending and supporting a transition to a stable national currency through an effective monetary policy framework and market-determined exchange rate policy.
Also, as part of the transition to a mono-currency environment, the ZiG is now anchored on a basket of the country’s minerals but mainly gold, with the RBZ holding 3,4 tonnes of the yellow metal in its vaults, and a target to reach five tonnes by year-end.
The IMF added that it stands ready to resume discussions with the Government on a requested Staff Monitored Programme in due course.
