Online Reporter
Nqobile Bhebhe,Zimpapers Business Hub
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, has informed the continental economic leaders that the Treasury expects to secure a Staff Level Agreement (SLA) with the International Monetary Fund (IMF) on a Staff Monitored Programme (SMP) by June this year.
This is a major milestone anticipated to catalyse foreign investment inflows and bolster the country’s economic reform trajectory.
Speaking at the African Development Bank (AfDB) Annual Meetings in Ivory Coast on Monday, he indicated that throughout 2024, Zimbabwe engaged in extensive technical-level discussions with IMF staff, which are continuing, especially around key prior actions.
These include exchange rate reforms, fiscal consolidation to prevent reliance on monetary financing, and avoidance of new arrears.
“Strong progress [has been] made towards reaching Staff Level Agreement (SLA) on a Staff Monitored Program (SMP) with the IMF, including further alignment on fiscal and foreign exchange market reforms during the IMF’s Mission to Zimbabwe in January–February 2025, to be finalised by end of June, 2025,” said Prof Ncube in his presentation.
Prof Ncube noted that among key achievements is the transfer of legacy debt obligations from the Reserve Bank of Zimbabwe’s quasi-fiscal operations (QFOs) to Treasury. No new QFOs have been undertaken since, underscoring the commitment to macroeconomic discipline.
Another major milestone is the launch of the Zimbabwe Gold (ZWG) currency in April 2024, with the exchange rate now determined through a Willing Buyer, Willing Seller (WBWS) system on the interbank market, in line with market-based reforms.
The broader Arrears Clearance and Debt Resolution Process is underpinned by a long-term reform agenda implemented through the Structured Dialogue Platform (SDP), which was launched in December 2022.
The SDP aims to institutionalise engagement with creditors, development partners, and stakeholders. It aligns with the Government’s Vision 2030 and the National Development Strategy 1 (NDS1).
Official statistics indicate that as of end-December 2024, the country’s total Public and Publicly Guaranteed (PPG) debt stock stood at US$21 billion, comprising external debt of US$12.2 billion and domestic debt of US$8.8 billion.
Out of this multilateral debt, US$676 million is owed to the African Development Bank, US$1.6 billion to the World Bank and US$425 million to the European Investment Bank.
The accumulation of public debt arrears has limited Zimbabwe’s access to external financing needed to achieve the National Development Strategy 1 (NDS1) development objectives and the Vision 2030 Sustainable Development Goal.
