HARARE, Jul.28(NewsDay Live)– The International Monetary Fund (IMF) says Zimbabwe has successfully completed the first review under its 10-month Staff-Monitored Programme (SMP), but urged authorities in Harare to maintain fiscal discipline and accelerate governance reforms.
In a statement released Monday, the IMF said its management had approved the completion of the first review following strong implementation of the programme through the end of March 2026.
“Completion of the review marks an important step in consolidating recent stabilization gains and strengthening Zimbabwe’s track record of policy implementation in support of arrears clearance, debt restructuring, and re-engagement with the international community,” the IMF said.
The fund said Zimbabwe’s economy had remained resilient despite a more challenging global environment, with economic growth reaching 8.3% in 2025, supported by improved agricultural output, robust mining activity and favourable gold prices.
According to the IMF, inflation has remained low due to tight monetary conditions and relative exchange rate stability.
The IMF projected Zimbabwe’s economy to grow by 5% in 2026 before moderating to 4.2% over the medium term, while inflation is expected to remain in single digits if current macroeconomic policies are maintained.
However, the IMF warned that risks to the outlook remain tilted to the downside, citing the possibility of a major El Niño weather event and a renewed conflict in the Middle East.
The fund said Zimbabwe met all end-March quantitative targets under the programme, including those related to the primary budget balance, net international reserves, Reserve Bank of Zimbabwe lending to the non-financial public sector, limits on external borrowing and monetary base growth.
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It added that most indicative targets had also been achieved, although the target for protected social and priority spending was missed.
“The end-March and end-June structural benchmarks were completed, and the authorities are making progress toward subsequent reform commitments,” the statement said.
The IMF said the programme supports government’s commitment to prudent fiscal management, noting that the primary budget balance was stronger than anticipated due to robust revenue collection.
It urged authorities to maintain expenditure within the approved 2026 National Budget while saving additional revenues to build buffers for possible food security requirements in 2027.
The fund also called for stronger management of fiscal risks, including tighter controls on gold delivery incentives, improved public financial management and measures to prevent the accumulation of new domestic arrears.
On monetary policy, the IMF commended the Reserve Bank of Zimbabwe for maintaining a tight policy stance that has helped contain inflation and ease pressure on the foreign exchange market.
It welcomed the operationalisation of the ZiG-denominated term deposit facility and encouraged authorities to continue reforms aimed at developing more market-based monetary instruments and liberalising the foreign exchange market.
The IMF further stressed the importance of strengthening governance, fiscal risk management and social protection systems, saying improvements in budget execution would be necessary to ensure vulnerable groups receive timely support.
It added that continued implementation of reforms under the Staff-Monitored Programme would strengthen Zimbabwe’s efforts to clear external arrears, restructure debt and advance its re-engagement with international financial institutions and development partners.
