The IMF Management on Wednesday said that it approved the review under Zimbabwe’s 10-month Staff-Monitored Programme, citing progress in strengthening policy implementation and macroeconomic stability.
The programme does not provide financing but is intended to support Zimbabwe’s efforts towards arrears clearance, debt resolution and renewed engagement with creditors and development partners.
Zimbabwe’s economy continued expanding during the first half of 2026, supported by strong mineral exports, favourable commodity prices and resilient remittance inflows.
Annual Zimbabwe Gold inflation stood at 3.7% in September, while the exchange rate remained broadly stable.
Government revenue exceeded programme expectations, helping produce a stronger primary budget balance than initially projected.
Economic growth is forecast at 5% in 2026, with inflation expected to remain in single digits and the current account recording a surplus.
Growth is projected to slow to 3.5% in 2027 because of the anticipated effect of an El Niño-related drought on agricultural production before recovering in 2028.
A more severe drought and renewed commodity and energy-price pressures remain significant risks.
Zimbabwe met all end-June quantitative targets, structural benchmarks and continuous commitments. However, spending on protected social and priority programmes remained below target because of persistent implementation challenges.
The IMF said stronger-than-expected revenue provided an opportunity to build fiscal buffers and prepare for possible food-security and energy pressures.
The 2027 Budget should use prudent revenue and financing assumptions to prevent a lasting structural deficit while protecting social and high-impact development spending.
Stronger expenditure controls, cash planning and public financial management would also be required to prevent new arrears.
The Reserve Bank of Zimbabwe maintained an appropriately tight monetary-policy stance, supporting price and exchange-rate stability.
The IMF welcomed progress towards a more transparent foreign-exchange trading platform and a gradual transition to a market-based foreign-exchange system.
Stronger oversight of Mutapa Investment Fund and other state-owned enterprises was also recommended to contain fiscal risks.
The IMF called for audited financial statements, continued borrowing controls and publication of a detailed anti-corruption strategy.
Further progress in reconciling debt data and developing a credible, fully financed arrears-clearance plan would strengthen Zimbabwe’s re-engagement with creditors and development partners.
–IMF/ChannelAfrica–
