IMF Reaffirms Support for Zim, Calls for Policy Overhaul

The International Monetary Fund (IMF) has reaffirmed its support for Zimbabwe’s reform agenda but said meaningful financial aid remains off the table until the country addresses its staggering debt burden and external arrears.

The IMF’s decision followed the conclusion of its 2025 Article IV consultation led by mission chief Wojciech Maliszewski who outlined critical reforms Zimbabwe must undertake before the Staff Monitored Programme (SMP) can begin.

“In the context of the requested SMP, IMF staff stands ready to resume discussions in due course once decisive steps have been taken by authorities to address the key policy issues highlighted by the mission,” said Maliszewski.

Central to Zimbabwe’s reform agenda is the shift to a single-currency regime by 2030. While the IMF supports the transition, it cautioned that the monetary and foreign exchange framework must be strengthened in line with its technical guidance.

“This should be complemented by measures to enhance the demand for ZiG in the domestic economy—most notably, increasing the share of Treasury’s operations [revenues and expenditures] in ZiG,” Maliszewski said.

He urged authorities to provide more clarity on the operational implications of the mono-currency system to reduce uncertainty in financial markets.

The IMF recommends allowing dual currency-denominated deposits while limiting mono-currency use to domestic transactions.

Fiscal consolidation remains another major hurdle. The IMF mission stressed the importance of closing a significant fiscal gap for 2025 using sustainable and non-inflationary measures.

“The mission recommends improving the functioning of the WBWS market through a more transparent price-setting mechanism and by gradually replacing surrender requirements with a requirement to convert export proceeds directly into the market through authorised dealers,” said Maliszewski.

The IMF also called for governance improvements at the Mutapa Investment Fund, aligning it with international standards in oversight and transparency.

“In this context, the authorities’ re-engagement efforts, through the Structured Dialogue Platform, are key for attaining debt sustainability and gaining access to concessional external financing,” he added.

The International Monetary Fund (IMF) has reaffirmed its support for Zimbabwe’s reform agenda but said meaningful financial aid remains off the table until the country addresses its staggering debt burden and external arrears.

The IMF’s decision followed the conclusion of its 2025 Article IV consultation led by mission chief Wojciech Maliszewski who outlined critical reforms Zimbabwe must undertake before the Staff Monitored Programme (SMP) can begin.

“In the context of the requested SMP, IMF staff stands ready to resume discussions in due course once decisive steps have been taken by authorities to address the key policy issues highlighted by the mission,” said Maliszewski.

Central to Zimbabwe’s reform agenda is the shift to a single-currency regime by 2030. While the IMF supports the transition, it cautioned that the monetary and foreign exchange framework must be strengthened in line with its technical guidance.

“This should be complemented by measures to enhance the demand for ZiG in the domestic economy—most notably, increasing the share of Treasury’s operations [revenues and expenditures] in ZiG,” Maliszewski said.

He urged authorities to provide more clarity on the operational implications of the mono-currency system to reduce uncertainty in financial markets.

The IMF recommends allowing dual currency-denominated deposits while limiting mono-currency use to domestic transactions.

Fiscal consolidation remains another major hurdle. The IMF mission stressed the importance of closing a significant fiscal gap for 2025 using sustainable and non-inflationary measures.

“The mission recommends improving the functioning of the WBWS market through a more transparent price-setting mechanism and by gradually replacing surrender requirements with a requirement to convert export proceeds directly into the market through authorised dealers,” said Maliszewski.

The IMF also called for governance improvements at the Mutapa Investment Fund, aligning it with international standards in oversight and transparency.

“In this context, the authorities’ re-engagement efforts, through the Structured Dialogue Platform, are key for attaining debt sustainability and gaining access to concessional external financing,” he added.