By Kudzaishe Chimonera
Zimbabwe and the International Monetary Fund (IMF) have reached a staff-level agreement on a new Staff-Monitored Programme (SMP), a step the authorities say could help entrench economic stability and support the country’s efforts to re-engage with international lenders.
The 10-month programme is designed to strengthen fiscal discipline, tighten monetary management and improve governance as Zimbabwe seeks to build a credible reform record that could pave the way for debt restructuring and the clearance of arrears.
An IMF mission led by Wojciech Maliszewski held talks with government officials in Harare from 28 January to 6 February which resulted in the agreement. It is still subject to approval by IMF management.
“We are pleased to announce that the Zimbabwean authorities and the IMF team have reached a staff-level agreement on the key economic policies and reforms that could underpin a Staff-Monitored Program,” Maliszewski said at the end of the discussions.
The IMF said Zimbabwe’s economic recovery had continued, supported by tight monetary policy and improved fiscal discipline.
Growth in 2025 exceeded initial projections, driven largely by agriculture and mining, while inflation fell to 4.1% in January 2026 amid greater exchange-rate stability.
The proposed programme seeks to further strengthen fiscal and monetary frameworks, improve the functioning of the foreign exchange market and advance governance reforms aimed at supporting inclusive growth.
The IMF is projecting economic growth of about 5% in 2026, with inflation expected to remain in single digits. Authorities are also expected to maintain prudent budget execution and tighten expenditure controls to avoid the build-up of new domestic arrears.
“The proposed 10-month program seeks to consolidate recent stabilization gains, further strengthen fiscal and monetary policy frameworks, improve foreign exchange market functioning, and advance governance reforms,” Maliszewski said.
The programme also places emphasis on improving public financial management through better cash planning, stronger budget controls and steps towards establishing a Treasury Single Account. Governance reforms will include greater transparency at state-owned enterprises under the Mutapa Investment Fund including the publication of audited financial statements.
The IMF added that the SMP will also support social protection measures including the full operationalisation of the Zimbabwe Social Registry to improve the targeting of assistance to vulnerable households.
The staff-monitored arrangement forms part of Zimbabwe’s broader strategy to re-engage the international community under the Structured Dialogue Platform with officials hoping sustained reforms could unlock talks on arrears clearance, debt restructuring and future concessional financing.
