Zim on strong perch to implement IMF reforms

ZIMBABWE’S economy is now on a firm footing to implement reforms under an International Monetary Fund Staff Monitored Programme, with the Treasury stressing that the reform framework will be internally owned and anchored by improved economic stability. The country is currently unable to borrow from the IMF, World Bank, African Development Bank (AfDB) and other traditional international creditors primarily due to long-standing, substantial debt arrears and a classiffcation of being in “debt distress”. Zimbabwe has been locked out of international capital markets since defaulting on its obligations since the turn of the century.

An SMP is an informal agreement where IMF staff monitor a country’s economic reforms to build credibility, stabilise the macroeconomy and help create the right conditions for future financial assistance. It can help countries with constrained capacity or debt distress demonstrate commitment to policy improvements, such as fiscal discipline and governance reform. The SMP can help Zimbabwe unlock concessional funding (cheaper long-term money) by providing a formal, credible framework to demonstrate commitment to economic reforms, capacity to repay future loans and rebuilding trust with international creditors.

Unlike previous SMPs, which were implemented amid repeated economic and climatic shocks, authorities say the forthcoming programme will rest on a stronger foundation of policy consistency, macroeconomic stability and favourable timing.  This places the country in a far better position to rebuild confidence among global partners to unlock long-term concessional financing in the near future. “So, everything is aligned, a lot of work has been done for this SMP programme.

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The issue of stability (economic) is not very small. The foundation is a lot stronger this time around, it is different,” said Minister Ncube. “We are now in single-digit inflation territory, with no drought or cyclones, but better agricultural prospects in 2026, coming from a strong 2025, in which we expect growth of 6,6 percent.” He said all policy measures under the SMP were already embedded in the national budget and the National Development Strategy 2 (NDS2), underscoring the Government’s ownership of the reform agenda.

“There is nothing in the policy matrix that we can talk about that is either not in our budget or not in the NDS2. These are our own policies in the first place.” Minister Ncube said the IMF’s role is largely confirmatory and technical, helping to fine-tune reforms rather than dictate direction. “Either from their briefs, confirming what they’re doing, or helping us to fine-tune whatever we need to support in terms of implementation,” he said.

Addressing scepticism around whether completion of the SMP automatically guarantees access to bridge financing or new funding, Minister Ncube was clear that no such assurances exist, but stressed that credibility is “the real currency”. “Coming to whether the SMP guarantees funding, no, no, you cannot have guarantees,” he said.

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