Tapiwanashe Mangwiro, [email protected]
THE International Monetary Fund (IMF) says the staff-level agreement reached with Zimbabwe on Harare’s economic policy framework and reforms will strengthen the milestones the country has already achieved.
The IMF said on Friday that the agreement on a Staff Monitored Programme (SMP) is central to building a credible reform track record and advancing dialogue on arrears clearance and debt restructuring under the Structured Dialogue Platform.
Zimbabwe is at present unable to borrow from the IMF and other multilateral institutions due to long-standing external debt arrears.
The country has been in default on its debt since the early 2000s, which disqualifies it from accessing new financing.
Zimbabwe’s external debt stands at about US$13,6 billion, with an estimated US$7,4 billion of this being in arrears.
The debts are owed to various international financial institutions (including the World Bank, African Development Bank and European Investment Bank) and bilateral creditors.
To get fresh credit from any of the institutions, Zimbabwe should first address its outstanding debt position.
Zimbabwe is up to date on its financial obligations directly to the IMF.
But multilateral lenders typically do not provide new credit if a country is in arrears to another multilateral institution or, in some cases, official bilateral creditors.
An SMP is a crucial, informal agreement where IMF staff monitor a country’s economic reforms to build credibility, stabilise the macroeconomy and pave the way for future financial assistance.
It serves as a diagnostic tool for countries to establish a track record of implementing sound economic policies.
The SMP aims to entrench stability through measures like reducing fiscal deficits, eliminating central bank financing of deficits and controlling inflation.
The programme acts as a stepping stone for debt restructuring, arrears clearance and unlocking concessional international financial support.
It supports crucial reforms such as improving governance, strengthening anti-corruption efforts, and enhancing public financial management.
Importantly, a successful SMP often precedes formal IMF-supported programmes (Upper Credit Tranche) or helps in securing financing from other international partners.
By implementing these reforms, countries often aim to foster sustainable, private sector-led growth while strengthening social protection measures.
In a press statement issued following discussions held in Harare from January 28 to February 6, 2026, the IMF said the proposed SMP is designed to help entrench macroeconomic stability, strengthen policy credibility, and advance the authorities’ broader re-engagement efforts towards arrears clearance and debt restructuring.
The IMF mission, led by Mr Wojciech Maliszewski, confirmed that the staff-level agreement, which remains subject to IMF management approval, reflects broad convergence on the key economic policies and reforms that would underpin a 10-month programme aligned to Zimbabwe’s National Development Strategy 2 (NDS2).
“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 Programme,” said Mr Maliszewski.
“The proposed SMP seeks to consolidate recent stabilisation gains, further strengthen fiscal and monetary policy frameworks, improve foreign exchange market functioning and advance governance reforms to support stronger and more inclusive growth.”
The IMF assessment places strong emphasis on recent macroeconomic improvements, noting that Zimbabwe’s recovery continued through 2025, supported by tight monetary policy, improving fiscal discipline and favourable external conditions.
“Zimbabwe’s economic recovery continues,” said the fund, citing growth that strengthened last year and exceeded the initial projection of 6,6 percent.
According to the IMF, agriculture and mining were the main drivers of growth, boosted by high gold prices and recovering platinum and lithium output. Inflation dynamics also improved markedly.
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