HARARE – Zimbabwe clears first IMF programme review as Fund commends reforms but flags economic risks
Zimbabwe has successfully completed the first review of its 10-month Staff-Monitored Programme (SMP) with the International Monetary Fund (IMF), marking a significant milestone in the country’s efforts to restore macroeconomic stability and rebuild confidence with international creditors, according to NewZwire.
The IMF said Zimbabwe met all of its end-March quantitative performance targets under the programme, including those relating to the fiscal balance, international reserves and limits on external borrowing. The Fund also confirmed that the Government had delivered on the structural reform benchmarks scheduled for March and June.
According to the IMF, the successful review represents an important step in strengthening Zimbabwe’s policy credibility as the country pursues arrears clearance, debt restructuring and broader economic re-engagement with the international financial community.
“The completion of the first review marks an important step in consolidating recent stabilisation gains and strengthening Zimbabwe’s track record of policy implementation in support of arrears clearance, debt restructuring, and re-engagement with the international community,” the IMF said.
The Staff-Monitored Programme, which commenced in May, is designed to assess Zimbabwe’s implementation of agreed economic reforms through regular IMF monitoring. While the programme does not provide direct financial assistance, it is widely regarded as a critical benchmark for rebuilding trust with multilateral lenders and creditors.
Despite the positive assessment, the Fund identified shortcomings in the implementation of social expenditure commitments. Although fiscal and monetary objectives were achieved, Zimbabwe fell short of its target for protected social and priority spending.
The IMF said the missed benchmark highlighted the importance of improving budget execution to ensure vulnerable communities receive adequate and timely support.
“The missed target underscores the need to improve budget execution and ensure timely support to vulnerable groups,” the Fund said.
The review comes against the backdrop of a stronger-than-expected economic performance in 2025, when Zimbabwe’s economy expanded by 8.3%, supported by a recovery in agricultural production, robust mining activity and elevated international gold prices.
Looking ahead, however, the IMF expects economic growth to moderate. Gross domestic product is projected to slow to 5% in 2026 before averaging about 4.2% over the medium term as the economy returns to a more sustainable growth trajectory.
While maintaining a broadly favourable outlook, the Fund cautioned that significant external risks remain.
“The outlook remains favourable, but risks are tilted to the downside,” the IMF said, pointing to the possibility of another severe El Niño-induced drought and escalating geopolitical tensions in the Middle East as potential threats to economic stability.
According to NewZwire, the successful completion of the first programme review is expected to strengthen Zimbabwe’s engagement with international financial institutions and creditors as authorities continue implementing reforms aimed at restoring macroeconomic stability and unlocking future debt resolution opportunities.
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