Zimbabwe and the International Monetary Fund (IMF) have hit a major milestone with a staff-level agreement on a 10-month Staff-Monitored Program (SMP) announced on February 6, 2026, following a mission in Harare from January 28 to February 6. This program aims to cement recent economic gains and boost macroeconomic management in the country.
Zimbabwe’s recovery is on track, with growth projected at 5% in 2026, powered by strong agriculture and mining sectors, especially gold, platinum, and lithium. Inflation dropped to 4.1% in January 2026, thanks to stable exchange rates and tight monetary policy. The current account is projected to remain in surplus of about 3.8% of GDP.
The key objectives of the SMP include, strengthening fiscal and monetary policy frameworks to maintain stability, enhancing transparency, managing fiscal risks to boost market confidence and advance Governance Reforms and promoting stronger, more inclusive growth through better governance and accountability.
The SMP supports Zimbabwe’s commitment to prudent budget execution and sound expenditure control.
Key focus areas include:
- Fiscal Revenues: Boosting tax administration and new measures to increase fiscal revenues.
- Monetary Discipline: Maintaining low inflation and stable exchange rates through continued tight monetary policy.
- Governance Reforms: Increasing transparency and accountability in public financial management, including publishing audited financial statements for state-owned enterprises under the Mutapa Investment Fund.
The program also includes social protection initiatives, such as operationalizing the Zimbabwe Social Registry (ZISO) to better target assistance to vulnerable households. The staff-level agreement is pending IMF Management approval and is a key part of Zimbabwe’s strategy to rebuild a credible reform track record and re-engage with international creditors on arrears clearance and debt restructuring.
