IMF clears second review of Zimbabwe programme as economy remains resilient

WASHINGTON, Oct. 7, 2026 — The International Monetary Fund’s management has approved the completion of the second review of Zimbabwe’s 10-month Staff-Monitored Program, saying strong implementation has helped consolidate economic stability and improve the country’s prospects for debt resolution and international re-engagement.

The IMF said Zimbabwe met all quantitative targets and structural benchmarks through the end of June, as well as all continuous commitments. It said all indicative targets were also met except the floor for protected social and priority spending, which was affected by persistent implementation bottlenecks.

The Staff-Monitored Program is an informal agreement between a country’s authorities and IMF staff to monitor an economic programme. It does not involve IMF financing or endorsement by the IMF Executive Board.

Zimbabwe’s economy expanded during the first half of 2026, while annual inflation measured in Zimbabwe Gold, or ZiG, remained in the low single digits at 3.7% in September, according to the IMF.

The exchange rate has remained broadly stable, while strong mineral exports, favorable commodity prices and resilient remittance inflows have supported the external position. Fiscal revenue also exceeded expectations, helping produce a stronger-than-programmed primary balance.

The IMF expects Zimbabwe’s economy to grow 5% in 2026, with inflation remaining in single digits and the current account staying in surplus.

Growth is forecast to slow to 3.5% in 2027 as an expected El Niño-related drought weighs on agricultural production, before recovering in 2028.

The IMF warned that risks remain tilted to the downside, particularly if drought conditions prove more severe or commodity and energy prices come under renewed pressure.

The Fund said Zimbabwe should use stronger-than-expected revenue collection to build fiscal buffers and prepare for potential food-security and energy pressures.

The 2027 budget should be based on prudent revenue and financing assumptions to avoid creating a structural fiscal deficit while preserving funding for social programmes and high-impact development spending, the IMF said.

“Stronger expenditure controls, cash planning, public financial management, and transparent liability-management operations will be central to improving budget credibility, preventing new arrears, and translating favorable revenue performance into durable fiscal gains,” the IMF said.

The Fund also stressed the need to improve the execution of protected social and priority spending. Zimbabwean authorities have adopted a programme-by-programme financing and execution plan for the remainder of the monitoring programme.

Monetary policy has remained tight, helping support low inflation and exchange-rate stability. The IMF said the Reserve Bank of Zimbabwe should maintain the stance while improving liquidity management and developing market-based monetary instruments.

The authorities are also working toward a more transparent foreign-exchange trading platform and preparing a strategy for a gradual transition to a more market-based foreign-exchange system.

Governance and oversight of state-owned enterprises will remain another priority. The IMF called for continued adherence to borrowing controls for Mutapa and its subsidiaries, publication of audited financial statements and more systematic disclosure of state-owned enterprises’ financial positions.

The Fund also urged Zimbabwe to finalise and publish its anti-corruption strategy, supported by a clear policy matrix.

The completion of the review is part of Zimbabwe’s broader effort to establish a stronger record of economic reform as it seeks progress on arrears clearance, debt restructuring and renewed engagement with international creditors and development partners.

The IMF said further implementation of the programme, alongside improved reconciliation of debt data and development of a credible and fully financed strategy for arrears clearance and debt resolution, will be important to maintaining momentum with creditors.