Harare, Zimbabwe – Zimbabwe has agreed to a staff-monitored programme (SMP) with the International Monetary Fund (IMF), marking a tentative first step toward closer engagement with the global lender and possible future financial support.
A staff-monitored programme is an informal agreement between a country and the IMF. It does not provide immediate funding but helps a country demonstrate macroeconomic stability, regain credibility with international partners, and prepare for eventual access to loans or emergency assistance.
Details of the Programme
According to George Guvamatanga, a senior official at Zimbabwe’s Ministry of Finance, authorities aim to start a 10-month programme next month, if all procedural steps are completed in time.
“The programme is to consolidate current fiscal and monetary policy reforms,” Guvamatanga said.
IMF mission chief Wojciech Maliszewski added that the SMP is designed to establish a credible track record, supporting Zimbabwe’s efforts to clear arrears and restructure debt, paving the way for access to concessional financing from international partners.
Zimbabwe’s Economic Context
Zimbabwe has faced decades of hyperinflation, currency volatility, and reliance on informal dollarized markets. Its previous SMP, launched in May 2019, failed because the country did not fully implement IMF recommendations.
Recent economic progress, however, has been notable:
Domestic currency inflation slowed to 4.1% by January 2026.
US dollar inflation fell to 1% year-on-year.
By December 2025, Zimbabwe had accumulated $1.2 billion in foreign asset reserves to back its Zimbabwe Gold (ZiG) currency, introduced in 2024.
Despite these improvements, Zimbabwe must clear arrears owed to official creditors, estimated at $7.4 billion, before it can receive funded programmes from the IMF or other lenders like the World Bank.
Legal and Strategic Support
Legal adviser Kepler-Karst Law Firm said the SMP agreement aims to strengthen macroeconomic stability and create a policy reform record that will support debt resolution.
“This agreement serves as a critical step toward arrears clearance and debt resolution,” the firm said.
Next Steps
The SMP is expected to serve as a platform for Zimbabwe to rebuild trust with international financial institutions, implement reforms, and eventually gain access to external concessional financing, which is crucial for economic recovery.
