• Ten-month program aims to strengthen macroeconomic management

• No financing attached, but key step toward re-engagement

• Progress hinges on debt clearance and policy credibility

The International Monetary Fund (IMF) has approved a ten-month Staff-Monitored Program (SMP) for Zimbabwe, according to a statement released on April 16.

The program, which does not include financing, is designed to consolidate recent stabilization gains, strengthen macroeconomic management, and support the government’s efforts to rebuild relations with the international community.

It will focus on maintaining low and stable inflation, easing pressure on the foreign exchange market, and reinforcing the monetary policy framework. This includes promoting the use of the local currency, the Zimbabwe Gold (ZiG), improving policy tools, and enhancing the efficiency of the foreign exchange market.

The move comes as Zimbabwe shows signs of economic recovery after a prolonged crisis that began in the early 2000s, weakened key sectors, and led to a suspension of debt repayments to international creditors. The recent rebound has been supported by tight monetary policy, stronger fiscal discipline, and favorable external conditions.

Growth picked up in 2025, driven by strong performances in agriculture and mining, particularly amid high gold prices and a recovery in platinum and lithium production.

However, Zimbabwe remains cut off from international financing due to large arrears, limiting access to credit lines and constraining foreign investment inflows.

The SMP is intended to help the country build a credible track record of policy implementation, paving the way for a potential IMF-supported program and supporting broader efforts to clear arrears and normalize relations with international partners.

Lydie Mobio