Zimbabwe has passed the first review of its 10-month Staff-Monitored Programme (SMP) with the International Monetary Fund (IMF), after meeting key fiscal, monetary and structural reform targets, in a boost to the country’s debt clearance and re-engagement efforts.
Although the IMF programme does not provide funding, it is a key benchmark for Zimbabwe as it seeks to restore relations with international lenders and restructure its debt.
In a statement, on Monday, the IMF said, “completion of the 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 Fund said Zimbabwe met all end-March quantitative targets, including those on the budget balance, international reserves and external borrowing, while also completing structural reform benchmarks for March and June.
It said the progress would help advance discussions with development partners and support the next phase of Zimbabwe’s re-engagement process.
However, the IMF noted that the Government missed its target for protected social and priority spending, despite achieving its broader fiscal and monetary goals.
“The missed target underscores the need to improve budget execution and ensure timely support to vulnerable groups,” the Fund said.
The IMF said Zimbabwe’s economy grew by 8.3% last year, supported by stronger agricultural output, robust mining activity and firm gold prices. Growth is projected to moderate to 5% in 2026 before averaging 4.2% over the medium term.
While maintaining a positive outlook, the Fund warned that risks remain tilted to the downside, citing the potential impact of a severe El Niño drought and renewed conflict in the Middle East on economic growth.
