Zimbabwe’s economy has strengthened to a level where it can confidently undertake reforms under an International Monetary Fund (IMF) Staff Monitored Programme (SMP), with Treasury emphasising that the upcoming reform plan will be domestically driven and built on enhanced economic stability.
The country is laying the groundwork to support future applications for financial assistance from global lenders, as it pushes to clear long-standing arrears and unlock fresh lines of credit to revive economic growth. Zimbabwe’s external public debt stands at an estimated US$13.2 billion, weighed down by about US$6 billion in arrears, rendering the debt position unsustainable.
Because of these arrears and a classification of being in “debt distress”, Zimbabwe remains unable to borrow from key institutions such as the IMF, World Bank, and African Development Bank (AfDB). The country has effectively been shut out of international capital markets since defaulting on its obligations in the early 2000s.
An SMP is an informal framework in which IMF staff monitor a government’s reform programme, helping countries strengthen policy credibility, stabilise their macroeconomic environment and prepare for possible future financial support. The arrangement is often used by countries in debt distress or with limited borrowing options to demonstrate commitment to credible reforms.
Authorities believe the forthcoming SMP could help Zimbabwe regain access to concessional financing by building a solid reform record, strengthening governance and enhancing fiscal discipline. Unlike previous attempts, which were disrupted by climatic shocks and policy inconsistencies, the new programme is expected to rest on a firmer economic foundation.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the defining strength of the new SMP is that it is anchored entirely in Zimbabwe’s own policy commitments, rather than externally imposed conditions.
“A lot of work has been done for this programme. The foundation is a lot stronger this time around — it is different,” he said. “We are now in single-digit inflation, with no drought or cyclones, and strong agricultural prospects for 2026 following a solid 2025 in which we expect 6.6 percent growth.”
He added that all planned reform measures are already captured in the national budget and the National Development Strategy 2 (NDS2), underscoring full Government ownership of the process.
“There is nothing in the policy matrix that is not already in our budget or the NDS2. These are our policies,” he said, noting that the IMF’s role will mainly be confirmatory and technical, supporting refinement where necessary.
Addressing public expectations on whether completing the SMP guarantees access to new funding, Minister Ncube cautioned that there are no automatic assurances.
“There are no guarantees,” he said. “What matters is building a track record. Credibility is the real currency. Investors and lenders want consistency and performance over time.”
He stressed that successful implementation of the SMP would improve Zimbabwe’s chances of attracting capital and negotiating debt relief.
Supporting this view, Permanent Secretary in the Ministry of Finance, Mr George Guvamatanga, said timing is a major factor distinguishing the current programme from earlier efforts.
“In the past, we attempted these reforms during droughts, cyclones, and the immediate post-Covid period,” he said. “This time, the environment is stable, agriculture is strong, and conditions across the economy have improved.”
He also noted that favourable global commodity prices have further boosted Zimbabwe’s economic prospects.
With improved macroeconomic stability, stronger agricultural output, and a predictable policy environment, officials believe Zimbabwe is better positioned than ever to restore international confidence and reopen the doors to long-term concessional financing
