Zimbabwe has reached a staff-level agreement with the International Monetary Fund on a new reform programme aimed at consolidating recent gains in economic stability and laying the groundwork for deeper engagement with international creditors, the IMF announced.
The agreement would pave the way for a 10-month Staff-Monitored Program (SMP), an informal arrangement under which IMF staff monitor the implementation of a country’s economic reform agenda without providing financial assistance.
“We are pleased to announce that the Zimbabwean authorities and the IMF team have reached a staff-level agreement on the key economic policies and reforms that could underpin a Staff-Monitored Program,” said Wojciech Maliszewski, head of the IMF mission that held talks with Zimbabwean authorities in Harare from January 28 to February 6.
The proposed programme is aligned with Zimbabwe’s National Development Strategy 2 (NDS2) and focuses on strengthening fiscal discipline, maintaining monetary stability, improving the functioning of the foreign exchange market and advancing governance reforms to support stronger and more inclusive growth.
Staff-monitored programs are typically used when countries are not yet in a position to access IMF financing due to weak institutional capacity, domestic instability or the absence of financing assurances. While they do not require approval by the IMF’s Executive Board, they can help countries build a track record of policy implementation and potentially pave the way for future funding arrangements.
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Zimbabwe has entered into several such programmes since the late 1990s, with mixed results. The most recent SMP, launched in May 2019, was abandoned after Harare failed to meet IMF policy targets.
The new programme aims to consolidate what the IMF described as “notable progress” in macroeconomic management. According to the Fund, the reforms emphasise prudent budget execution, improved cash and expenditure controls, sustained monetary discipline and governance measures to enhance transparency and manage fiscal risks. The programme also supports efforts to strengthen social protection.
“These reforms will help advance Zimbabwe’s reengagement with the international community, particularly on arrears clearance and debt restructuring,” the IMF said.
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Zimbabwe’s economic crisis dates back to the late 1990s, following a controversial land reform programme under former president Robert Mugabe that saw thousands of white-owned commercial farms expropriated. The collapse in agricultural production, coupled with declining exports and foreign investment, led the government to resort to money printing, triggering years of hyperinflation.
In 2009, Zimbabwe abandoned its national currency and adopted the U.S. dollar, but continued isolation from international lenders and mounting arrears — estimated at nearly $13 billion owed to institutions including the World Bank, African Development Bank and Paris Club creditors — left the economy struggling to recover.
In recent years, the government has sought to stabilise the economy through tighter fiscal and monetary policies. In February 2025, the IMF said any future financial support would depend on comprehensive external debt restructuring, including arrears clearance, while continuing to provide technical assistance.
Zimbabwean authorities say these efforts are beginning to yield results. The finance ministry reported in January 2026 that inflation had fallen below 10 percent for the first time since 1997, while foreign exchange reserves backing the country’s gold-backed currency, the Zimbabwe Gold (ZiG), had risen to more than $1.2 billion.
The IMF echoed those gains, noting that economic growth strengthened in 2025, exceeding an initial forecast of 6.6 percent, supported by strong performance in agriculture and mining. Inflation fell to 4.1 percent in January 2026, helped by exchange rate stability and tight monetary conditions, while tax revenues increased on the back of improved administration.
The Fund said continued reform efforts would be critical to consolidating stability, strengthening confidence in the ZiG, rebuilding foreign exchange reserves and reinforcing institutional foundations for sustainable growth.
While the SMP does not unlock immediate funding, analysts say it represents an important step for Zimbabwe as it seeks to rebuild credibility with international lenders and investors after decades of economic turmoil.
