News / National
Zimbabwe's economic reforms gain momentum with IMF deal
28 May 2025 at 10:38hrs | Views
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, has announced that Zimbabwe expects to secure a Staff Level Agreement (SLA) with the International Monetary Fund (IMF) on a Staff Monitored Programme (SMP) by June 2025.
Speaking at the African Development Bank (AfDB) Annual Meetings in Ivory Coast on Monday, Prof Ncube described this milestone as a critical step to boost foreign investment inflows and accelerate the country's economic reform agenda.
"Strong progress has been made towards reaching Staff Level Agreement on a Staff Monitored Programme with the IMF, including alignment on fiscal and foreign exchange market reforms during the IMF's Mission to Zimbabwe in January–February 2025, with finalisation expected by end of June 2025," Prof Ncube said.
The minister highlighted extensive technical discussions throughout 2024 between Zimbabwean authorities and IMF staff focusing on key prior actions. These include exchange rate reforms, fiscal consolidation aimed at avoiding reliance on monetary financing, and ensuring no new arrears accumulate.
Prof Ncube also pointed to important achievements such as the transfer of legacy debt obligations from the Reserve Bank of Zimbabwe's quasi-fiscal operations (QFOs) to the Treasury. Since this transfer, no new QFOs have been undertaken, reflecting the government's commitment to macroeconomic discipline.
Another notable reform is the launch of the Zimbabwe Gold (ZWG) currency in April 2024, whose exchange rate is now determined through a Willing Buyer, Willing Seller (WBWS) system on the interbank market, consistent with market-based reforms.
The broader arrears clearance and debt resolution efforts are anchored in a long-term reform agenda implemented via the Structured Dialogue Platform (SDP), launched in December 2022. The SDP seeks to institutionalise engagement with creditors, development partners, and stakeholders and is aligned with Zimbabwe's Vision 2030 and the National Development Strategy 1 (NDS1).
Official data shows that Zimbabwe's total Public and Publicly Guaranteed (PPG) debt stood at US$21 billion by December 2024, comprising US$12.2 billion in external debt and US$8.8 billion domestic debt. Of the external debt, US$676 million is owed to the African Development Bank, US$1.6 billion to the World Bank, and US$425 million to the European Investment Bank.
The accumulation of public debt arrears has constrained Zimbabwe's access to external financing, hindering the country's ability to meet the developmental targets outlined in NDS1 and Vision 2030.
Prof Ncube's announcement signals a hopeful path forward for Zimbabwe's economic recovery and efforts to restore sustainable fiscal health.
Speaking at the African Development Bank (AfDB) Annual Meetings in Ivory Coast on Monday, Prof Ncube described this milestone as a critical step to boost foreign investment inflows and accelerate the country's economic reform agenda.
"Strong progress has been made towards reaching Staff Level Agreement on a Staff Monitored Programme with the IMF, including alignment on fiscal and foreign exchange market reforms during the IMF's Mission to Zimbabwe in January–February 2025, with finalisation expected by end of June 2025," Prof Ncube said.
The minister highlighted extensive technical discussions throughout 2024 between Zimbabwean authorities and IMF staff focusing on key prior actions. These include exchange rate reforms, fiscal consolidation aimed at avoiding reliance on monetary financing, and ensuring no new arrears accumulate.
Prof Ncube also pointed to important achievements such as the transfer of legacy debt obligations from the Reserve Bank of Zimbabwe's quasi-fiscal operations (QFOs) to the Treasury. Since this transfer, no new QFOs have been undertaken, reflecting the government's commitment to macroeconomic discipline.
Another notable reform is the launch of the Zimbabwe Gold (ZWG) currency in April 2024, whose exchange rate is now determined through a Willing Buyer, Willing Seller (WBWS) system on the interbank market, consistent with market-based reforms.
The broader arrears clearance and debt resolution efforts are anchored in a long-term reform agenda implemented via the Structured Dialogue Platform (SDP), launched in December 2022. The SDP seeks to institutionalise engagement with creditors, development partners, and stakeholders and is aligned with Zimbabwe's Vision 2030 and the National Development Strategy 1 (NDS1).
Official data shows that Zimbabwe's total Public and Publicly Guaranteed (PPG) debt stood at US$21 billion by December 2024, comprising US$12.2 billion in external debt and US$8.8 billion domestic debt. Of the external debt, US$676 million is owed to the African Development Bank, US$1.6 billion to the World Bank, and US$425 million to the European Investment Bank.
The accumulation of public debt arrears has constrained Zimbabwe's access to external financing, hindering the country's ability to meet the developmental targets outlined in NDS1 and Vision 2030.
Prof Ncube's announcement signals a hopeful path forward for Zimbabwe's economic recovery and efforts to restore sustainable fiscal health.
Source - the chronicle
