IMF team set to arrive in Zimbabwe

Zimbabwe is poised to take a crucial step towards restoring its economic credibility and unlocking foreign investment, with an International Monetary Fund (IMF) delegation expected this week to finalize talks on placing the country under a Staff Monitored Programme (SMP).

The SMP is an informal arrangement whereby IMF staff collaborate with national authorities to monitor and support the implementation of agreed economic reforms. While it does not include direct financial assistance, successfully completing an SMP helps a country build a credible track record of sound fiscal and monetary policies - an essential foundation for re-engaging with international lenders and resolving outstanding debt arrears.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, speaking on the sidelines of the 2025 African Development Bank (AfDB) annual meetings, expressed optimism that the programme would be concluded soon.

"We had a side event on Zimbabwe to update stakeholders on the arrears clearance discussion process," Prof Ncube said. "Our event was warmly received by all, without exception. We ensured all relevant parties, including co-chairpersons of working groups and farmers who benefitted from compensation, were present to provide comprehensive feedback."

He further highlighted the ongoing high-level support for Zimbabwe's debt resolution process, with outgoing AfDB president Dr Akinwumi Adesina pledging to continue championing the cause, alongside former Mozambique President Joaquim Chissano, who serves as a high-level facilitator.

"The IMF will be visiting in the first week of June to analyze progress," Prof Ncube added. "Hopefully, this will be the final visit to complete the SMP and enable us to move forward with the next steps."

The SMP is expected to last up to 18 months, depending on Zimbabwe's adherence to policy implementation. Its goals include economic stabilization, supporting the newly introduced Zimbabwe Gold (ZiG) currency, and laying the groundwork for sustainable fiscal discipline and broader economic reforms.

Dr Adesina, addressing the side event, called on the international community to back Zimbabwe's request for US$2.6 billion in bridge financing to accelerate arrears clearance. He referenced support extended to other countries like Sudan and Somalia, stressing that Zimbabwe deserved similar assistance.

"Let's get that done and support these folks who have worked so hard to come this far," he said, urging donors to contribute to the African Development Fund's 17th replenishment, particularly its arrears clearance pillar.

IMF resident representative Dr Carlos Caceres told The Sunday Mail that current discussions focus on fiscal reforms to reduce reliance on central bank financing - a key driver of Zimbabwe's past inflation and currency instability. Talks are also ongoing to ensure government spending remains within budget, particularly concerning state-owned enterprises and funds.

"The Fund staff is working closely with the authorities on defining the key parameters of the SMP," Dr Caceres said. "This includes adjusting fiscal policies to avoid monetary financing and new arrears, enhancing the monetary policy framework for ZiG, and advancing governance and structural reforms."

He underscored that the SMP's main objective is to build a credible track record of sound economic policies that will pave the way for Zimbabwe's re-engagement with international creditors and eventual debt resolution and arrears clearance.

As Zimbabwe prepares to enter this important phase, the country's economic future hinges on the successful implementation of reforms and sustained support from the international community.