Mnangagwa meets IMF delegation amid worsening economic crisis

President Emmerson Mnangagwa yesterday held a high-level meeting with an International Monetary Fund (IMF) delegation currently in Zimbabwe for an Article IV Consultation, as the country grapples with deepening economic turmoil marked by an artificial exchange rate, a debilitating liquidity crunch, and a fragile local currency.

The IMF mission, led by Wojciech Maliszewski, is in the country to assess Zimbabwe's economic performance and policy direction. The consultation comes at a time when Zimbabwe's economic indicators are flashing red despite claims of stability by monetary authorities. The IMF team is expected to meet with Finance Minister Mthuli Ncube, Permanent Secretary George Guvamatanga, Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu, Chief Secretary to the President and Cabinet Martin Rushwaya, and other senior government and central bank officials. They will also hold consultations with Members of Parliament, civil society, the private sector, and international development partners.

The visit forms part of the IMF's regular Article IV Consultations, which provide a comprehensive assessment of member countries' economic health. This mission will also evaluate progress on the Staff Monitored Programme (SMP) - a precursor to any debt restructuring or financial support - and examine Zimbabwe's broader macroeconomic policies.

While the Reserve Bank insists the newly introduced Zimbabwe Gold (ZiG) currency is performing well, economic realities on the ground paint a far grimmer picture. Companies are collapsing under the weight of cash shortages, unemployment is rising, and inflation - though suppressed on paper - continues to erode household incomes. Mushayavanhu's tight monetary policy has been credited with reining in headline inflation, but critics argue that it has done so at the cost of liquidity and economic growth.

"The economy is being choked by excessive efforts to maintain a rigid exchange rate," an economist familiar with the consultations said. "The ZiG's apparent stability is not organic; it's imposed through strict controls and a deliberate squeeze on money supply. This is unsustainable and harmful."

Since the introduction of the ZiG in April 2024, the currency has struggled to gain public confidence and utility in daily transactions. Analysts say the combination of high debt overhang, rigid monetary controls, and deteriorating economic conditions has only worsened poverty levels, driven mass migration, and destabilised the private sector.

Speaking in a video released by the Presidential Communications Department, Finance Minister Ncube acknowledged the gravity of the situation. "The IMF Mission has come here for two main purposes," he said. "One is to conduct the Article IV Consultation and assess the state of the economy - to talk about our development trajectory. The second is to discuss the Staff Monitored Programme, which is a critical step in our arrears clearance roadmap. We've also been discussing how to maintain the fiscal discipline we initiated and ensure expenditure remains within our means."

The IMF last conducted an Article IV mission in Zimbabwe earlier this year, from 30 January to 13 February. Discussions then centred on macroeconomic stability and the need for structural reforms, including the resolution of longstanding debt arrears, which have blocked Zimbabwe's access to international financing.

As the IMF team continues its mission in Harare, pressure is mounting on the government to adopt more sustainable policies that balance inflation control with economic growth and public welfare. For now, however, the country remains stuck in a cycle of suppressed figures, failing businesses, and eroding livelihoods - with little relief in sight.