IMF says Zimbabwe's economy has made significant progress

The International Monetary Fund said Zimbabwe's economic progress represents a "regime change," but declined to say if or when the Washington-based lender would grant it a staff-monitored program.

Wojciech Maliszewski, who is visiting the southern African nation to conduct a regular IMF economic health update, said the conduct of the Reserve Bank of Zimbabwe, which has vowed to halt printing money to finance the government, was particularly impressive.

"The RBZ, holding liquidity positions tight, not providing monetary financing to the government. I think this is a regime shift," he told Bloomberg on Wednesday in the capital, Harare.

Still, he declined to be drawn on whether the IMF would accede to Zimbabwe's request for a SMP. The informal process could lift confidence in the country and provide a stepping stone to restructuring a $21 billion debt pile that's kept it locked out of global financial markets since it defaulted in 1999.

"What is most important for us at this stage is to make sure that when authorities enter the program, they will exit a successfully completed program," he said. "This requires a lot of effort, a lot time from both us and the authorities on the other side."

Zimbabwe, which has asked neighbouring South Africa for help in getting its debt reworked under the Group of 20 Common Framework, is trying to revive an economy wracked by years of mismanagement that's stoked hyperinflation and currency collapse.

It unveiled the gold-backed ZiG last year - its sixth attempt at creating a functioning local unit - and Maliszewski, the IMF Mission Chief for Zimbabwe since 2023, said establishing it as a fully-fledged currency would be welcome.

"Looking at the current macroeconomic situation comparing it to what the country was when I started my assignment and before, its massive progress, significant progress," he said.