Zimbabwean authorities and the International Monetary Fund (IMF) have successfully reached a staff-level agreement on policies required to complete the second review under the country’s 10-month Staff-Monitored Programme (SMP). This crucial development follows an IMF mission to Harare from September 7 to 17, 2026, marking a significant step towards stabilizing Zimbabwe’s macroeconomic environment and building a track record for debt restructuring and re-engagement with international creditors.
The IMF mission chief, Wojciech Maliszewski, confirmed that program implementation through the end of June 2026 was robust, with all quantitative and indicative targets met, except for the indicative target on protected social and priority spending. The Bretton Woods institution noted that Zimbabwe’s economy expanded by 8.3% in 2025 and is projected to grow by 5% in 2026. Annual inflation significantly fell to a low single-digit rate of 2.9% in August 2026, attributed to tight monetary policy by the Reserve Bank of Zimbabwe and relative exchange rate stability.
Despite the positive strides, the IMF expressed concern over the missed target for protected social and priority spending, emphasizing the need for improved cash planning and budget execution to ensure resources reach priority programs and vulnerable households. The country’s current account is expected to remain in surplus for the remainder of the year, bolstered by strong export receipts and remittance inflows.
Key Players Involved
- International Monetary Fund (IMF): Reached staff-level agreement with Zimbabwean authorities on economic policies.
- Zimbabwean Authorities: Engaged with IMF on economic reforms and Staff-Monitored Programme.
- Wojciech Maliszewski: IMF Mission Chief who led the team in Harare.
- Reserve Bank of Zimbabwe: Maintained tight monetary policy contributing to low inflation and exchange rate stability.
Event Timeline
- September 7-17, 2026: IMF mission to Harare for the second review of the Staff-Monitored Programme.
- End of June 2026: Period for which program implementation was evaluated as robust, with most targets met.
- August 2026: Annual inflation fell to 2.9%.
- September 18, 2026: Staff-level agreement announced.
