By Ebi Kesiena
Zimbabwe has reached a staff-level agreement with the International Monetary Fund (IMF) on a new Staff-Monitored Programme (SMP) aimed at advancing economic reforms and strengthening macroeconomic management.
The IMF said the 10-month SMP is designed to consolidate recent stabilisation gains while reinforcing fiscal and monetary discipline. The programme focuses on prudent budget execution, improved cash and expenditure controls, sustained monetary restraint, and governance reforms to enhance transparency and better manage fiscal risks.
A Staff-Monitored Programme is an informal arrangement with the IMF that does not involve financial assistance or approval by the Fund’s Executive Board. However, it is intended to help establish a credible policy track record, which could pave the way for eventual financial support and re-engagement with international creditors.
The SMP is also expected to complement Zimbabwe’s broader strategy to clear its debt arrears and pursue debt restructuring, a key requirement for unlocking fresh financing from international partners.
Zimbabwe has previously entered into similar programmes with the IMF. The most recent, launched in May 2019, was discontinued after the authorities failed to adhere to agreed policy commitments.
The southern African nation has struggled for decades with hyperinflation, currency instability, and heavy reliance on informal dollarised markets, challenges the new programme seeks to address as part of efforts to restore economic confidence and stability.
