Zimbabwe has agreed to a 10-month Staff-Monitored Programme (SMP) with the International Monetary Fund (IMF), a key step toward debt relief and keeping the economic recovery on track.
IMF mission chief Wojciech Maliszewski said Zimbabwe’s economy grew by more than 6.6% in 2025, with growth of about 5% expected in 2026. The SMP is needed to sustain that growth, and help Zimbabwe win back lender support, he said in a statement after meetings with Zimbabwean officials.
“The programme supports the authorities’ commitment to prudent budget execution and sound expenditure control. In line with the 2026 budget, spending in the first half of the year will be anchored on a conservative revenue outlook, helping ensure that expenditure remains aligned with available resources and avoiding the accumulation of new domestic arrears,” the statement says.
What is an SMP?
The SMP is an informal agreement between a country and the IMF. Under the programme, the country agrees to follow a set of economic policies over the agreed period, and the IMF monitors how well the country is sticking to them. However, the IMF does not provide any money under an SMP. Instead, it helps build trust with international lenders, a key first step toward debt relief.
“Continued progress on reforms, together with strengthened policy credibility and improved transparency, would help lay the groundwork for more substantive discussions with international partners on arrears-clearance and debt restructuring modalities in the near term,” the IMF says. The most recent SMP in Zimbabwe ran from 2019 to 2020.
While Zimbabwe does not owe the IMF, it is locked out of cheaper funding from institutions such as the African Development Bank and the World Bank because it is in arrears. The country’s total debt stands at US$23.4 billion, of which US$7.7 billion is in arrears.
With no access to cheaper, long-term loans, the government has been forced to fund infrastructure directly from the budget. That has fuelled inflation and piled up government debts to local suppliers.
A risk on social spending
However, the SMP comes with demands for tougher budget controls, which could mean tighter social spending. The African Development Bank has previously cautioned that an SMP for Zimbabwe without accompanying financial support could be painful, arguing that funding would be needed to soften the impact.
Under the SMP, the IMF also expects greater transparency on the Mutapa Investment Fund, which houses several debt-laden state firms and is seen as a risk to recovery. “Mutapa Investment Fund will also continue refraining from contracting debt without the prior written approval of the Ministry of Finance, Economic Development and Investment Promotion,” the IMF says.
