Africa-Press. A government official said on Friday that Zimbabwe has agreed to a staff-monitored programme with the International Monetary Fund (IMF), an initial preparatory step toward closer engagement with the Fund that could later open the way to a lending programme.
George Guvamatanga, an official at the Ministry of Finance, told Reuters that the authorities are targeting a 10-month programme starting next month “if all procedures can be completed on time,” adding that “the programme aims to entrench ongoing reforms in fiscal and monetary policies.”
A staff-monitored programme is an informal arrangement that involves no direct financing and does not require approval by the IMF’s Executive Board, but it can help build a credible track record of reforms that paves the way for financial support or the restart of previous programmes.
For his part, IMF mission chief Wojciech Maliszewski said the debt management plan is intended to strengthen credibility and support re-engagement efforts, complementing a broader strategy to clear arrears and restructure debt, ultimately leading to external financing on concessional terms.
Decades of hyperinflation
Zimbabwe has suffered for decades from hyperinflation, currency volatility, and reliance on informal dollar-denominated markets.
It launched its last staff-monitored programme in May 2019, but it was later cancelled due to non-compliance with recommendations.
The Finance Ministry pointed to a recent improvement in macroeconomic indicators: annual inflation in local currency slowed to 4.1%, while dollar-denominated inflation stood at 1% year-on-year in January.
Data also showed the government had built up $1.2 billion in foreign-asset reserves by December 2025 to support Zimbabwe’s gold-backed currency (ZiG), launched in 2024.
Arrears repayment challenge
Despite the progress, repaying external arrears remains a key condition for securing new financing.
According to an IMF report in October, Zimbabwe’s outstanding external arrears totaled $7.4 billion since the early 2000s. The IMF said it cannot offer a financed programme until those arrears are cleared.
Kepler-Karst Consulting said the agreement on a staff-monitored programme is a crucial step to strengthen macroeconomic stability and build a policy-reform track record, paving the way to clear arrears and resolve the debt crisis.
