The IMF has praised Zimbabwe’s economic policy discipline, citing improvements in currency stability and inflation control. The comments came after a two-week IMF mission to Harare, which concluded on Wednesday.
The IMF reported that Zimbabwe’s economy is recovering from a 2024 slowdown caused by drought, with growth now forecast at 6 percent in 2025. The rebound has been driven by improved weather conditions and record-high gold prices, which have bolstered agricultural and mining output.
‘Macroeconomic stability is gradually taking hold,’ the IMF said. ‘Better climate conditions and favourable commodity prices have supported economic activity in early 2025.’
Currency stabilising, inflation easing
The IMF noted that Zimbabwe’s efforts to rein in inflation and stabilise the Zimbabwean dollar have yielded positive early results. The authorities have taken a more disciplined fiscal and monetary approach, helping to reduce market volatility.
The gold sector’s performance, combined with increased agricultural productivity, is helping to lift key indicators across the economy. However, the IMF stressed that further reform is essential.
IMF urges continued policy reforms
To consolidate current gains, the IMF has recommended the following steps:
- Tighten fiscal policy while safeguarding social spending
- Strengthen the monetary policy framework to anchor inflation expectations
- Transition to a market-driven exchange rate for long-term currency stability
‘The authorities’ policy efforts have helped stabilise the economy, but further steps are needed to consolidate gains and ensure sustained growth,’ the IMF noted in its statement.
Path open for IMF Staff Monitored Programme
Zimbabwe is not currently under an IMF loan arrangement, but the Fund signalled it is willing to re-engage.
‘The IMF stands ready to resume discussions on a Staff Monitored Program once decisive steps are taken to address outstanding policy challenges,’ the statement said.
A Staff Monitored Program (SMP) is often used as a stepping stone toward full re-engagement with international creditors.
Outlook cautiously improving
While challenges remain — including unresolved debt arrears and the need for broader structural reform — the IMF’s latest mission signals growing international confidence in Zimbabwe’s economic direction.
Credit: Africabriefing
