Zimbabwe has recorded encouraging economic gains midway through its 10-month Staff-Monitored Program (SMP) with the International Monetary Fund (IMF), but sustaining the progress will depend on stronger public financial management, transparent governance and a credible resolution of the country’s unsustainable debt burden.
The programme, approved in April 2026, is designed to help Zimbabwe establish a track record of economic reforms and rebuild confidence among international creditors and development partners as the government pursues broader international re-engagement.
In its assessment of performance through June 2026, the IMF reported stronger-than-expected external balances and a primary fiscal surplus, alongside improved macroeconomic stability. Economic growth is projected at approximately 5 per cent in 2026, while consumer inflation is expected to fall to around 4 per cent. The ZiG has also remained broadly stable, supported by tight monetary policy.
These improvements offer some relief to households and businesses grappling with years of economic uncertainty. Lower inflation, if sustained, could help protect household purchasing power, improve price predictability for traders and manufacturers, and create a more favourable environment for investment, production and employment.
However, the gains have yet to fully translate into lasting improvements in ordinary people’s livelihoods. The central governance challenge is whether the government can convert macroeconomic stability into better public services, reliable infrastructure, stronger job creation and more effective social protection.
The IMF has cautioned that weaknesses in budget execution and fiscal transparency remain unresolved. These concerns raise questions about how public resources are allocated, whether approved expenditure reaches intended programmes and how effectively government spending delivers tangible benefits to communities.
Across most households facing pressure on incomes and access to essential services, protecting social expenditure is particularly important. Fiscal discipline should not come at the expense of healthcare, education, social protection and other basic services. Rather, improved revenue management and spending accountability should help ensure that limited public resources produce measurable social and economic returns.
Continue reading with Eandel
Subscribe to unlock the complete story and receive your subscriber benefits.
