Govt, IMF agree on new SMP

CLOUDINE MATOLA
The Government of Zimbabwe and the International Monetary Fund (IMF) have agreed on a new 10-month Staff-Monitored Programme (SMP), anchored on the National Development Strategy 2 (NDS2), in a renewed bid to stabilise and revive the economy, Business Times can report.
Speaking at a press conference in Harare today, IMF representative Wojciech Maliszewski said the programme is designed to consolidate recent stabilisation gains, strengthen fiscal and monetary policy frameworks, improve the functioning of the foreign exchange market, and advance governance reforms to support stronger and more inclusive economic growth.
“We are pleased to announce that the Zimbabwean authorities and the IMF team have reached a staff-level agreement on the key economic policies and reforms that could underpin a Staff-Monitored Programme (SMP), as outlined in the National Development Strategy 2 (NDS2),” Maliszewski said.
“The proposed 10-month programme seeks to consolidate recent stabilisation gains, further strengthen fiscal and monetary policy frameworks, improve foreign exchange market functioning, and advance governance reforms to support stronger and more inclusive growth.”
Maliszewski said the SMP is also intended to help Zimbabwe build a credible track record to support its re-engagement with international partners, including efforts to restructure public debt and clear arrears, while deepening policy reforms.
Zimbabwe has struggled to access international financial support due to its unsustainable public debt burden and persistent arrears.
“The SMP aims to build a reliable track record to support the authorities in their efforts to re-engage with international partners, complementing strategies for clearing arrears and restructuring debt,” he said.
“Ongoing reforms, enhanced policy credibility, and increased transparency are essential for facilitating more meaningful discussions with international partners regarding arrears clearance and debt restructuring in the near future.”
Maliszewski added that the programme reinforces the authorities’ commitment to prudent fiscal management, sound expenditure control, and budget discipline.
“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,” he said.
“To reinforce fiscal discipline and transparency, the authorities will strengthen domestic arrears monitoring through regular reporting and clearer institutional responsibilities.”
He said improvements in cash planning and public financial management (PFM) would be another critical pillar of the programme.
“Improving cash planning and public financial management is another important element of the programme. The authorities will enhance institutional arrangements for cash management and improve short-term liquidity forecasting to support more predictable and credible budget execution,” Maliszewski said.
“Over time, broader public financial management reforms—including upgrades to budget controls, improved capture of commitments, and steps toward a Treasury Single Account—will help strengthen the efficiency, transparency, and discipline of public spending.”