An International Monetary Fund (IMF) team, led by Wojciech Maliszewski, concluded its visit to Harare on 18 June 2025. The mission was part of the 2025 Article IV Consultation.
At the end of the visit, Maliszewski issued a statement outlining key recommendations for Zimbabwean authorities.Zimbabwean culinary tours
The IMF urged the government to close its financing gap without printing money or accumulating more domestic arrears.
At the same time, it called for the protection of social spending and long-term fiscal discipline.
On monetary and foreign exchange policy, the IMF recommended a shift toward a stable national currency. This would require a credible monetary policy framework and a market-driven exchange rate.
To support growth, the Fund also stressed the need for structural reforms and stronger economic governance.
The IMF said fiscal policy should prioritise closing the significant 2025 financing gap using sustainable, non-inflationary sources of funding. Said Maliszewski:
Closing a substantial fiscal financing gap for 2025 in a way consistent with available sustainable and non-inflationary financing.
This would require rationalising spending and increasing the effectiveness of the authorities’ strategy to run a cash budget through better planning and stronger political commitment to control spending.
This would also require strengthening the public spending commitment control system to avoid further arrears accumulation, and close monitoring of domestic arrears (including through an audit of remaining arrears).
The 2026 Budget will be critical to establish a policy track record, and measures will be needed to close the fiscal gap in 2026.
Over the medium term, fiscal adjustment should be accompanied by fiscal-structural policies to strengthen public financial management (PFM), expenditure controls, and budget credibility.
The IMF recommended improving the functioning of the WBWS market by adopting a more transparent and market-based price-setting mechanism for monetary and foreign exchange operations. Said Maliszewski:
The mission recommends improving the functioning of the WBWS market through a more transparent price-setting mechanism and by gradually replacing surrender requirements with a requirement to convert export proceeds directly into the market through Authorised Dealers, while focusing the RBZ’s FX interventions on managing excessive volatility in the exchange rate.
Monetary policy can be enhanced by the introduction of an effective deposit facility at the RBZ, followed by fully introducing indirect market instruments and phasing out direct instruments.
In the longer term, a comprehensive package of macroeconomic, financial, and structural policies should be pursued to allow for a gradual relaxation of other Capital Flow Management Measures (CFMs) and elimination of undesirable exchange restrictions noted by the Article VIII mission.
The mission called for stronger governance of the Mutapa Investment Fund, including better reporting, audits, disclosure, and oversight. It also urged improved transparency across the public sector.
The IMF noted Zimbabwe’s plan to shift to a mono-currency system by 2030. It urged continued reforms to the monetary and FX framework, along with steps to boost domestic demand for ZiG, especially by increasing Treasury operations in the currency.Zimbabwean culinary tours
The mission also called for clearer communication on the transition, stressing that mono-currency use should apply only to domestic transactions, while bank deposits remain available in both ZiG and USD.
Maliszewski said the IMF is ready to resume SMP talks once authorities take decisive action on the key policy issues raised. The statement reads:
International reengagement remains critical for debt resolution and arrears clearance, which would open the door for access to external financing. In this context, the authorities’ reengagement efforts, through the Structured Dialogue Platform, are key for attaining debt sustainability and gaining access to concessional external financing.
The IMF maintains an active engagement with Zimbabwe and continues to provide policy advice and extensive technical assistance in the areas of revenue mobilisation, expenditure control, financial supervision, debt management, economic governance, as well as macroeconomic statistics.Zimbabwean culinary tours
However, the IMF is currently precluded from providing financial support to Zimbabwe due to its unsustainable debt situation—based on the IMF’s Debt Sustainability Analysis (DSA)—and official external arrears.
An IMF financial arrangement would require a clear path to the comprehensive restructuring of Zimbabwe’s external debt, including the clearance of arrears and a reform plan that is consistent with durably restoring macroeconomic stability, enhancing inclusive growth, lowering poverty, and strengthening economic governance.
