Zimbabwe passes first IMF program review, but economic risks persist

Zimbabwe has long been marked by episodes of hyperinflation, notably in 2008 and again in 2019-2020, which eroded confidence in its currency and weakened its relations with international financial institutions. The introduction of the ZiG in 2024 aimed to stabilize the monetary situation, against a backdrop of still-distressed external debt and arrears to several creditors. According to an AllAfrica dispatch, the International Monetary Fund (IMF) has completed the first review of a ten-month Staff-Monitored Programme (SMP) agreed with Harare. The institution projects single-digit inflation to continue, while warning that economic risks remain. The source does not specify the names of the IMF officials cited, the exact inflation figures, or the start date of the program. For Harare, this validation is a signal of credibility that could be useful in negotiating with creditors and attracting investors, without implying any direct financial disbursement, as an SMP is an unfunded program. From an analytical perspective, the challenge lies in the government's ability to turn this technical approval into lasting structural reforms (fiscal discipline, exchange rate management, arrears clearance), while regional context and commodity volatility continue to weigh on southern African economies.