The Ministry of Finance, Economic Development and Investment Promotion has announced that Zimbabwe is working toward reaching a Staff Level Agreement on a Staff Monitored Program (SMP) with the International Monetary Fund (IMF), which is expected to be finalised by the end of June 2025.
In a statement released on Monday evening, the Ministry said government officials, including Finance Minister Mthuli Ncube, hosted a side event on Zimbabwe’s Arrears Clearance and Debt Resolution Process.
The session took place on the sidelines of the African Development Bank Group’s Annual Meetings in Abidjan earlier on Monday.
The session provided an update on the country’s ongoing arrears clearance and debt resolution efforts, highlighting the progress achieved so far and the key challenges that remain.
It also outlined the African Development Bank’s role and support in this process since December 2022, as well as the next steps to be taken.
According to the Ministry, one of the central challenges facing Zimbabwe is the accumulation of public debt arrears, which has constrained access to external financing.
This financial limitation has hindered the country’s ability to meet its National Development Strategy 1 (NDS1) targets and progress toward the Sustainable Development Goals under Vision 2030.
Despite these challenges, the Ministry highlighted notable progress in implementing reforms under the Structured Dialogue Platform (SDP). These include Economic Growth and Stability Reforms, as well as Governance Reforms.
Under Economic Growth and Stability Reforms, progress was noted in the following areas: advancing toward a Staff Level Agreement with the IMF on the SMP; transferring legacy debt from the Reserve Bank of Zimbabwe’s quasi-fiscal operations (QFOs) to the Treasury; and introducing Zimbabwe Gold (ZWG) as part of a new exchange rate regime based on the Willing Buyer, Willing Seller (WBWS) model.
In terms of Governance Reforms, the Ministry reported enhanced transparency and accountability in the public sector through the automation of procurement, tax, and revenue management systems.
It also noted progress in strengthening the fight against corruption, with several key bills expected to be enacted, and the operationalisation of the Zimbabwe Independent Complaints Commission.
The Ministry also highlighted key developments in land tenure and debt resolution. On land reform, it underscored the launch of the Farm Title Deed Programme for both A2 and A1 farmers, alongside an allocation of US$35 million in the 2024 Budget to compensate former farm owners.
Regarding debt resolution, the Ministry revealed a proposal to establish a fourth pillar focused specifically on debt issues, aimed at bringing Zimbabwe’s creditors together throughout the implementation of the government’s roadmap.
The roadmap prioritises clearing arrears with International Financial Institutions (IFIs), securing bridge financing, and ultimately achieving debt sustainability.
As part of its commitment to this plan, the government has so far paid US$114.7 million toward settling its Public and Publicly Guaranteed (PPG) external debt obligations.
Back to top