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Nqobile Bhebhe, [email protected]

AN International Monetary Fund (IMF) team is in the country to discuss economic developments, financing gaps, and the Staff Monitored Programme (SMP), as Zimbabwe takes a crucial step towards debt resolution.

The delegation, led by Mr Wojciech Maliszewski, is in the country from 30 January to 13 February.

SMPs are informal arrangements between national authorities and IMF staff to monitor the implementation of the authorities’ economic programmes.

These programmes can help a country establish a track record of policy implementation. A successful SMP can pave the way for an IMF financial arrangement or for the resumption of a financial arrangement that has gone off-track.

The Government has adopted an arrears clearance, debt relief, and restructuring strategy to help resolve the country’s long-standing debt overhang, which is weighing heavily on the development agenda enunciated by the Second Republic under President Mnangagwa.

In an update, the Ministry of Finance, Economic Development and Investment Promotion said: “The SMP will support Zimbabwe’s stabilisation efforts and re-engagement with the international community. This reflects Zimbabwe’s commitment to sound economic policies and structural reforms, paving the way for future financial support and debt relief.

“A successful SMP will be key to unlocking concessional funding for Zimbabwe’s development goals. Zimbabwe is committed to implementing reforms to achieve economic stability and sustainable growth.”

In 2022, President Mnangagwa appointed African Development Bank (AfDB) President Dr Akinwumi Adesina as the Champion of the debt resolution and arrears clearance process, while former Mozambique President Joaquim Chissano was appointed as a High-level Facilitator of the process.

Arrears clearance and debt resolution are critical to unlocking fresh funding, which the country needs to finance priority development programmes.

Limited access to affordable long-term financing has also often constrained efforts by authorities to defend and maintain the stability of the domestic currency.