FINANCE, Economic Development and Investment Promotion minister Mthuli Ncube says Treasury is geared to implement tough budget controls under the International Monetary Fund (IMF) Staff-Monitored Programme (SMP) to boost confidence in the economy.
Ncube said this after incoming African Development Bank (AfDB) country manager for Zimbabwe, Eyerusalem Fasika, paid him a courtesy call on Monday.
SMP is an informal agreement between a country and the IMF.
Under the programme, the country agrees to follow a set of economic policies over an agreed period.
The most recent SMP in Zimbabwe ran from 2019 to 2020.
“Our collaboration with AfDB and other development partners is crucial as we implement policies that stabilise the economy, manage debt effectively and attract much-needed investment,” Ncube said.
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The IMF SMP allows countries to implement reform measures under IMF guidance without formal financial assistance.
While Zimbabwe does not owe the IMF, it is locked out of cheaper funding from institutions such as AfDB and the World Bank because it is in arrears.
The country’s total debt stands at US$23,4 billion, of which US$7,7 billion is in arrears.
With no access to cheap, long-term loans, the government is forced to fund infrastructure directly from the budget.
Fasika said SMP would support Zimbabwe in restoring fiscal discipline while providing a platform for dialogue with international creditors.
“The programme is a clear signal to the international community that Zimbabwe is taking decisive steps to stabilise its economy and address structural fiscal challenges,” she said.
“Through these efforts, the government is positioning itself to tackle debt arrears and lay a foundation for sustainable growth.”
Fasika expressed support for Zimbabwe’s Arrears Clearance and Debt Resolution Roadmap, which is intended to restore access to international financing.
“We fully endorse the roadmap as a practical framework to resolve arrears and strengthen the country’s credibility with global partners,” she said.