The International Monetary Fund has praised Zimbabwe’s economic reforms, highlighting significant progress in reducing central bank financing, improving fiscal discipline, and stabilizing the exchange rate. However, the Fund cautioned that the country’s large debt arrears, estimated at about 12.2 billion dollars to institutions including the African Development Bank, the World Bank, and other bilateral creditors, continue to block access to new IMF financing.
Abebe Aemro Selassie, Director of the IMF’s African Department, told Reuters that while Zimbabwe is showing renewed policy commitment through a structured dialogue process, the outstanding arrears remain the main obstacle to direct financial support. The country is currently seeking 2.6 billion dollars in bridge financing by mid-2026 as part of its strategy to clear arrears and restructure its debt.
In its 2025 Article IV consultation, the IMF noted that Zimbabwe’s economy is rebounding, with growth projected at around 6 percent this year. This recovery is supported by strong agricultural output, steady remittances, and high global gold prices. Still, fiscal pressures are building, and limited access to external financing continues to constrain the economy.
An IMF mission is expected in Harare at the end of October to discuss a possible Staff-Monitored Program, which would track Zimbabwe’s reform progress. Analysts say that clearing debt arrears will be critical for restoring investor confidence and regaining access to concessional international lending, according to Reuters and IMF.org.
