HARARE, ZIMBABWE — The International Monetary Fund (IMF) praised Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), for stabilizing the country’s economy following years of severe inflation under the previous Zimbabwe dollar. However, the IMF also called for stronger measures to combat corruption, which it says costs Zimbabwe nearly $2 billion annually.
In its recent report, the IMF highlighted that the introduction of the ZiG has ended a period of macroeconomic instability, with inflation projected to be around 7% for the remainder of 2024 if current policies continue. This marks a significant improvement from the extreme hyperinflation seen in previous years.
Persistence Gwanyanya, a member of the Reserve Bank of Zimbabwe Board, welcomed the IMF’s recognition of the new currency’s success. “There have been notable improvements in fiscal accountability,” Gwanyanya told VOA, though he acknowledged ongoing corruption issues. “To achieve further progress, we must continue to improve accountability and reduce corruption.”
Despite the praise, the IMF’s report underscored significant weaknesses in Zimbabwe’s economic governance, particularly related to corruption. The IMF’s concerns reflect statements from Zimbabwe’s prosecutor general, Loice Matanda-Moyo, who estimated that corruption costs the country nearly $2 billion each year.
The Zimbabwe Anti-Corruption Commission is investigating a case involving the electoral commission’s alleged misuse of funds, where $1.2 million was reportedly paid for a server that could have been bought for significantly less. This money went to a company owned by an ally of President Emmerson Mnangagwa.
Economist Godfrey Kanyenze stressed that addressing corruption is crucial for Zimbabwe’s economic recovery. “Corruption is a cancer that must be eradicated for economic stability and growth,” Kanyenze said. “There must be political will and a commitment to zero tolerance for corruption.”
The IMF also noted that Zimbabwe’s economy is resilient despite the impacts of the El Niño drought, with a projected growth rate of 2% for 2024, down from 5.3% in 2023.
