At the request of the Reserve Bank of Zimbabwe (RBZ), the Monetary and Capital Markets (MCM) Department conducted a virtual mission from May 3 to June 10, 2022 to assist the RBZ on strengthening consolidated supervision framework. The main focus was to support the RBZ in updating the RBZ consolidated supervision framework, enhancing prudential reporting on a consolidated basis, strengthening the assessment of banking group’s risks, and intensifying cross-border and interagency cooperation.
1. Our Zimbabwean authorities appreciate the constructive engagement with IMF staff during the recent Article IV Consultation. They value Fund policy guidance and broadly share the staffs assessment of attendant macroeconomic challenges and key policy priorities.
1. Several factors have interacted to propel fragility in Zimbabwe and undermine economic and social outcomes (Annex I). Periods of strong growth were not sustained owing to climatic and health shocks, as well as policies that fueled economic imbalances, distorted prices, promoted rent-seeking, and weakened competitiveness. In the 2000s, a challenging land reform and an HIV/AIDs epidemic, accompanied by weak institutions, exacerbated the output decline. Per capita income lags its peak and that of sub-Saharan Africa and extreme poverty has risen sharply. On the positive side, human development has caught up with and surpasses that of peers.