Online Reporter
Business Writer
Zimbabwe’s stable banking sector, anchored by prudent monetary policy, has reinforced public confidence in savings, supported by a sound financial system marked by low non-performing loans, controlled money supply growth and a stable macroeconomic environment.
Presenting the 2026 Mid-Term Budget Review in Parliament on Thursday, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said disciplined monetary management had safeguarded financial sector stability while fostering an environment that supports savings and investment.
He said reserve money continued to grow at a measured pace of about 20 percent, while broad money supply increased by 30,6 percent from ZiG108,1 billion recorded in December 2025.
This development comes as Zimbabwe’s stable inflation environment has created the conditions for stronger-than-expected growth, with the economy expanding by 6,8 percent in the first quarter of 2026, putting it on track to outperform the Government’s initial full-year growth forecast of 5 percent.
The Minister said the local currency component of reserve money rose by 30,4 percent from ZiG5,9 billion during the period, remaining comfortably within the Reserve Bank’s target for the second quarter of 2026.
“On monetary developments, monetary stability has been maintained. The restrained growth in monetary aggregates has ensured that exchange rate and inflationary pressures continue to move in line with GDP growth and regression targets,” Minister Ncube said.
The stable monetary environment has played a key role in protecting the value of savings after years of exchange rate instability and high inflation had weakened confidence in the financial sector.
Minister Ncube said the banking sector remained robust, providing a strong platform for financial intermediation and supporting economic expansion.
“As at 31 March 2026, the banking sector comprised 382 banking and non-bank financial institutions,” he said.
He noted that the sector remained safe and resilient, with the ratio of non-performing loans to total loans standing at 3,64 percent, well below the internationally recognised threshold of five percent.
Total banking sector loans and advances reached approximately ZiG85 billion by the end of June 2026, reflecting continued lending to productive sectors of the economy.
Minister Ncube said Zimbabwe’s capital markets also maintained positive momentum during the first half of the year, with both the Zimbabwe Stock Exchange and the Victoria Falls Stock
Exchange recording sustained trading activity that contributed to higher market capitalisation.
He attributed the resilience of the financial sector to coordinated fiscal and monetary policies that have kept inflation and exchange rate movements under control.
The minister also highlighted stronger fiscal performance, revealing that the Government collected ZiG137,8 billion in revenue during the first six months of the year, while expenditure amounted to ZiG123,6 billion.
He said the resulting budget surplus was directed towards servicing public debt and clearing outstanding obligations to service providers, demonstrating the Government’s continued commitment to fiscal discipline and macroeconomic stability.
