Rumbidzayi Zinyuke-Senior Reporter
CABINET has approved a new five-year development strategy to consolidate macro-economic gains, restore public confidence, and strengthen the financial sector’s capacity to drive long-term investment, industrial growth and job creation.
The Second Republic, under the stewardship of President Mnangagwa, has crafted policies which have stabilised the economy resulting in single digit inflation, currency stability and steady economic growth.
The Financial Sector Development Strategy (2026–2030), presented to Cabinet by Finance Minister Professor Mthuli Ncube, outlines a framework to transform Zimbabwe’s banking, insurance, pension and capital markets into a competitive, inclusive system capable of mobilising domestic savings for productive sectors.
Addressing a post-Cabinet media briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister Dr Zhemu Soda confirmed that the financial sector remained safe and sound, backed by robust institutional capitalisation and low levels of non-performing loans.
Dr Soda highlighted substantial progress under the Second Republic, noting that total banking deposits had expanded from approximately US$2 billion in 2017 to US$7 billion in 2026.
“The nation is being informed that the financial sector, encompassing banking, insurance, pension, and capital markets, remains safe and sound, underpinned by adequate capitalisation and low non-performing loans,” Dr Soda stated.
“Confidence building in the financial sector will continue to be advanced to effectively support the country’s national development agenda through, among other initiatives: fostering financial sector deepening; improving financial sector efficiency; enhancing financial stability; strengthening financial infrastructure; promoting the growth of capital markets; enhancing financial inclusion; promoting financial literacy; enhancing financial innovation; and maintaining policy consistency.”
Responding to questions from journalists, Prof Ncube said the aggressive growth in the national deposit base provided commercial banks with enhanced capacity to underwrite critical economic activities.
“Basically, in the financial sector, we recognise, first of all, the progress that we have made in building confidence in our financial services sector,” Prof Ncube said. “This deposit means that the banks have more resources to lend to the public, more resources to lend to corporates and entities that wish to invest in and do business. This is positive for citizens.”
Improving macro-economic indicators, driven by declining inflation, Prof Ncube said, should structurally pave the way for lower interest rates, rendering lines of credit more affordable for households and corporate entities.
“It means that it should become easier, and also with the lower interest rates over time due to lower inflation, it should become easier to borrow from the bank, facilities would be cheaper, and also corporates or businesses can also borrow more from the banks for a lot less in terms of interest,” he explained.
While welcoming the growing trend of commercial banks paying interest on customer deposits, the Finance minister strongly challenged financial institutions to align their commercial lending rates with downward adjustments made to the central bank’s policy rate.
He rebuked the sector for allowing borrowing costs to remain “sticky downwards.”
“We have observed that whenever the central bank, working with the MPC to reduce the rate at which banks borrow from the central bank, the banks don’t necessarily follow suit by reducing their own lending rates,” Prof Ncube observed.
“On the contrary, we see them responding upwards whenever the policy rates were to go up, then they don’t hesitate. But whenever they want to reduce, they are slow. We appeal to the commercial banks to just work with the central bank and also reduce the interest rates accordingly.”
Under the newly approved blueprint, State interventions will focus heavily on upgrading financial infrastructure, expanding grassroots financial literacy, and maintaining strict policy consistency to channel capital directly into agriculture, manufacturing, and infrastructural projects critical to securing Vision 2030 targets.
