Online Reporter
Business Reporter
GLOBAL financial services group Citigroup has said that Zimbabwe is experiencing an economic turnaround following years of destructive money printing, currency crashes and hyperinflation.
The US investment bank warned that international investors risk missing these structural reforms because of the southern African nation’s previous global isolation and perceived risks.
“Where perceptions and reality may now be increasingly out of kilter is the speed with which an economic turnaround has started to play out in Zimbabwe since 2025,” Bloomberg quoted Mr
David Cowan, Citigroup’s chief Africa economist, as saying in a note to clients.
Citigroup operates as the third-largest bank in the United States by assets, holding over US$1,8 trillion in consolidated assets while generating over US$80 billion in annual revenue.
Explaining the underlying policy shifts behind the turnaround, Mr Cowan said that “fiscal issues have long been at the heart of the country’s poor macroeconomic performance.”
Following its introduction in April 2024, the gold-backed Zimbabwe Gold currency has anchored unprecedented macroeconomic stability.
Citigroup points to a dramatic collapse in price pressures as a primary marker of the recovery. After average annual consumer price growth surged in 2024, Citigroup projects inflation to drop below 8 percent this year.
Authorities in Zimbabwe are even more bullish, with both the Reserve Bank of Zimbabwe (RBZ) and the Ministry of Finance, Economic Development and Investment Promotion projecting domestic currency inflation to close the year below 5 percent.
Official statistics from the Zimbabwe National Statistics Agency show that annual inflation averaged roughly 4 percent through the first eight months of the year, sliding to 2,9 percent in August.
Reflecting on the milestone, RBZ governor Dr John Mushayavanhu this week highlighted that the 2026 inflation figure represents the lowest single-digit level since 1980.
“This is indeed a clear testament that the prudent policies being pursued by the authorities have been effective in continuously delivering price, currency and exchange rate stability in the economy,” said Dr Mushayavanhu.
“In this regard, the prevailing low and stable inflation environment should support greater predictability and certainty in business planning and investment critical for the wider use of ZiG in the multi-currency environment.”
The central bank deficit financing has been eliminated since April and sustained during the nearly 10-month International Monetary Fund (IMF) staff-monitored programme period.
Leading corporate giants in Zimbabwe have commended the exchange rate stability under the multicurrency regime, citing heightened predictability as a driver for expanded capital deployment.
Beverage manufacturer Delta Corporation attributed strong volume growth across its operations to predictable currency dynamics and firm consumer spending, expressing a strong desire to invest more in local distribution capacity and processing facilities.
Food processing firm National Foods Limited also noted that exchange rate stability and local agricultural growth have boosted consumer purchasing power, reinforcing its plans to invest further in local industrial capacity and new production lines.
Beyond prudent fiscal and monetary policies, several fundamentals are anchoring the prevailing stability, including high international bullion prices and surging mineral output.
Gold export earnings jumped 61 percent to reach US$2,18 billion during the first seven months of the year, complemented by an expanding domestic lithium mining footprint and strong agricultural yields.
Total export proceeds reached US$7,53 billion during the first half of 2026, anchored by a monthly export record of US$1,44 billion in June.
The manufacturing sector has witnessed noticeable growth, higher capacity utilisation and rising investor confidence due to stable price pressures.
Major multilateral economic institutions have endorsed this positive trajectory while projecting a strong medium-term outlook.
Citigroup also noted that high levels of dollarisation and a US$21,3 billion external debt pile continue to constrain the economy.
To assist in negotiations for Zimbabwe’s debt restructuring process under the international framework, France and the United Kingdom have agreed to co-chair an official creditors committee.
