Online Reporter
Sikhulekelani Moyo [email protected]
THE Confederation of Zimbabwe Industries (CZI) says Zimbabwe has made significant progress in restoring monetary stability, but sustaining the gains will require continued policy consistency and stronger alignment between fiscal and monetary policy.
In a statement posted on its X handle following a quarterly engagement with the Reserve Bank of Zimbabwe (RBZ) recently, CZI said stability was now the biggest incentive Government could offer business.
CZI president Mrs Clara Mlambo reaffirmed industry’s support for the Reserve Bank’s disciplined approach to monetary policy and welcomed the central bank’s regular engagements with the private sector.
“Stability is the greatest incentive Government can give to business,” said Mrs Mlambo.
Presenting industry’s assessment, CZI chief economist Dr Cornelius Dube said monetary policy was being managed effectively, with stability recorded across inflation, the exchange rate, money supply and the financial sector.
However, he noted that some concerns about monetary policy were being driven by fiscal and other non-monetary issues.
“Productivity, exports, external shocks and policy disruptions continue to leave monetary policy vulnerable,” said Dr Dube.
He added that communication on the transition to a mono-currency must reflect market sentiment and the current level of ZiG acceptance.
“Confidence will require proof that stability is durable and that ZiG can be trusted as a store of value,” he said.
Presenting the RBZ position, Governor Dr John Mushayavanhu highlighted several measures taken to support stability and growth.
These include increased support under the Targeted Finance Facility (TFF), with funding increased while the interest rate was reduced from 20 percent to 15 percent, improving access to affordable financing.
The Governor also said Zimbabwe had maintained single-digit inflation despite prevailing geopolitical shocks, and that the RBZ had met all quantitative targets under the IMF Staff-Monitored Programme.
Significant progress was also made towards structural benchmarks following the review of first-quarter performance.
CZI said the policy direction was sound, but cautioned that confidence was a journey.
“Sustaining progress will require consistent implementation and collaboration between Government, industry and the Reserve Bank,” said the confederation.
The quarterly engagements between the RBZ and the private sector have become a key platform for aligning policy with business realities as Zimbabwe seeks to consolidate macroeconomic stability ahead of regional commitments, including the COMESA Chairmanship in October 2026.
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