Online Reporter
Peter Matika, [email protected]
GOVERNMENT’s ongoing policy reforms are impacting positively on the economy resulting in sustained growth of the productive sector and improved consumer welfare occasioned by the prevailing stable exchange rate and pricing predictability.
Informed by routine surveys that monitor the prices and availability of essential goods, the Government is proactively ensuring that consumers have access to vital information and support, as well as protection from predatory business practices.
This emerged during yesterday’s Cabinet meeting chaired by President Mnangagwa in Harare, where the Government expressed satisfaction with the supply of basic goods and services as well as pricing movement, which aligns with the targeted positive economic indicators.
Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, in a post-Cabinet media briefing, said surveys focusing on 14 key commodities were being routinely conducted to ensure consumers are not prejudiced.
These cover mainly staples in many households, including mealie-meal, laundry soap, cooking oil, bread, sugar, flour, rice, bath soap, washing powder, milk (both powdered and fresh), eggs, beef, chicken and salt.
“As consumers navigate their daily lives, it’s important to recognise the connection between the prices of these basic commodities and fluctuations in exchange rates,” said Dr Muswere.
“The Ministry of Industry and Commerce has noted a positive trend — the gap between official and parallel market rates has narrowed, providing some relief to shoppers feeling the pinch at the checkout.”
According to the Reserve Bank of Zimbabwe (RBZ), the official exchange rate is hovering around US$1:ZWG26 with the parallel market traders offering ZWG33 to ZW35 per US dollar.
On the other hand, official statistics show that the March weighted month-on-month inflation rate was zero percent, shedding 0,3 percentage points from the February rate of 0,3.
ZimStat also reported that the US dollar inflation rate for March was 0,1 percent, down from last month’s rate of 0,2, while the ZWG rate stood at 0,1 percent, down from 0,5 percent in March.
Dr Muswere said despite the change in the trend, wholesale and retail sectors have been grappling with significant challenges, leading to the recent branch closures and reduced operations for some retailers.
“Despite these hurdles, there’s a silver lining: local products are continuing to shine, taking up more shelf space in both formal and informal market outlets,” he said.
“This is a promising sign for local producers and consumers alike, as it supports the economy and promotes homegrown goods.”
To ensure compliance and fair practices, Dr Muswere said the Ministry of Industry and Commerce has accelerated inspections, resulting in 137 prosecutions and the issuance of 245 compliance notices.
“Additionally, authorities have seized 3 427 units of various products, reinforcing the importance of maintaining standards in the marketplace.
“On a brighter note, the current tight monetary policy is showing positive results by helping to contain inflationary pressures and stabilise exchange rates. This is an encouraging development for consumers who are concerned about rising prices,” said Dr Muswere.
Economists have also applauded the Government’s tight monetary policy stance, stating that it has subdued inflation and anchored exchange rate stability.
Tight monetary policy involves limiting the money supply and credit availability by raising interest rates, while tight fiscal policy entails reducing Government spending, thus limiting the liquidity available to chase goods and services.
Zimbabwe’s economy has previously suffered from excessive money creation through various channels, including the Government’s access to the central bank window to fund key public programmes.
Economist Mr George Nhepera, in a recent report, noted that while the country may not want to raise expectations too much for now, the reality of the current inflation figures suggests that the country has, at last, managed to subdue and control inflation to lower levels.
Tight, or contractionary, monetary policy is a course of action undertaken by central banks to slow down overheated economic growth.
As such, the RBZ’s tight monetary policy stance has anchored price and exchange rate stability across the market.
Inflation in Zimbabwe tracks the movement in the exchange rate, meaning that stability in the domestic currency, which is influenced by the level of money supply in the economy, is one of the most critical factors in maintaining stability.
Meanwhile, Dr Muswere said the recent 65th edition of the Zimbabwe International Trade Fair (ZITF), which was officially opened by the President of Mozambique, President Daniel Chapo, demonstrated the country’s higher economic capacity and leverage on its membership of the African Continental Free Trade Area (AfCFTA).
“Pertaining to the level of local and foreign participation, 8 179 business visitors were registered, compared to the 7 934 recorded in 2024. The total number of exhibitors in 2025 reached 574, compared to the 517 recorded in 2024. Private sector participation has shown a marked increase with 368 companies exhibiting in 2025, up from the 298 recorded in 2024,” said Dr Muswere.
He said thirty foreign nations attended the fair for the first time, which is clear testimony that the Government’s engagement and re-engagement policy is continuing to yield results.
“The Trade Fair also hosted side events such as the Zimbabwe-India Business Session that attracted new Indian investments into Zimbabwe currently estimated at US$600 million, the Research for Industrialisation Conference that featured models of innovation such as the Lupane State University’s goat production project and the Midlands State University’s Coal-to-Tar initiative; and the Diplomats Forum, among others,” Dr Muswere said.
On economic impact assessment, he said a notable 6, 3 percent of respondents indicated the successful conclusion of business agreements, signifying substantial economic engagements.
“Beyond the immediate monetary value of deals, the fair has also facilitated the forging of key agreements. An impressive 20 percent of respondents reported the signing of various agreements underscoring the platform’s role in fostering long-term collaborations,” said Dr Muswere.
