Londile Moyo
Nqobile Bhebhe, Zimpapers Business Hub
FINANCE, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has reaffirmed Government’s commitment to maintaining tight monetary and fiscal policies for a while longer, as authorities move to consolidate macroeconomic stability and anchor inflation expectations.
Addressing delegates at the International Business Conference (IBC) held on the sidelines of the Zimbabwe International Trade Fair (ZITF) in Bulawayo on Wednesday, Prof Ncube said the current policy stance was deliberate and necessary to safeguard the gains achieved in stabilising the economy.
His remarks come at a time when Zimbabwe is recording single-digit inflation, a milestone authorities are keen to preserve amid global and domestic economic pressures.
“I really appreciate the presentation by the Vice President (Dr Chiwenga) regarding basically underlying the fact that we now have macroeconomic stability,” said Prof Ncube.
“I can assure you that the fiscal and monetary authorities were are determined to keep things that way.
“Once you test single-digit inflation, you want to keep it.’”
Zimbabwe’s inflation, which has historically been volatile, has significantly moderated in recent months, with Treasury and the Reserve Bank of Zimbabwe (RBZ) tightening policy levers to curb price instability and restore confidence in the economy.
Prof Ncube was emphatic that authorities have no appetite for a return to high inflation, describing price stability as a shared national objective.
“I can tell you that no one loves double-digit, triple-digit inflation. We all love single-digit inflation,” he said.
“So currently we are at 4.4%. We want to keep it at those levels going forward.”
To sustain this trajectory, the Minister indicated that both fiscal discipline and monetary restraint will remain in force, even as industry calls for more liquidity and easier access to capital.
“So expect as an industry, our policies, I say our tight policies to continue for a little longer where we are looking at fiscal policy tightness, but we expect us to make an improvement in paying for local suppliers,” he said.
Prof Ncube attributed the anticipated improvement to increased price stability and the weakening of distortions that previously plagued the market.
“One, also because you are now pricing at reasonable prices because of the absence of a robust parallel market,” he said.
“So we can afford to pay you on time without worrying about the premium and also because there are some prices for your guidance.
“So most of you supplying government should expect a better performance from the fiscal authorities.”
The Minister also underscored the importance of maintaining a tight monetary policy stance, particularly in managing inflation expectations and shielding the economy from external shocks.
“On the monetary front still, we expects a tight monetary policy as we are made inflationary expectations going forward.”
Prof Ncube said this resilience, even under potential fuel price shocks, reflects improved policy coordination and stronger analytical capacity within Government institutions.
The IBC, which drew an oversubscribed audience of policymakers, business leaders, investors and development partners, has emerged as a key platform for dialogue on Zimbabwe’s economic reforms and investment opportunities.
Prof Ncube’s remarks reinforce Government’s broader reform agenda, which prioritises macroeconomic stability, policy consistency and improved ease of doing business as critical pillars for attracting both domestic and foreign investment.
Online Reporter