Online Reporter
Business Writer
THE Reserve Bank of Zimbabwe (RBZ) has commended the continued downward trend in monthly inflation, signalling progress towards lasting economic stability across both local and foreign currency-denominated prices.
According to the Zimbabwe National Statistics Agency (ZimStat), the weighted average monthly inflation rate recorded a notable decline in May, dropping by 0,3 percentage points to 0 percent.
The US dollar month-on-month inflation rate fell to -0,3 percent in May, a 0,5 percentage point decrease from April’s 0,2 percent. However, the Zimbabwe Gold (ZiG) month-on-month inflation rate rose to 0,9 percent in May, up 0,3 percentage points from April’s 0,6 percent.
In a keynote address delivered on his behalf by Deputy Governor Dr Jesimen Chipika at the Zimbabwe National Chamber of Commerce (ZNCC) 2025 Matabeleland Annual Business Awards (MABAs) in Bulawayo on Friday, RBZ Governor Dr John Mushayavanhu attributed the downward trend to robust monetary policy measures.
Dr Mushayavanhu noted that monthly inflation has consistently remained below three percent, creating a relatively predictable economic environment conducive to long-term planning and investment. He added that through sound monetary policy, the economy has experienced relative exchange rate and inflation stability.
The Governor highlighted that the parallel market exchange rate premium has been contained at tolerable levels of around 20 percent.
The central bank has also managed to meet most of the foreign currency requirements for bona fide imports, regularly intervening in the forex market to ensure availability and to anchor inflation and exchange rate expectations.
He further stated that the RBZ has ensured increased availability of foreign currency for the importation of capital and intermediate goods to support industry. Zimbabwe’s total imports have averaged US$800 million per month from December 2022 to January 2025.
Of this, capital goods accounted for an average of 19 percent (US$140 million), while intermediate goods made up 53 percent (US$470 million), collectively representing 70 percent of total imports. These policy interventions have contributed to industrial capacity utilisation rising from 36,4 percent in 2020 and remaining above 50 percent since 2021.
Dr Mushayavanhu called for strategic collaboration between public and private sector players to unlock Zimbabwe’s full business potential by enhancing competitiveness and enabling infrastructure and skills development.
He emphasised that public-private partnerships are essential in crafting and implementing pro-business policies that reduce regulatory burdens and foster investment, productivity, and growth.
Commending the long-standing partnership between the central bank and ZNCC, Dr Mushayavanhu noted that consistent stakeholder engagement, including with ZNCC, has helped refine and strengthen the Reserve Bank’s monetary policy direction, resulting in notable price and exchange rate stability. He added that the RBZ ensures optimal money supply management, maintaining liquidity levels aligned with the economy’s growth objectives.
The Governor confirmed the operation of a market-determined exchange rate system through the willing-buyer willing-seller (WBWS) interbank trading arrangement. Efforts are ongoing to deepen the foreign exchange interbank market to enhance market-based exchange rate determination.
This, along with recent measures to streamline and consolidate foreign currency market regulations, has led to the removal of trading margins. The RBZ has also partnered with ZNCC on its Monetary Policy Provincial Stakeholder Engagements, which have been instrumental in disseminating monetary policy measures to grassroots business levels.
In a speech read on behalf of the Minister of State for Bulawayo Provincial Affairs and Devolution, Judith Ncube, by Deputy Director of Administration Mr Julius Gwatiwa, it was stated that the awards were a testament to the region’s growth and unwavering commitment to excellence. She noted that the awards’ theme, “Unlocking Business Potential through Policy, Partnerships and Productivity,” served as a vital reminder of the role collaborative efforts, innovative policies, and a focus on productivity play in driving sustainable economic development in Matabeleland and beyond.
ZNCC Matabeleland Vice President, Mrs Beauty Bhulu, acknowledged the challenging business environment in
Zimbabwe, citing daily hurdles such as price volatility, policy shifts, power outages, and currency instability. Despite these challenges, she praised businesses for their resilience, adaptability, innovation, and inspirational spirit.
