Online Reporter
Rutendo Nyeve in Mutare
THE Reserve Bank of Zimbabwe (RBZ) has unveiled a comprehensive Back-to-Basics strategy that is characterised by currency stability, efficient payment systems, and a liberalised capital framework which are the fundamental pillars for unlocking significant investment, particularly in the nation’s growing tourism sector.
This was revealed by the Deputy Director at the central bank Mr William Manhimanzi during the Tourism Investment Forum held here in Mutare on Tuesday.
Mr Manhimanzi reaffirmed RBZ’s commitment towards providing an enabling environment for tourism sector investment saying the Central Bank is playing a crucial role in creating a predictable and secure economic landscape attractive to both domestic and international investors.
Mr Manhimanzi said the core mandate of price and financial system stability is the bedrock upon which trade and investment are built.
“The pre-requisites for facilitating investment flows are: a stable, reliable and predictable currency; a reliable, efficient and accessible payment system; [and] a stable, resilient and integral financial system,” he said.
He said these are foundational elements the RBZ is focused on delivering.
He said the central bank is cognisant of the importance of exchange rate stability, a historical challenge for Zimbabwe.
“Exchange rate stability remains a cornerstone of economic confidence, and enhances a country’s investment appeal,” he said.
He said the adverse effects of volatility lead to pricing uncertainties as inflation gallops and loss of savings.
Conversely, a stable currency allows businesses in tourism and related sectors to make long-term investment decisions with confidence, ensuring predictability in costs and the value of their returns.
Beyond currency stability, the Deputy Director outlined the RBZ’s role in ensuring seamless financial transactions.
He pointed to the National Payment System as critical for facilitating the transfer of funds within the country and cross-border, coordinating with banks, fintech firms, and international organisations to keep systems running efficiently.
He said one of the most encouraging initiatives for foreign investors eyeing Zimbabwe’s tourism potential were the comments on foreign exchange management.
“The RBZ is fostering a liberalised environment to support the smooth flow of current and capital account transactions. This includes facilitating offshore payments and remittability of profits and dividends to foreign shareholders and allowing for capital repatriation, investment remittances, and dividend transfers,” he said.
This marks a significant shift towards building investor confidence, acknowledging past struggles.
The Deputy Director said the nation has a long history of macroeconomic instability which created serious confidence and credibility deficit in the Central Bank’s Monetary Policies.
“In response, the RBZ has adopted a Back to Basics Strategy since April 2024, which seeks to regain public confidence and trust in policy formulation and implementation with a view to ‘Build Market Confidence, Trust and Policy Credibility’. The focus is now squarely on the Bank’s core objectives, moving away from the currency and exchange rate volatility, high inflation, and loss of savings that previously hampered investment,” he said.
For the tourism sector, which thrives on international visitors and foreign direct investment, the RBZ’s renewed focus on these fundamentals signals a promising new chapter.
By prioritising a stable currency, efficient payments, and flexible capital flows, the Central Bank is working to ensure that Zimbabwe’s world-class tourist attractions are supported by a world-class financial environment, paving the way for sustainable growth and investment.
