Online Reporter
Business Reporter
The Reserve Bank of Zimbabwe (RBZ) has commended the continuous downward trend in the monthly inflation rate, indicating progress towards durable economic stability across both local and foreign currency-denominated prices.
According to the Zimbabwe National Statistics Agency (ZimStat), the weighted average monthly inflation rate saw a significant downturn in May, dropping 0,3 percentage points to 0 percent.
The US dollar (USD) month-on-month inflation rate fell to -0,3 percent in May, a 0,5 percentage point drop from April’s 0,2 percent.
However, the Zimbabwe Gold (ZiG) month-on-month inflation rate was 0,9 percent in May, a 0,3 percentage point increase 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 stated that the downward trend was a direct result of robust monetary policy measures.
Dr Mushayavanhu noted that monthly inflation has been consistently below 3 percent, providing a relatively predictable economic environment conducive for long-term planning and investment.
He added that through monetary policy measures, the economy has experienced relative exchange rate and inflation stability.
The Governor highlighted that the parallel market premium for the exchange rate has been contained at tolerable levels of around 20 percent.
The central bank has also been able to meet most of businesses’ foreign currency requirements for bona fide imports, regularly intervening in the forex market to ensure availability and help 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 sustain industry.
Zimbabwe’s total imports have averaged US$800 million per month from December 2022 to January 2025. Of this, capital goods averaged 19 percent (US$140 million) and intermediate goods averaged 53 percent (US$470 million), collectively accounting for 70 percent of total imports.
These policy interventions have contributed to industrial capacity utilisation increasing from 36,4 percent in 2020 and being sustained 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 allowing for infrastructure and skills development.
He emphasised that public-private sector collaboration and partnerships are critical in designing and implementing pro-business policies that reduce onerous regulatory requirements and foster investment, productivity, and growth.
Commending the long-standing partnership between the central bank and ZNCC, Dr Mushayavanhu stated that consistent stakeholder engagements, including those with ZNCC, have influenced the refinement and strengthening of the Reserve Bank’s monetary policy thrust, leading to notable price and exchange rate stability. He added that the Reserve Bank ensures optimal money supply management, keeping it within optimal liquidity levels and aligned with the economy’s growth objectives.
The Governor confirmed the operation of a market-determined exchange rate management system through the Willing-Buyer Willing-Seller (WBWS) interbank trading arrangement.
Efforts are ongoing to deepen the foreign exchange interbank market to enhance market determination of the exchange rate.
This, complemented by recent measures to streamline and consolidate foreign currency market operations regulations, has resulted in 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 Minister of State for Bulawayo Provincial Affairs and Devolution Judith Ncube by deputy director 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,” was 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, commended businesses for their resilience, adaptability, innovation and inspirational spirit.
