Online Reporter
Tapiwanashe Mangwiro
THE Reserve Bank of Zimbabwe (RBZ) says it will continue supporting key productive sectors through the Term Lending Refinancing Facility (TLRF) as part of broader efforts to sustain disinflation and consolidate stability under the gold-backed Zimbabwe Gold (ZiG) currency regime.
The Lending Refinancing Facility is a programme administered by the RBZ through the banking system to provide long-term funding to specific sectors like agriculture, manufacturing and mining, which often require substantial capital to operate effectively.
Speaking after the latest Monetary Policy Statement (MPC) meeting on June 16, RBZ Governor Dr John Mushayavanhu reaffirmed the central bank’s commitment to the TFF as an anchor for economic productivity.
“The bank will continue to support the key productive sectors of the economy, including the SMEs sector, under the Term Lending Refinancing Facility (TLRF),” the Governor said. He noted that as of June 13, 2025, the bank had disbursed ZiG 1,03 billion under the facility.
The TFF, which targets agriculture, manufacturing, and other growth sectors, forms part of broader measures to stabilise the local currency and support supply-side interventions.
“The facility is critical to ensure that there is production to back the currency and sustain disinflation,” Dr Mushayavanhu added.
The MPC also welcomed a significant improvement in the usage of the gold-backed ZiG currency across the economy, attributing the trend to the prevailing macroeconomic stability.
“According to the central bank, the share of local currency transactions on the National Payments System rose sharply from ZiG 7,9 billion, or 26 percent of total transactions in April 2024, to ZiG 56, 8 billion, which is 43 percent of the total, by the end of May 2025.
“The increasing adoption of ZiG in everyday transactions is a strong vote of confidence in the currency and a reflection of improved economic sentiment,” said Dr Mushayavanhu.
He further emphasised that the currency remained well-supported, with foreign currency reserves covering both reserve money, ZiG 4,7 billion and total local currency deposits ZiG15,5 billion by a wide margin.
“As at June 13, 2025, the Bank held foreign currency reserves equivalent to US$701 million or ZiG 18,9 billion, which fully covers our entire domestic currency obligations. This is fundamental to maintaining the credibility and stability of the ZiG,” he noted.
