Online Reporter
Nelson Gahadza
Zimbabwean companies can now plan for the future with greater certainty, thanks to the country’s stabilising economy and the introduction of the Zimbabwe Gold (ZiG) currency, Finance Minister Professor Mthuli Ncube has said.
Minister Ncube highlighted this positive shift, noting that the improved macroeconomic environment is enabling businesses to boost capacity and invest for the long term.
“We have to continue with that stability, which will be able to keep inflation in check but also give a much more certain environment for companies to operate in,” Minister Ncube stated in an interview.
He observed that companies across the country are already increasing production lines and capacity utilisation, a direct result of the more predictable economic landscape.
This renewed confidence stems from the Government’s commitment to tight fiscal and monetary policies, which have successfully curbed inflation and stabilised exchange rates.
The month-on-month ZiG inflation rate has remained below 1 percent for the past three months, a clear indicator of the new-found stability.
“I have been visiting a few companies around the country. It is quite clear that the stability is welcome to allow the companies to plan and allow them to invest.
“Some of them have even increased production lines and capacity utilisation just because of a more predictable environment,” he said.
He added, “And the question is, how do we make sure that this continues and the exchange rate also reflects the market sentiment, the confidence, and builds confidence around it?
“All of that is what we are discussing, and we want to make sure that it happens. But the goal of clearing arrears is a real one.
“That is what will open up the floodgates for additional cheaper global capital for Zimbabwe to finance our growth going forward,” he emphasised.
The month-on-month ZiG inflation rate has been relatively low and stable at less than 1 percent over the last three months.
The year-on-year US dollar inflation rate also saw a slight decrease to 13,9 percent in May 2025.
Stockbroking and equities research firm IH Securities, in their recent equity strategy paper for 2025, said investments in capacity have resulted in increased production for gold miners as well as select companies in the consumer space like Delta Corporation and Dairibord Holdings.
Financial economist Malone Gwadu, in an interview, recently said innovation and adaptability to current market and economic realities remain critical cornerstones for any company’s resilience and medium-to long-term growth and sustainability.
He said traditional business models may not be watertight enough to withstand modern-day market trends of cutthroat competition.
“Revenue-enhancing strategies such as diversifying and backward integration to capture previous costs as revenue are also another survival strategy for companies to look into,” Malone Gwadu said.
Professor Ncube further said the Government is looking at areas where there are risks and being able to deal with those risks or think about how they should be mitigated.
“But on fiscal discipline, we want to make sure that we stay within our means in terms of expenditure.
“Then on the monetary front, again, making sure that the issues around forex instances, the parallel market that may then emerge and increase the gap between the official rate and unofficial rate, is what we need to deal with.
“Therefore, maintaining good policies is one way of making sure that the gap is dealt with, and we have come a long way; hence, the ZiG is basically very stable,” he said.
Professor Ncube said the Government is pleased to welcome the IMF mission, which is in the country for two missions: Article 4 consultations and discussions of the Staff Monitored Programme (SMP).
The Finance Minister further said the Treasury is gearing up to present the mid-term budget review as well as the budget strategy paper for next year and think about the macroeconomic framework as we move towards National Development Strategy 2 (NDS2) and Vision 2030.
The IMF team officially commenced its mission in Zimbabwe on June 4 and is scheduled to run until June 18.
