Zimbabwe’s economy is projected to grow by 6 percent in 2025, a sharp rebound from 1.7 percent in 2024.
This growth is attributed to a strong performance in agriculture, mining, manufacturing, and tourism.
Tobacco deliveries surpassed 351 million kg, while gold deliveries increased to 20.1 tonnes by June 2025 (up from 13.85 tonnes in 2024).
Reserve Bank of Zimbabwe (RBZ) presented its 2025 Mid-Term Monetary Policy Statement.
RBZ Governor John Mushayavanhu’s latest Monetary Policy Statement is themed “Staying the Course” – and he’s done exactly that.
There are no big changes, with RBZ holding rates steady, showing how anxious authorities are about sparking a new round of inflation.
Monthly inflation is expected to remain between 1%-3%, with annual inflation ending below 30%.
The RBZ commits to ensuring exchange rate and price stability through tight control of money supply and enhanced monetary policy tools.
The central bank also plans to roll out new ZiG banknotes and finalize the de-dollarisation roadmap under the forthcoming National Development Strategy II (NDS2).
Key Policy Measures Announced.
Minimum Interest Rates: Maintained at 5% (savings) and 7.5% (time deposits) for ZiG; 2.5% and 4% respectively for USD.
Bank Charges: Exemption of accounts below US$100 from bank charges and fee waivers for POS transactions under US$5.
Statutory Reserve Ratios: Maintained between 15%-30% to manage liquidity without affecting long-term savings.
Targeted Finance Facility (TFF): Continued support for productive sectors, especially agriculture and manufacturing.
Foreign Exchange Retention: Exporters retain 70% of their earnings; 30% surrender maintained.
ZiG Cash Access: Banks instructed to distribute ZiG cash via ATMs and branches, with a cash-to-deposit target of 3%.
The Bank Policy Rate remains at 35%, which, along with other measures, has been instrumental in curbing speculative borrowing and anchoring inflation expectations.
The RBZ reiterated its commitment to the “Back-to-Basics” framework, prioritizing price stability as the primary objective of monetary policy.
Zwnews
