‘Zim economy holds the line amid global shocks’
SAMANTHA MADE
Despite persistent global turbulence and domestic structural challenges, Zimbabwe’s ecsonomy is demonstrating a remarkable streak of resilience—a trait that authorities hope will anchor broader economic stability this year .and beyond, the Reserve Bank of Zimbabwe Monetary Policy Committee member Persistence Gwanyanya has said.
He reaffirmed the government’s optimism, underscoring that the country’s economic performance is withstanding external shocks better than anticipated.
“In the future, we are hopeful about a stable environment, with the economy demonstrating resilience despite external factors,” Gwanyanya said.
The sentiment comes at a time when many regional peers are battling spiralling inflation, currency depreciation, and fragile fiscal positions, exacerbated by ongoing geopolitical tensions and tightening global financial conditions. Yet, Zimbabwe, armed with new monetary tools and disciplined fiscal management, is keeping its reform momentum alive.
A key pillar in this resilience narrative, Gwanyanya said. is the ZiG (Zimbabwe Gold) currency.
Authorities have pledged to continually improve its availability to meet market demands.
“The RBZ is going to continuously look at increasing the ZiG circulation in the economy,” Gwanyanya noted, highlighting the government’s commitment to strengthening transactional confidence and liquidity in the formal market.
Since its introduction, Gwanyanya highlighted that ZiG has gained slow but steady traction in key sectors, with the RBZ adopting a cautious approach to avoid the hyperinflationary pitfalls of the past.
Increasing circulation, however, is expected to stimulate broader adoption, deepen formal market usage, and reduce reliance on parallel exchange systems.
Inflation, one of Zimbabwe’s longest-standing economic adversaries, is expected to end the year within a manageable corridor. Gwanyanya said authorities project annual inflation to close between 20% and 30%, a significant drop from the volatile triple-digit figures of previous years.
The projection signals confidence in recent monetary tightening and market reforms, including interest rate adjustments and a recalibrated exchange rate framework. Analysts believe these moves—backed by tighter fiscal controls—are gradually anchoring inflation expectations.
“The real test,” according to a Harare-based economist, “will be whether this progress can be sustained into 2026 without reverting to old patterns of fiscal indiscipline and over-expansion of money supply.”
In a further sign of stabilisation, the exchange rate is projected to settle within a 1:30 corridor by year-end, offering a buffer against speculative pressure and import-driven volatility. For exporters and importers alike, such predictability provides the foundation for strategic planning and operational efficiency—key ingredients for investment growth.
Gwanyanya’s remarks suggest the authorities are working to build not just a functional market system, but one underpinned by trust. The calibrated exchange rate mechanism, if disconnected cc from political interference and speculative manipulation, could gradually reinstate confidence in Zimbabwe’s monetary policy credibility.
Despite the encouraging tone, economists warn that resilience without reform could be short-lived. Zimbabwe still needs to address key bottlenecks, including power supply inconsistencies, a narrow tax base, and limited foreign direct investment inflows. Transparency in public spending and structural realignment of state-owned enterprises remain on reform watchlists.
“Resilience is not the absence of pain, but the ability to bend without breaking,” said a local financial analyst who requested not to be named.
“Zimbabwe is bending right now—holding up surprisingly well—but we need to ensure that these foundations are not eroded by complacency.”
