Business
RBZ Says ZiG Is Gaining Trust as Inflation Remains Low
Everisto Zhuwao
The Reserve Bank of Zimbabwe (RBZ) says its tight monetary policy stance is helping to stabilise the economy and build confidence in the country’s local currency, the Zimbabwe Gold (ZiG).
Reserve Bank Governor John Mushayavanhu presented and unpacked the Monetary Policy Statement to Members of Parliament at the New Parliament Building in Mt Hampden, giving legislators a clearer understanding of the country’s economic direction and the measures being taken to maintain stability.
“This engagement allows lawmakers to fully appreciate the policy direction we have taken and the measures designed to safeguard macroeconomic stability,” said Dr Mushayavanhu.
The Governor said the central bank will continue to carefully manage money supply in order to keep prices stable and protect the value of the ZiG. He explained that the Bank’s strict approach is intended to prevent a return to high inflation while supporting sustainable economic growth.
“Our priority remains price stability. We are committed to ensuring that inflation remains low and predictable,” he said.
According to the RBZ, confidence in the ZiG is growing, with more people choosing to keep their savings in local currency bank accounts for longer periods instead of quickly converting them to United States dollars.
“The growing confidence in ZiG is reflected in the behaviour of depositors, who are now holding local currency balances for longer,” the Governor noted.
Figures from the National Payment Systems show that the use of the ZiG for transactions rose to 43 percent in May 2025 and averaged between 35 and 40 percent for much of the year, indicating wider acceptance of the local currency in everyday business.
“The increased usage of ZiG in the payment systems demonstrates rising public confidence in the currency,” he said.
The exchange rate has also remained stable, ranging between ZiG25 and ZiG27 per United States dollar since September 2024. The Reserve Bank attributes this stability to tight control of money supply and strong foreign currency reserves.
“Exchange rate stability has been achieved through disciplined monetary management and adequate reserves backing,” Dr Mushayavanhu explained.
The central bank also conducted stakeholder consultations in February 2026 and gathered feedback through surveys in 2025 to better understand public perceptions of the ZiG. The findings helped shape the current Monetary Policy Statement.
“Consultations and surveys are key to ensuring that our policies respond to the concerns and expectations of the market,” he said.
The RBZ said the tight policies introduced in late 2024 helped reduce inflation to single digits, and it plans to maintain this stance in 2026 to keep prices stable and inflation expectations under control.
“Maintaining single-digit inflation is critical for protecting incomes, savings, and business planning,” the Governor said.
Stable and low inflation is necessary to promote investment and support economic growth under the National Development Strategy 2, as well as to prepare the country for a possible future transition to a single-currency system.
“A stable macroeconomic environment is the foundation for long-term growth and the eventual move towards a mono-currency framework,” he said.
The Reserve Bank emphasised that the reforms introduced in April 2024 marked a turning point in restoring order to the monetary system and rebuilding confidence in Zimbabwe’s domestic currency.
Business
Kutsaga fueling food security and rural growth
Kutsaga Research Station, once synonymous with Zimbabwe’s tobacco industry, is now spearheading a transformative agricultural revolution, pivoting its scientific prowess towards rural industrialisation and national food security.
This monumental shift, lauded by Agriculture Permanent Secretary Prof. Dr. Obert Jiri at the recent ZITF 2026, marks a critical stride in aligning research with commercial viability and the nation’s ambitious Vision 2030 agricultural agenda.
Prof. Dr. Jiri said Kutsaga’s innovative expansion beyond its traditional mandate.
He specifically praised the station’s success in developing tissue-cultured virus-free sweet potatoes and pioneering industrial hemp cultivation.
These initiatives exemplify how institutional expertise can be leveraged to create commercially viable products, underscoring the imperative that research must be commercialised to ensure its long-term sustainability.
“Kutsaga’s transformation is not just about diversifying crops, it is about building resilient value chains that directly benefit our rural communities,” said Prof. Dr. Jiri.
ALSO READ: Global seed giants eye Zimbabwe as strategic hub
This strategic redirection aims to reduce the nation’s reliance on single commodities, thereby shielding farmers from the volatile impacts of market fluctuations and climate change.
The move is a direct response to Zimbabwe’s Vision 2030, which prioritises agricultural transformation as a cornerstone for economic growth and stability.
Business
Prospect Lithium Marks Historic First with Lithium Sulphate Export
Prospect Lithium of Zimbabwe has dispatched its first consignment of lithium sulphate from its newly commissioned US$400 million processing plant at Arcadia Mine.
According to the company, this is the first time lithium sulphate has been produced not only in Zimbabwe but across the African continent.
The milestone signals a significant move towards increased local processing of lithium, rather than exporting raw or semi-processed materials.
Prospect described the development as a breakthrough for the country and region, noting that the shipment represents the first production of lithium salts in Zimbabwe and Africa, and highlights progress in mineral beneficiation and industrial growth.
Zimbabwe has been tightening its policies on lithium exports in recent years. In 2022, the government banned the export of raw lithium, pushing mining companies to process the mineral into concentrates.
At that time, major players, including Prospect Lithium (owned by Huayou Cobalt), had already begun upgrading their operations.
In 2025, authorities raised the requirements further, announcing that by 2027, lithium producers will be expected to export sulphate, a higher-value product used in the manufacture of battery materials.
To support this transition, a 10% tax was introduced on lithium concentrates to encourage further processing.
Earlier this year, the government also temporarily halted concentrate exports, later allowing limited shipments under a quota system as producers adjust to the new value-addition requirements.
Business
Steelmakers Limited Drives Zimbabwe’s Industrial Growth Under Vision 2030
Zimbabwe is working to grow its industries under Vision 2030 Zimbabwe, and local companies are playing an important role in this effort.
One of these companies is Steelmakers Limited, which is helping the country produce more goods locally instead of importing them. By doing this, Zimbabwe saves foreign currency and strengthens its economy.
Steelmakers Limited stands out because it controls the whole production process. It mines iron ore in Masvingo and coal in Chiredzi, then uses these materials to produce sponge iron and finally finished steel products in Redcliff and Harare.
This means most of the work is done inside the country, creating more value locally and reducing the need to buy materials from outside.
The company also took part in the Zimbabwe International Trade Fair 2026, where it showcased its products and connected with business partners, investors, and government officials. This helped promote Zimbabwean steel and opened opportunities to sell products in other countries.
Steelmakers Limited plays a big role in national development. By producing steel locally, it reduces imports and helps keep money in the country. Its products are important for building houses, roads and factories supporting mining and agriculture. Steel is essential for development, and the company helps provide it.
The company also supports other sectors of the economy. Its operations create jobs and increase demand in transport, logistics, and engineering industries. This means its impact goes beyond just making steel.
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