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Economic growth

Zimbabwe's Central Bank Pledges Commitment to Stabilisation Measures and De-Dollarisation Roadmap

Strategic Insights

— 2 min read

Dr Innocent Matshe, the Deputy Governor of the Reserve Bank of Zimbabwe (RBZ), expressed the bank's commitment to implementing stabilisation measures and the de-dollarisation roadmap in a bid to foster macroeconomic stability and sustainable growth. The RBZ has identified the mining industry as a critical sector in implementing these measures. The global economy is experiencing heightened geopolitical tensions, trade wars, and revised global GDP growth projections downward to 2.8 percent in 2025 and 3 percent in 2026.

The Deputy Governor highlighted the adverse effects of these global dynamics on Zimbabwe, including lower commodity prices for most minerals, reduced capital inflows, and persistently high global interest rates. Notably, the mining sector contributed US$1,402 million in foreign exchange inflows during the first quarter of 2025, a significant increase from US$1,088 million in the same period in 2024. However, the sector's contribution to total foreign exchange inflows declined from 49.5 percent in 2023 to 44.3 percent in 2024 due to falling international commodity prices.

Key Takeaways:

  • The Reserve Bank of Zimbabwe (RBZ) has committed to implementing stabilisation measures and the de-dollarisation roadmap to foster macroeconomic stability and sustainable growth.
  • The mining industry is a critical sector in implementing these measures, contributing significantly to foreign exchange inflows.
  • Global economic dynamics have led to revised GDP growth projections downward to 2.8 percent in 2025 and 3 percent in 2026, with inflation expected to decline to 4.3 percent and 3.6 percent, respectively.
  • The RBZ has outlined the pillars of successful de-dollarisation, drawing lessons from other countries with durable macroeconomic stability, adequate foreign reserves, and a sustainable fiscal position.
  • The RBZ's reserves now fully cover ZWG reserve money and deposits in the banking sector, providing a buffer against external shocks.
  • Transactional use of ZWG has risen from 26 percent in April 2024 to over 36 percent by April 2025, driven by Government measures such as higher tax payments in ZWG and the rollout of Point-of-Sale (POS) machines.
  • Inflation is expected to decline, with month-on-month rates averaging below 3 percent in 2025, and annual inflation falling to around 30 percent by December 2025.

Statistics:

  • The mining sector contributed US$1,402 million in foreign exchange inflows during the first quarter of 2025.
  • The sector's contribution to total foreign exchange inflows declined from 49.5 percent in 2023 to 44.3 percent in 2024.
  • Revised global GDP growth projections are 2.8 percent in 2025 and 3 percent in 2026.
  • Inflation is expected to decline to 4.3 percent and 3.6 percent in 2025 and 2026, respectively.
  • The RBZ's reserves now fully cover ZWG reserve money and deposits in the banking sector.
  • Transactional use of ZWG has risen from 26 percent in April 2024 to over 36 percent by April 2025.
  • Inflation is expected to decline to around 30 percent by December 2025.

Sources:

  • Zimbabwe Annual Mining Conference
  • Reserve Bank of Zimbabwe (RBZ)

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