Dennis Ndlovu
Business Reporter
Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu has shown optimism about the nation’s economic recovery, forecasting a 6% growth rate for 2025, up from a projected 1.7% in 2024.
In his Mid-Term Monetary Policy Statement released on 7 August 2025, Mushayavanhu credited the robust recovery to stable macroeconomic conditions supported by the successful introduction of the Zimbabwe Gold (ZiG) currency in April 2024, which has stabilized prices and exchange rates while fostering growth in key sectors of the economy.
He stated that the Reserve Bank had “walked the talk and stayed the course” by keeping money supply growth in line with inflation targets and economic growth forecasts.
This strategy, according to Mushayavanhu, has enabled disinflation to continue without harming growth. He explained:
“The strong growth rebound also benefited from the recovery in the performance of the agricultural sector and the growth in the mining, manufacturing and tourism sectors.”
The central bank pointed to the steady ZiG/US dollar exchange rate and low foreign exchange market volatility as important indicators of progress. Between February and July 2025, monthly ZiG inflation averaged only 0.6%.
Mushayavanhu noted that although annual inflation remains high due to base effects, it is expected to ease considerably and finish the year near 30%. He added:
“Foreign currency reserves have grown by over 150% from US$285 million in April 2024 to over US$730 million in June 2025.
“The Reserve Bank will continue to accumulate foreign currency reserves to achieve the regional benchmark of 3-6 months of import cover to support the sustained stability of the local currency.”
The central bank chief highlighted strong foreign currency inflows, which reached US$7.2 billion in the first half of 2025, up from US$5.9 billion during the same period in 2024.
These inflows, mainly from export earnings and remittances, have enabled the RBZ to build reserves and maintain exchange rate stability through targeted interventions.
Mushayavanhu reiterated that Zimbabwe’s foreign currency reserves have more than doubled, increasing from US$285 million in April 2024 to over US$730 million by June 2025.
The RBZ plans to keep building reserves to meet the regional standard of 3 to 6 months of import cover, which is crucial for currency stability.
Mushayavanhu also mentioned a rise in the use of ZiG in both cash and electronic payments. He said:
“The stable macroeconomic conditions have also resulted in increased usage of ZiG in the economy.
“The proportion of ZiG in National Payment System electronic transactions rose from 26% in April 2024 to over 40% in June 2025, reflecting increased usage of ZiG.
“In addition, local currency cash usage in the economy has increased. In this regard, the Reserve Bank continues to ensure the wider availability of ZiG cash through the banking system.”
Zim GBC News©️2025