The Reserve Bank of Zimbabwe (RBZ) has applauded the sustained decline in monthly inflation, describing it as a critical signal of improving macroeconomic stability and the effectiveness of ongoing monetary policy reforms. This positive trend is being observed across both local and foreign currency pricing systems and is being interpreted as a marker of increased investor confidence and prudent economic management.
According to the latest figures released by the Zimbabwe National Statistics Agency (ZimStat), Zimbabwe’s weighted average monthly inflation fell to 0 percent in May 2025—representing a 0.3 percentage point drop from the 0.3 percent rate recorded in April. This milestone suggests that price levels have stabilized for the time being, thanks to comprehensive monetary interventions implemented by the central bank in recent months.
The month-on-month inflation for US dollar-denominated prices also posted a notable decline, moving from 0.2 percent in April to -0.3 percent in May. This contraction further reinforces the broader disinflationary trend in the economy. However, prices in Zimbabwe’s local currency—the Zimbabwe Gold (ZiG)—rose slightly, with month-on-month inflation edging up to 0.9 percent from 0.6 percent in April. While still modest, the rise underscores the need for continuous monitoring and policy vigilance.
Speaking on behalf of RBZ Governor Dr. John Mushayavanhu at the Zimbabwe National Chamber of Commerce (ZNCC) 2025 Matabeleland Annual Business Awards (MABAs) held in Bulawayo, Deputy Governor Dr. Jesimen Chipika praised the downward inflation trajectory as evidence that the central bank’s policy measures are bearing fruit.
“Monthly inflation has consistently remained below three percent, which provides a more predictable and stable environment for long-term business planning and investment,” said Dr. Mushayavanhu in his address. “The RBZ has worked to maintain exchange rate and inflation stability, both of which are critical for building macroeconomic confidence.”
The Governor further noted that the premium on the parallel foreign exchange market has been held at a relatively stable 20 percent—an achievement that reflects the ongoing commitment to narrowing the gap between the official and parallel exchange rates. He added that the RBZ has continued to prioritize access to foreign currency for the importation of key capital and intermediate goods, which are necessary to drive industrial production and economic growth.
Between December 2022 and January 2025, Zimbabwe’s monthly import bill averaged around US$800 million. Of this, 70 percent was allocated to capital goods (US$140 million) and intermediate goods (US$470 million). These imports have helped boost industrial capacity utilization, which improved significantly from just 36.4 percent in 2020 to over 50 percent by 2021 and has remained stable since.
In his speech, Dr. Mushayavanhu emphasized that unlocking the country’s full economic potential will require stronger public-private collaboration. “Public-private partnerships are essential in shaping business-friendly policies, improving competitiveness, and investing in infrastructure and workforce development,” he said.
He also reaffirmed the RBZ’s dedication to promoting a market-determined exchange rate system through the willing-buyer, willing-seller (WBWS) interbank platform. Regulatory reforms implemented recently—including the removal of trading margins—are intended to deepen and strengthen the official foreign exchange market. These changes are expected to promote transparency, foster price discovery, and reduce reliance on informal currency trading.
RBZ Hails Decline in Inflation as Sign of Stabilizing Economy
The RBZ Governor expressed appreciation for the ZNCC’s continued engagement with the central bank, especially through its participation in Monetary Policy Provincial Stakeholder Engagements. These initiatives, he said, have helped to bridge the communication gap between monetary authorities and businesses at the grassroots level, improving the alignment of policy tools with local economic realities.
Representing the Minister of State for Bulawayo Provincial Affairs and Devolution, Judith Ncube, Deputy Director of Administration Mr. Julius Gwatiwa praised the ZNCC for organizing the awards and celebrating regional economic resilience. He noted that the theme of the event, “Unlocking Business Potential through Policy, Partnerships and Productivity,” reflected the aspirations of both the region and the nation at large.
ZNCC Matabeleland Vice President Mrs. Beauty Bhulu acknowledged that while businesses continue to grapple with challenges such as currency volatility, energy shortages, and pricing uncertainty, they have shown remarkable resilience. She commended the entrepreneurial spirit and adaptability of Zimbabwean businesses in confronting a difficult economic landscape.
The 2025 Matabeleland Annual Business Awards honored enterprises that have demonstrated excellence in innovation, resilience, and contribution to regional economic development. The awards recognized the commitment of Zimbabwean businesses not only to survive but to thrive amid adversity.
As inflation continues to decline and structural reforms take effect, the RBZ’s optimism reflects a broader hope that Zimbabwe’s economy is entering a new phase of stability, growth, and opportunity.
