Staff Reporter
At a high-profile breakfast meeting, held at the Hyatt Regency Hotel (formerly Meikles Hotel) today, the progress of Zimbabwe’s local currency (ZiG), since its reintroduction, was brought into sharp focus.
The event, organized by the Zimbabwe Economic Society (ZES) in partnership with Friedrich-Ebert Stiftung (FES), was attended by key stakeholders from various sectors of the economy, including Government officials, economists, and industry leaders. The topic under discussion was the Mid-Term Fiscal Policy Review: Towards Macroeconomic Stability in Zimbabwe.
Delivering the keynote address, the Permanent Secretary in the Ministry of Finance, Economic Development, and Investment Promotion, Mr. George Guvamatanga highlighted the strides made by the Zimbabwean dollar in stabilizing the economy.
“Since the reintroduction of our local currency, we have witnessed significant growth, particularly in remittances, which have surged by over 20% in the first half of 2024 alone. This has contributed ZWL 500 billion to the national economy, playing a critical role in supporting households and driving consumer spending,” said Guvamatanga.
He also pointed to the banking sector’s resilience, noting that credit to the private sector had increased by 18% year-on-year.
“The stability of the Zimbabwean dollar has enhanced the banking sector’s capacity to lend, leading to improved liquidity and a stronger financial system. Government is committed to maintaining this stability through prudent fiscal and monetary policies,” he echoed
Similarly, Dr. Tapiwa Mashakada, an economist and Executive Director of the Zimbabwe Economic Society, echoed these sentiments, noting that the growth in remittances was a clear sign of increasing confidence in the Zimbabwean dollar.
“The upward trend in remittances shows that the diaspora is beginning to trust our currency again, which is a positive sign for our economy. Government should continue to implement measures that would further stabilize the currency and promote economic growth,” he urged.
On the sidelines of the event, this publication spoke with Patience Chuma, the Head of Finance at Tongaat Hulett, who praised Government’s efforts in stabilizing the currency but cautioned against complacency.
“The progress is encouraging, but we need to remain vigilant and ensure that inflation is kept in check to sustain this momentum,” Chuma remarked.
Other participants at the event also weighed in on the discussion. A senior economist at a leading commercial bank, who requested anonymity, pointed out that the increased usage of the Zimbabwean dollar in everyday transactions was a step in the right direction.
“The more people use the local currency, the more stable it becomes. We are seeing a gradual shift in public perception, which is crucial for long-term stability,” he said. The meeting concluded with a call for continued dialogue between the Government and the private sector to ensure that the gains made so far are not only sustained but built upon, as Zimbabwe continues its journey toward macroeconomic stability.
