THE Zimbabwe National Chamber of Commerce says Zimbabwe’s macroeconomic stability is becoming entrenched, with ZiG inflation contained in single digits, the exchange rate stable and foreign currency reserves reaching US$2 billion.
The only constraint, ZNCC said, remains the constrained access to affordable finance for business expansion.
In its recent Weekly Business and Economic Highlights, the chamber said global risks persist while the domestic environment is improving. ZNCC said international oil markets remained sensitive to geopolitical developments and supply chain disruptions.
Elevated crude oil prices continue to sustain upside risks to transport, production and logistics costs globally, ZNCC said.
The business lobby said the global economy remains resilient despite heightened geopolitical uncertainty, but risks linger due to elevated energy prices, shipping costs and supply-side pressures.
In terms of monetary policy, the chamber said major central banks remain cautious to balance moderating inflation against sustaining economic growth.
Financial conditions remain relatively tight, ZNCC contends, with higher-for-longer interest rate expectations continuing to influence global capital flows and investment decisions.
“Inflation remains broadly contained. Annual ZiG inflation remains within single digits while US dollar inflation has continued to moderate, supporting price stability and business confidence.”
“The official foreign exchange market continues to exhibit relative stability, providing improved predictability for business planning and pricing decisions. The Reserve Bank of Zimbabwe maintained its policy stance aimed at preserving exchange rate and price stability while supporting productive sector growth.
“The policy rate remains at 27,5 percent, while the Targeted Finance Facility remains at 12,5 percent.”
ZNCC said foreign currency reserves remain around US$2 billion, equivalent to approximately two months of import cover, providing an important buffer against external shocks.
According to the lobby group, businesses continue to monitor global energy and commodity markets, particularly the risk of imported inflation arising from higher fuel and freight costs.
At 4,3 percent annual ZiG inflation in October, Zimbabwe remains within the RBZ’s year-end annual inflation target of 5-7 percent and inside the SADC 3–7 percent range.
ZNCC said mining continues to underpin export earnings and foreign currency generation.
“The strategic focus remains on beneficiation, value addition and increased domestic processing of minerals to enhance national economic value,” ZNCC said.
“Prospects for the 2026/27 agricultural season remain positive following improved rainfall forecasts and Government support programmes. However, input costs remain an important consideration for producers.
“Business sentiment continues to improve on the back of greater macroeconomic stability. However, access to affordable long-term finance remains a key challenge affecting capacity expansion, technology upgrading and investment.”
ZNCC said business confidence remains cautiously positive, supported by exchange rate stability and declining inflation, saying that firms continue to report improved currency predictability, which is assisting budgeting, pricing and investment planning.
However, access to affordable and appropriately structured funding remains the leading concern among businesses, while high lending rates continue to constrain investment, particularly among SMEs and firms seeking long-term capital expenditure financing.
The chamber proposed six measures that focus finance on productive investments, align finance with business cycles, expand bankability frameworks, risk-sharing mechanisms, reduce transaction costs and strengthen enterprise preparedness.
Zimbabwe’s economic stability is becoming entrenched, the chamber noted, with key macroeconomic indicators continuing to improve, creating a more predictable operating environment for businesses.
“Finance remains the major constraint: The affordability, accessibility and suitability of finance remain the most significant barriers to investment and expansion,” ZNCC said.
“Investment depends on demand growth: Future investment decisions will continue to depend largely on confidence in market demand, export opportunities and policy consistency.
“Productive capital formation is critical: The key challenge remains ensuring that available financial resources translate into increased production capacity, value addition, export growth and employment creation.”
ZNCC said the Common Market for Eastern and Southern Africa continues to offer important opportunities for Zimbabwean firms seeking export diversification and scale.
“Government officials and policymakers continued emphasising regional industrialisation, investment promotion, value addition and trade integration under the theme “One Market, One Future,” said ZNCC.
The economic impact of the regional push includes potential expansion of export opportunities for Zimbabwean businesses, greater scope for attracting regional investment, improved prospects for regional value chains in mining, agriculture and manufacturing, and enhanced visibility of Zimbabwe as an investment destination of choice within a market exceeding US$1 trillion gross domestic product.-herald
