ZIMBABWE’s 2025 economic performance has been marked by encouraging realities of macroeconomic stability, driven by disciplined monetary management and improved institutional coordination, Industry and Commerce Minister Mangaliso Ndlovu has said.
Minister Ndlovu said this while addressing delegates at the Zimbabwe National Chamber of Commerce (ZNCC) Business Review Conference yesterday, which also unpacked findings of the 2025 Annual State of Industry and Commerce Survey.
The Minister said inflation measured in ZiG terms has fallen below 20 percent, aligned with the Reserve Bank of Zimbabwe’s (RBZ) year-end targets, while the exchange rate has remained stable for more than a year.
He noted that progress recorded during the year shows that Zimbabwe is gradually repositioning itself for inclusive economic growth and long-term structural transformation.
Minister Ndlovu indicated that industry has begun to experience modest, but visible improvements in capacity utilisation, value chain development, and product quality.
He further added that reforms in regulatory administration, licensing and fees, together with improvements in the country’s quality infrastructure, have created a more enabling operating environment.
He said this position has been complemented by renewed private-sector appetite for retooling and innovation.
“The year 2025 has been characterised by encouraging lived realities of macroeconomic stability, underpinned by disciplined monetary management and strengthened institutional coordination.
“These are important achievements that restore confidence and provide a predictable planning environment for businesses and households.
“They also affirm that stability is neither accidental nor mysterious. Stability is a product of resolute commitment, consistency and collective discipline. What we must now ensure is that it becomes permanent and resilient as we move towards higher levels of productivity and competitiveness,” said Minister Ndlovu.
He, however, noted that NDS1 provided key lessons for policymakers, which include the need for patient and affordable capital to support long-term investment, rationalised regulatory costs, reliable energy supply, modern infrastructure, and efficient trade facilitation systems.
“Reflecting on the journey under the National Development Strategy 1, it is evident that meaningful progress has been made in repositioning Zimbabwe for inclusive economic growth and structural transformation. Industry has begun to record modest, but visible improvements in capacity utilisation, value chain expansion and product improvement.”
Minister Ndlovu reminded stakeholders that the National Development Strategy 2 (NDS2), which was launched on 27 November 2025, has a focus to deepen industrialisation as the country works toward Vision 2030.
Adding that the strategy places strong emphasis on export competitiveness, digital transformation, innovation and job creation.
As part of measures to support NDS2, the Ministry of Industry and Commerce will soon unveil the Zimbabwe National Industrial Development Policy 2 (ZNIDP 2), which replaces the Zimbabwe Industrial Reconstruction and Growth Plan, concluding this month.
The policy document is designed to drive the country toward higher-value manufacturing, modernised value chains, and technology-enabled industrial processes.
“It is important to take note of the valuable lessons NDS1 has taught us as a nation: that structural transformation demands not only policy clarity, but patient and affordable capital to support long-term investment. We also learnt that competitiveness cannot flourish where regulatory costs are excessive, fragmented, or unpredictable.
“Furthermore, industrial growth requires strong energy reliability, modern infrastructure, and seamless trade facilitation. These invaluable lessons, among others, are not setbacks, but rather insights that informed the next phase of our National Development Agenda implementation, NDS2,” he said.
This comes as Zimbabwe’s industrial capacity utilisation rose to 58 percent in 2025, up from 53 percent in 2024, showing improved macroeconomic conditions and growing business confidence.
Presenting the findings of the 2025 Annual State of Industry and Commerce Survey, Economist Mr Moses Chundu said the five-percentage-point jump was largely driven by relative macroeconomic stability and a more predictable exchange-rate system.
“The top lead in terms of drivers is macroeconomic stability, stable currency, and exchange rate. These are the biggest drivers, but it also means they are the most sensitive. If anything goes wrong with these two, we are back to 2024,” said Mr Chundu.
He noted that the major highlight of this year’s survey was the industry’s sentiment that the ZiG currency, which was introduced by the Government in April 2024, anchored the stability witnessed in 2025.
According to Mr Chundu, the acceptance of the ZiG was higher than expected, with almost 60 percent of respondents indicating they were using and accepting the currency in transactions.
He noted that 60 percent of businesses reported that the ZiG had improved their operating conditions, and 77 percent said the currency boosted their ability to plan, giving firms more confidence that the value of their account balances would hold over time.
Many companies also noted reduced pricing distortions, since they no longer needed to inflate US-dollar prices to hedge against losses in local-currency holdings.
“You can now plan . . . You can say I have got so much balance in my account, and it will be so after a couple of weeks. That is feeding into planning,” said Mr Chundu.
He said maintaining policy consistency, exchange-rate stability, and clear communication from authorities will be crucial to sustaining the gains reflected in the 2025 survey.
Despite the upbeat tone, the ZNCC survey also revealed lingering uncertainty about the long-term sustainability of the ZiG and the broader economic environment.
In his remarks at the event, ZNCC President Mr Tapiwa Karoro said Zimbabwe’s next stage of economic transformation will require deliberate action to build competitiveness, expand industrial scale, and strengthen sustained productive capacity across all sectors.
“To transform, we must move deliberately towards competitiveness, scale, and sustained productive capacity. The trends presented in this report underscore both how far we have come and how much more we must achieve,” said Mr Karoro.
Also speaking at the conference, RBZ Deputy Governor Dr Innocent Matshe said the central bank’s current monetary policy stance will continue to preserve the exchange rate and macroeconomic stability while supporting the country’s economic growth outlook.
Dr Matshe said the stability of the ZiG had restored much-needed predictability in business planning and economic forecasting.
He said the Bank’s policy measures will continue to anchor inflation and exchange rate expectations, thereby supporting the projected economic growth rate.
Deputy Governor Matshe further noted that money supply growth is contained and the central bank will continue to “walk the talk” by improving reserve levels in order to strengthen confidence in the local currency.
“The monetary policy measures are expected to anchor inflation and exchange rate expectations and support without compromising the envisaged economic growth prospects of 6,6 percent in 2025,” said Deputy Governor Matshe.
He said reserves backing the ZiG now cover reserve money more than four times, providing a strong buffer against volatility.
In the medium term, Dr Matshe said inflation expectations would remain firmly anchored, with annual inflation projected to fall into single digits in line with SADC convergence targets as the country moves into 2026.
The central bank maintains that sustained policy discipline, strong reserve backing, and a stable currency framework will remain key pillars in preserving macroeconomic stability and supporting Zimbabwe’s economic recovery momentum.-herald
