THE Zimbabwe National Chamber of Commerce commended the tight monetary policy for restoring macroeconomic and exchange rate stability, and called for sequenced business reforms to unlock cheaper credit, deepen confidence in the local currency and sustain strong growth.
In its 2026 Monetary Policy Statement submission, ZNCC said the Reserve Bank of Zimbabwe’s policy framework had delivered tangible stability, despite its high interest regime constraining productive borrowing.
The chamber pointed to a sharp improvement in headline inflation, projecting that annual inflation below 10 percent in 2026 would create space for a gradual easing cycle of the punitive interest levels.
ZNCC endorsed the Government’s focus on monetary discipline, coordination and the avoidance of policy reversals that previously undermined public and market confidence.
The business lobby, however, noted the impact of the tight monetary policy regime on the cost of credit in the country.
“The Bank Policy Rate of 35 percent, while justified on inflation expectations, has translated into ZiG lending rates of 40–47 percent, significantly constraining access to credit for productive sectors,” ZNCC said.
The central bank is on record saying it will not rush to cut interest rates without assurance that the drop in inflation will be durable to avoid undoing the stability gains achieved since relaunching the foreign currency and gold-backed local currency in April 2024.
It said that the stance had nonetheless been effective in anchoring inflation and stabilising the currency.
The annual inflation fell from 95,7 percent in April last year to close 2025 at 12 percent, dropping further to 4,1 percent in January this year. Strong growth would, however, require lower interest rates.
“Slower growth necessitates lower rates to stimulate activity,” ZNCC said, adding that rate cuts should be data contingent and aligned with inflation outcomes to avoid distorting real borrowing costs.
In addition, ZNCC praised Treasury’s fiscal restraint, describing the projected 2026 budget deficit of 0,2 percent of gross domestic product as interest rate friendly, as it reduces pressure on domestic credit markets.
ZNCC also welcomed the Government’s proposal to convert part of the domestic debt stock into long-term instruments, saying clarity and transparency would be critical to maintaining credibility.
“If the Government fails to manage these arrears transparently, it may still be forced to issue treasury bills or rely on central bank overdrafts.”
The SAID the ZiG had recorded wider transactional use, crediting the gains to policy discipline rather than administrative shortcuts.
“The ZiG has recorded increased acceptance in transactions, largely underpinned by recent macroeconomic and exchange rate stability achieved through a tightened monetary policy stance.”
ZNCC’s assessment supports the Government’s view that stability must precede reform, not follow it.
The lobby group ZNCC acknowledged lingering scepticism rooted in historical disruptions and structural constraints.
“Business confidence in the long-term sustainability of this stability remains fragile,” the ZNCC said, citing limited foreign exchange reserves and past policy inconsistencies.
Rather than opposing policy direction, the lobby group framed the issue as one of sequencing and confidence-building.
On currency, ZNCC warned against abrupt shifts that could destabilise recent gains.
“De-dollarisation should be earned through sustained stability, not legislated through compulsion,” the chamber said, calling for incentives rather than mandates.
It recommended retaining the multicurrency system as a confidence buffer while progressively strengthening ZiG’s transactional and savings role.
The chamber urged authorities to continue prioritising reserve accumulation, saying at least three months of import cover should be a credibility threshold before advancing a monocurrency agenda.
“Without adequate reserve buffers and credible convertibility, forced de-dollarization would undermine business planning, contract certainty, and investment confidence,” it warned.
ZNCC also commended the Government’s broader reform agenda, proposing targeted refinements to taxation and banking regulations to improve policy transmission.
ZNCC said laws compelling tax payments in the currency of trade signal weak confidence in ZiG and recommended reviewing sections of the Finance Act and VAT Act to allow cross-currency VAT offsetting using prevailing exchange rates.
It urged the RBZ, “To intensify its campaign to persuade financial institutions to reduce bank charges and to enforce transparency on non-funded income,” to promote financial inclusion.
Commenting on the new digital tax, ZNCC welcomed engagement by the Treasury and regulators, while noting early implementation challenges that culminated in widespread customer complaints.
It recommended alignment of digital taxation with the national goal of formalisation and cashless payments, a priority already identified by the Government.
Overall, the Chamber said sustained discipline, transparent reform and policy coordination remained the surest path to growth.-herald
