The CEO Africa Roundtable has implored the Reserve Bank of Zimbabwe to cut the bank policy rate when it presents the 2026 Monetary Policy Statement on Friday, arguing that high borrowing costs are undermining business competitiveness and constraining access to finance.
The CEO Africa Roundtable high-level platform is designed for corporate chief executive officers and senior executives from both the private and public sectors to foster economic development across Africa.
Speaking after participating in the central bank’s Monetary Policy Statement review and consultative meeting last Friday, CEO Africa Roundtable chief economist Mr Tatenda Nyachega said a downward review of the benchmark policy rate would help ease lending rates and stimulate productive sector growth.
He said current lending rates in Zimbabwe remained significantly higher than those prevailing in the Southern African Development Community (SADC) region, placing local firms at a competitive disadvantage.
The bank policy rate, currently pegged at 35 percent, has played a key role in anchoring inflation expectations and stabilising the local currency.
However, local currency commercial lending rates ranging between 40 percent and 47 percent have curtailed borrowing across key sectors such as manufacturing, agriculture and trade.
With inflation expected to decline further in 2026, market participants are looking for a data-driven roadmap that outlines a gradual and measured path towards lower interest rates.
Following a year characterised by tight monetary conditions and relative exchange rate stability, the industry is now seeking clarity on the next phase of policy direction, specifically whether the central bank will begin easing interest rates in line with moderating inflation, while safeguarding the stability achieved so far.
“When you look at issues related to the banking rate, we firmly believe there is a need to review the policy rate downwards so that it also has a positive impact on lending rates.
“The whole essence is to ensure that we remain competitive when compared to other countries in the SADC region,” said Mr Nyachega.
According to the lobby group, US dollar commercial lending rates in Zimbabwe are hovering around 20 percent, markedly higher than regional peers.
In Namibia, lending rates average 10,25 percent, while Botswana’s are slightly below five percent.
Zambia’s rates are higher than Botswana’s but still compare more favourably than Zimbabwe’s in relative terms.
Business leaders argue that elevated borrowing costs are stifling investment, limiting working capital access and slowing expansion plans, particularly in capital-intensive sectors such as manufacturing, agriculture and mining.
The Roundtable said a reduction in the policy rate would transmit through to lower bank lending rates, creating a more supportive credit environment for industry and commerce.
Analyst Mr Tinevimbo Shava noted that while the central bank has prioritised price and exchange rate stability in recent policy cycles, pressure is mounting from industry for a calibrated shift towards growth-supportive measures.
“A review of the policy rate is critical to creating an environment that enhances access to finance for business and affordable credit remains central to driving productivity, job creation and regional competitiveness,” said Mr Shava.
The CEO Roundtable said it expected the Reserve Bank to carefully reflect on the recommendations submitted during the consultative process and strike a balance between maintaining macroeconomic stability and fostering private sector growth. herald
