THE Confederation of Zimbabwe Industries is confident about the country’s economic trajectory, asserting that the prevailing macroeconomic stability provides a “great foundation” for a wholesale structural transformation of the economy.
This emerged during a post-Monetary Policy Statement breakfast meeting attended by senior officials from the Reserve Bank of Zimbabwe, the Ministry of Finance, Economic Development and Investment Promotion and key Government institutions.
CZI vice president Mrs Clara Mlambo delivered a call to delegates at the meeting to make industrial development the “central organising principle” of national strategy.
Mrs Mlambo commended the Government’s fiscal discipline, noting that spending has remained “very close to plan” despite a difficult operating environment. This discipline, she argued, has created the necessary conditions for the private sector to look beyond short-term stability toward long-term growth.
“But when we have stability, especially the stability for businesses to actually plan, do we recognise that stability is just a great foundation — while we pursue structural transformation as the final destination?” Mrs Mlambo said.
“The question that must now occupy our redirected attention is: what must come next if this stability is to endure? We are so focused on getting to stability as a destination. But once you’re there, what comes next? I think that’s actually where the focus has to be.”
The country’s most influential industrial lobby remains a staunch supporter of Zimbabwe’s journey towards monetary sovereignty. Mrs Mlambo argued that a robust manufacturing base was the most effective way to support a strong domestic currency.
“Industrialisation is the economic architecture that supports monetary sovereignty,” she said.
“Our competitive, export-oriented industrial economy generates sustained foreign exchange, deepens domestic value chains, creates employment, expands the tax base, and provides the transaction density that anchors demand for the domestic currency,” she said.
To achieve this, she called for a “whole-of-government” approach, where fiscal, monetary and trade policies are perfectly aligned with infrastructure investment and skills development. “I believe most of these are actually fully represented within this room,” she said, highlighting the collaborative spirit between the private sector and the Government.
“For this reason, industrial development must now become the central organising principle of our economic strategy – with alignment across fiscal policy, monetary policy, trade policy, infrastructure investment, skills development, regulatory coherence and institutional capacity. I believe most of these are actually fully represented within this room.”
Addressing the planned transition from a multi-currency system to a domestic mono-currency by 2030, Mrs Mlambo underscored the importance of “a positive pathway” towards achieving the necessary conditions.
The conditions—which include sustained low inflation and improved foreign reserves—are being addressed by the authorities, including achieving 3 to 6 months of import cover.
While the Reserve Bank currently holds approximately 1,5 months of import cover against the desired three to six months, the business community views the current conditions-based framework as a disciplined approach that preserves market confidence.
The CZI reaffirmed its dedication to working hand-in-hand with the Reserve Bank and the Ministry of Finance.
Mrs Mlambo emphasised that the transition must follow “the principle of discipline and a skill-based approach” to ensure that growth remains inclusive and durable.
“At CZI, we remain fully committed to constructive engagement with yourselves, the Reserve Bank, the Ministry of Finance, and all other arms of government – in support of policies that sustain stability, facilitate growth, and strengthen Zimbabwe’s macroeconomic management,” she said.
Her concluding message was one of national resilience and productivity: “A nation that produces competitively, exports consistently, and builds reserves continuously will be able to guard and defend its currency.”-newsda
