ZIMBABWEAN incomes from most typical livelihood sources continue to remain below average, leaving households with low purchasing power despite relative stability in exchange rates, a new report shows.
Over the past few months, both formal and parallel forex rates have remained fairly steady, driven by the Reserve Bank of Zimbabwe (RBZ)’s tight monetary policy. This contributed to a ZiG annual inflation rate of 3,8% in February, down from 4,1% in January, while US dollar–based inflation fell to 0,9% from 1% the previous
month.
While macro-economic indicators suggest relative stability, poor households continue to struggle. Low earnings from typical livelihood sources such as food crop sales, casual labour, remittances, and petty trade are limiting access to essential goods, highlighting the gap between national economic calm and household realities.
“Macro-economic stability has been sustained since early 2025. Formal and informal exchange rates have remained relatively steady, driving stable prices, with the premium between the formal and informal exchange rates now less than 20 percent, compared to nearly 100 percent in September 2024 when the local currency was devalued,” the Famine Early Warning Systems Network (Fews Net) said in the latest food security update.
Month-on-month inflation has averaged 0,4% in 2025, according to Zimbabwe National Statistics Agency data. The Confederation of Zimbabwe Industries described the trend as “sustained economic calm.”
“However, poor households continue to experience low purchasing power, which constrains their access to basic food and other goods and services. Income from most typical livelihood sources is below average, including food crop sales, casual labour, self-employment, remittances, petty trade, and sale of wild products such as Mopane worms,” it
said.
Despite this, seasonal agricultural labor is atypically low due to limited liquidity among wealthier households, reducing their ability to pay workers.
In-kind payments with crops or commodities are scarce. Above-average rainfall in January left some fields unworkable, and a dry spell from late January to February further constrained labor
demand.
On a brighter note, informal artisanal and small-scale mining, especially gold mining, is generating above-average income, with the informal sector increasing its contribution to national gold sales, buoyed by rising global gold prices.-newda
