ZIMBABWE’S economy grew by an estimated 8% in 2025, while foreign currency and gold reserves recorded sharp increases, with authorities attributing the strengthening macroeconomic stability to rising confidence in the ZiG currency, a Reserve Bank of Zimbabwe (RBZ) 2025 annual report has revealed.
The ZiG currency, introduced in 2024 as the latest attempt to establish a stable currency in over a decade, initially struggled for credibility.
The report comes as authorities continue pushing to build confidence in the currency.
However, in an interview with NewsDay, economist Godfrey Kanyenze said economic growth could happen with favourable weather, mineral prices and agriculture doing quite well.
“But our concern is not just with the quantum of growth. It is more to do with the quality of growth. With rising inequality, that growth is not inclusive, it is not shared and not broad-based,” he said.
According to the RBZ report, the economy’s recovery was supported by prudent monetary policy, export growth, strong foreign currency inflows and exchange rate stability.
“Monetary policy remained a key pillar underpinning economic recovery and macroeconomic stability,” RBZ said.
“Prudent monetary management, inflation and exchange rate stability were sustained, creating a predictable macroeconomic environment that supported economic recovery and growth.
“The economy is estimated to have grown by around 8% in 2025.”
RBZ attributed the growth to tighter monetary controls, improved liquidity management and stronger export performance, particularly from minerals such as gold.
“At the same time, robust export performance and rising foreign currency inflows significantly strengthened external sector performance.
“Through firm international mineral prices, particularly gold, foreign currency receipts increased markedly, improving foreign exchange market liquidity and facilitating the accumulation of reserves,” the report read.
The report also indicated that Zimbabwe’s total foreign currency earnings reached a record US$16 billion in 2025.
“The combined effect of export growth and stronger inflows materially reinforced the country’s external balance, supporting overall macroeconomic stability and anchoring the growth recovery,” RBZ said.
The report further noted significant growth in Zimbabwe’s foreign currency reserves, which RBZ said strengthened confidence in the ZiG and improved the country’s ability to cushion itself against external shocks.
“Building on the strategy initiated in 2024, the bank made substantial progress in building gold and foreign currency reserves to anchor the local currency.
“Foreign currency reserves grew from US$285 million in April 2024 to US$1,2 billion by the end of December 2025,” the report stated.
Gold reserves also expanded sharply over the same period.
“Gold holdings grew from 1,5 tonnes to 4,03 tonnes, with the expansion significantly strengthening national reserve buffers and enhancing the economy’s resilience against external shocks,” RBZ said.-herald
