THERE has been a surge in local businesses’ confidence in the domestic currency and macroeconomic stability, key factors in planning, investment and employment decisions, the Confederation of Zimbabwe Industries (CZI) says.
Zimbabwe’s influential business lobby group has also noted the positive nexus between the growing stability and job creation.
The improved economic stability has ushered in a significant downward trend in the annual inflation rate, which dropped from a high of over 95 percent in July to 19 percent in November 2025.
Low monthly inflation for the ZiG currency, averaging around 0,5 percent from February to September 2025, also demonstrates the growing stability during that period.
Similarly, the ZiG exchange rate has remained largely unchanged, trading at circa 26,7 to the greenback for most of this year.
In its 2025 third-quarter Business Environment Insights, CZI noted a marked improvement in confidence in the ZiG, reflecting the positive impact of tight monetary discipline and durable exchange rate stability.
Zimbabwe introduced the gold and foreign currency-backed ZiG early in April last year following relentless bouts of high inflation and exchange rate volatility.
But in what shows rapidly shifting trends and improving sentiments, at least two-thirds of businesses in the country expect their performance to improve this year.
CZI’s survey shows that, “Approximately 35 percent of respondents expressed confidence in ZiG stability, a sharp improvement from only 10 percent who were optimistic about ZiG stability during the third quarter of 2024”.
Businesses surveyed said the recent period has provided a degree of predictability that had been missing for years.
According to the report, “Firms acknowledge that the RBZ’s current policies, such as tight control of money supply through halting quasi-fiscal operations and controlling interest rates, have helped to control inflation and exchange rate pressures and anchor stability for now”.
CZI notes that this period represents the longest stretch of exchange rate and inflation stability since the reintroduction of a local currency in 2016, allowing companies to price goods more confidently, plan production schedules and reduce speculative behaviour.
The organisation says this stability has helped restore short-term confidence even among firms that remain cautious about the long-term future of the currency.
While confidence is rising, it remains measured. The report shows that about 35 percent of firms are neutral on ZiG stability, reflecting what CZI describes as a wait-and-see attitude among businesses that make limited use of the local currency in daily operations.
“These firms indicated that the US dollar remains the dominant medium of exchange, making it difficult to assess or forecast the future of the ZiG”, CZI noted.
A further 30 percent of firms remain sceptical.
According to CZI, these businesses believe that the current stability is artificial and unsustainable, arguing that it is being supported by strict monetary controls, restricted liquidity and delayed payments to suppliers and contractors rather than underlying market confidence.
“Some firms warned that once the Government begins releasing larger amounts of ZiG into circulation, the currency could quickly lose value”, the report added.
Despite these reservations, CZI says the prevailing stability is beginning to deliver tangible economic benefits.
The report concludes, “There are signs that the stability that has characterised the operating environment has translated into some positive spinoffs on business performance”.
During the first nine months of 2025, average turnover across surveyed firms increased by 2,4 percent compared to the same period last year, with nearly half of businesses reporting higher revenues.
Investment activity also strengthened, with total capital expenditure rising from US$112 million in 2024 to US$127,5 million in 2025.
CZI notes that this reflects greater investment intensity, as firms that chose to invest committed larger amounts of capital.
Business sentiment for the remainder of the year remains upbeat.
The survey shows that about 60,5 percent of respondents indicated that their performance is expected to improve, while only 10 percent anticipate a decline, underscoring growing confidence that stability will persist.
The improving operating environment has also translated into positive labour market outcomes.
According to CZI, “Approximately four new permanent jobs were created per firm while two permanent employees were retrenched per firm during the first nine months of 2025.
“This resulted in a positive net job creation of two employees per firm”.
Agriculture and horticulture, construction and manufacturing emerged as the leading job creators, reinforcing their role as anchors of economic activity.
The report also highlights that job creation increases with firm size, noting that large firms created an average of 10 jobs per firm, compared to four for medium firms and two for small firms.
In its conclusion, CZI said the link between stability and employment was becoming clearer, adding that a stable macroeconomic environment is one of the methods the Government can use to drive employment creation.
Sustained fiscal and monetary discipline, CZI says, will be critical to preserving recent gains and strengthening confidence further.-herald
