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HARARE – Zimbabwe’s economy remains on track to achieve its projected 5 percent real GDP growth this year, supported by resilience in mining, a stabilising agricultural sector, and ongoing policy reforms aimed at improving the investment climate, government officials and economists have said.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has maintained in the 2026 National Budget Statement that the economy is expected to expand by 5 percent, driven primarily by agriculture recovery, strong mining output and continued reforms aimed at improving the ease of doing business.

He said Government has intensified engagement with emerging multilateral lenders as part of efforts to broaden financing channels for economic development and reduce reliance on traditional funding sources.

Stability Despite Global Volatility

Speaking at the Mid-Term Economic Review and High-Level Policy Dialogue in Harare, organised by Africa Economic Development Strategies (AEDS), board chairman Dr Farai Matanhire said Zimbabwe’s macroeconomic environment is showing signs of consolidation despite significant global uncertainty.

The forum brought together policymakers, private sector executives and development experts to assess first-half economic performance and inform upcoming fiscal and monetary policy reviews.

“Zimbabwe is uniquely exposed to the turbulence of global fragmentation,” Dr Matanhire said. “Escalating trade disputes, shifting alliances and regional conflicts are no longer distant. They translate into real domestic challenges — volatile commodity prices, disrupted supply chains and constrained access to global financial markets.”

Despite these external pressures, he said domestic economic indicators are improving, supported by targeted regulatory interventions and tighter monetary policy management.

Inflation Stability and Reserve Build-Up

According to AEDS, one of the key anchors of current stability is the Reserve Bank of Zimbabwe’s tight monetary stance, which has helped ease inflationary pressures and stabilise expectations across the economy.

Year-on-year inflation has reportedly declined to approximately 4,7 percent, placing it within single-digit territory and contributing to improved business planning certainty.

Foreign currency reserves, now estimated at over US$1,5 billion, are also providing what analysts describe as a more predictable macroeconomic buffer for import cover and exchange rate management.

Dr Matanhire said the combination of lower inflation and stronger reserve accumulation is gradually restoring confidence among investors and businesses.

Mining and Structural Reforms Driving Growth

Mining continues to play a dominant role in Zimbabwe’s external earnings, accounting for more than 70 percent of export receipts, with increased global demand for critical minerals such as lithium, gold, platinum group metals and chrome underpinning sector performance.

Policy analysts argue that Zimbabwe’s positioning within global mineral supply chains presents a strategic opportunity, particularly as advanced economies accelerate the transition towards green technologies and electric mobility.

Dr Matanhire said recent domestic reforms have also contributed to improved investor sentiment, including the abolition of selected trading levies, a temporary suspension of certain mining exploration fees, and the rollout of a computerised mining cadastre system designed to improve transparency in mineral rights administration.

He added that the Government’s policy shift towards domestic beneficiation—particularly in lithium processing and mineral concentrate regulations—is beginning to retain more value within the local economy rather than exporting raw materials.

Growth Outlook Depends on Structural Integration

While acknowledging the positive macroeconomic trajectory, AEDS cautioned that sustaining 5 percent growth will require deeper structural reforms to insulate the economy from external shocks.

The think tank emphasised the need for stronger domestic value chains, improved industrial linkages, and enhanced economic diversification beyond extractive industries.

“Together, let us consolidate our economic gains, reinforce confidence, and build a diversified, shock-resistant economy,” Dr Matanhire said.

Economists note that while stability provides a foundation for growth, long-term expansion will depend on productivity gains, investment inflows, and the ability to translate mineral wealth and agricultural output into higher-value industrial production.

As Zimbabwe moves into the second half of the fiscal year, attention is expected to shift towards whether macroeconomic stability can successfully transition into sustained structural transformation and job-creating growth.

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HARARE – First Mutual Holdings Limited (FMHL) has concluded the acquisition of minority shareholdings in First Mutual Properties Limited (FMP), paving the way for the property investment company to formally exit the Zimbabwe Stock Exchange (ZSE) after more than two decades as a listed entity.

The transaction will see FMHL pay approximately US$1.31 million to minority investors who accepted the voluntary cash offer of US$0.033 per share, bringing to a close a process that was approved by shareholders earlier this year.

According to FMP, shareholders tendered valid acceptances for approximately 39.65 million shares, with settlement expected within seven business days through electronic bank transfers, subject to applicable statutory deductions. Ownership of the shares was transferred on 1 July.

The delisting became effective after the company fulfilled all regulatory requirements and obtained shareholder approval during an Extraordinary General Meeting held in June.

Strategic Consolidation

The transaction strengthens FMHL’s control over one of Zimbabwe’s established commercial property investment companies, simplifying the group’s corporate structure and allowing management to make strategic decisions without the reporting and compliance obligations associated with a public listing.

For FMHL, full operational control provides greater flexibility in managing FMP’s portfolio of office, retail and industrial real estate, while creating additional scope to restructure assets, optimise capital allocation and pursue longer-term property investment strategies outside the scrutiny of quarterly market expectations.

Although FMP will no longer trade on the Zimbabwe Stock Exchange, the company will continue operating as an unlisted public company under its existing corporate framework.

Minority shareholders who chose not to participate in the buyout will retain their shareholdings. The company said arrangements for an over-the-counter (OTC) trading platform to facilitate future transactions in the remaining shares will be announced at a later stage.

Reflecting a Changing Capital Market

FMP’s departure extends a growing pattern of companies opting to delist from the Zimbabwe Stock Exchange as controlling shareholders seek greater strategic flexibility amid evolving market conditions.

While public listings traditionally provide companies with access to equity capital and enhanced corporate visibility, they also impose ongoing disclosure requirements, governance obligations and listing costs. For firms with concentrated ownership structures, particularly where public trading volumes are relatively thin, the benefits of remaining listed may no longer outweigh these costs.

Corporate finance analysts note that delisting can enable businesses to implement long-term investment strategies, undertake internal restructuring or reposition assets without the pressures of short-term market performance.

The trend has prompted renewed debate about the depth and liquidity of Zimbabwe’s capital markets, with market participants increasingly calling for broader reforms aimed at improving investor participation, enhancing market liquidity and attracting new listings.

Property Sector Outlook

FMP exits the exchange with a diversified portfolio spanning office buildings, retail centres and industrial properties across Zimbabwe, assets that continue to generate rental income despite changing dynamics within the commercial property market.

The sector has increasingly shifted towards mixed-use developments, logistics facilities and industrial real estate, while traditional office properties continue to adjust to evolving workplace trends and changing tenant demand.

As an unlisted entity, FMP is expected to continue focusing on portfolio optimisation, property development opportunities and asset management while benefiting from the operational flexibility afforded by its new ownership structure.

Its departure from the ZSE marks the end of a 22-year chapter in Zimbabwe’s listed property investment sector, while reinforcing the broader trend of corporate consolidation reshaping the country’s equity market.

The post FMHL Completes FMP Buyout as Property Firm Ends 22-Year Run on Zimbabwe Stock Exchange appeared first on The Zimbabwe Mail.

HARARE – Zimbabwe has entered what government officials and several economists describe as an unprecedented period of macroeconomic stability, creating a more predictable operating environment for businesses after years of exchange rate volatility and high inflation. However, analysts say sustaining the gains will require continued fiscal and monetary discipline alongside deeper structural reforms that stimulate investment, industrialisation and productivity.

Speaking during the Mid-Term Economic Review and High-Level Policy Dialogue in Harare, organised by the Africa Economic Development Studies (AEDS), Reserve Bank of Zimbabwe (RBZ) Deputy Governor Dr Innocent Matshe said the country’s macroeconomic framework has remained stable since the introduction of the Zimbabwe Gold (ZiG) currency in September 2024.

According to Zimbabwe’s State media, the central bank believes the stabilisation of the ZiG has significantly reduced inflation, stabilised the exchange rate and restored predictability to the domestic business environment, conditions regarded as essential for long-term investment and economic planning.

“The era of speculating on currency is over,” Dr Matshe said, warning businesses and borrowers against expectations of a sharp depreciation that would erode the real value of local currency obligations.

The RBZ projects Zimbabwe’s foreign currency reserves will reach approximately US$2 billion by year-end, up from about US$1.6 billion currently, improving the country’s import cover while strengthening confidence in the monetary framework.

Dr Matshe said the economy is expected to expand by around five percent this year. Although this would represent slower growth than the estimated 8.3 percent recorded in 2025, he argued that Zimbabwe remains among the fastest-growing economies in Southern Africa.

Stability Changes Business Decision-Making

For the private sector, macroeconomic stability is arguably more valuable than exceptionally high but volatile growth.

Businesses make investment decisions over multi-year horizons. Stable inflation, a relatively predictable exchange rate and consistent monetary policy allow manufacturers, retailers, exporters and financial institutions to forecast costs more accurately, negotiate longer-term contracts and undertake capital investment with greater confidence.

Years of currency instability forced many companies to adopt defensive strategies focused on inventory preservation, exchange rate hedging and short-term trading rather than expanding productive capacity. A more stable macroeconomic environment has the potential to redirect corporate capital towards factory expansion, technology upgrades, logistics infrastructure and export development.

Economists note that sustained macroeconomic stability also lowers sovereign risk, improves investor confidence and reduces financing costs over time, although these benefits depend on policy consistency.

Industrialisation Now Takes Centre Stage

With macroeconomic stability increasingly viewed as an established policy objective, attention is shifting towards industrial transformation.

Representing the Minister of Industry and Commerce, Acting Director for Heavy Industries Ms Ruvimbo Sandauke said the next phase of economic policy should focus on expanding domestic manufacturing capacity, promoting local content, supporting value addition and increasing export diversification.

The transition reflects a broader economic principle: stabilisation creates the conditions for growth, but industrialisation generates long-term prosperity through productivity gains, employment creation and higher-value exports.

For Zimbabwe, sectors such as mining beneficiation, agro-processing, manufacturing and renewable energy are expected to play increasingly important roles in translating macroeconomic stability into inclusive economic growth.

External Risks Remain

Despite improving domestic indicators, economists cautioned that Zimbabwe continues to operate within an increasingly uncertain global economic environment.

AEDS Board Chairman Dr Farai Matanhire noted that geopolitical tensions, global trade fragmentation and supply chain disruptions continue to present significant external risks to developing economies.

“Escalating trade disputes, shifting alliances and regional conflicts are no longer distant events,” he said. “They increasingly influence domestic commodity prices, supply chains and access to international capital.”

Nevertheless, he argued that recent regulatory reforms have helped reduce investment uncertainty. Among the measures highlighted were the abolition of selected trading levies, the temporary suspension of certain mining exploration fees and the implementation of a digital mining cadastre system aimed at improving transparency in mineral rights administration.

Dr Matanhire also pointed to Zimbabwe’s growing emphasis on domestic mineral beneficiation, particularly within the lithium industry, where policies encouraging local processing are intended to capture greater value from global electric vehicle supply chains.

Managing Monetary Expansion

While welcoming the improved macroeconomic environment, economist Brains Muchemwa urged policymakers to remain cautious regarding money supply growth.

He observed that annual money supply expansion of approximately 40 percent should continue to be carefully managed to preserve inflation stability and maintain confidence in the domestic currency.

Dr Matshe responded that monetary expansion should be viewed within the context of an expanding economy emerging from a relatively small monetary base. Faster economic growth, he argued, naturally requires greater liquidity to support increased production, investment and commercial activity.

The challenge for policymakers will be ensuring that liquidity growth remains aligned with productive economic activity rather than fuelling speculative demand or inflationary pressures.

Stability Alone Is Not Enough

Although Zimbabwe’s recent macroeconomic performance represents one of its most stable periods in years, economists broadly agree that stability is only the first stage of economic transformation.

Long-term prosperity will ultimately depend on whether policy consistency translates into increased domestic investment, higher industrial productivity, stronger export competitiveness, greater private-sector confidence and sustained employment creation.

The upcoming Mid-Term Fiscal Policy Review and Monetary Policy Statement are therefore expected to provide important signals on how Government intends to consolidate current gains while accelerating structural reforms capable of transforming macroeconomic stability into durable economic development.

According to Zimbabwe’s State media, the improved policy environment has also prompted AEDS, in partnership with the Ministry of Industry and Commerce and ZimTrade, to organise the Zimbabwe Industrialisation Conference and Expo 2026, reflecting growing emphasis on translating economic stability into industrial expansion and export-led growth.

The post Zimbabwe’s Macroeconomic Stability Marks Turning Point, but Growth Will Depend on Structural Reforms appeared first on The Zimbabwe Mail.

MAPUTO,- Mozambique’s Daniel Chapo, announced that the European Union will contribute to the financing of Rwanda’s mission to combat terrorism in Cabo Delgado.

The Head of State explained that “the operations of the Rwandan forces will be funded by public funds and those coming from the European Union itself, as has always been done, both for Rwanda and for our own Security Forces through training,” Daniel Chapo explains.

The Head of State recalled that the European Union does not provide support in lethal military equipment and guaranteed that, at this moment, negotiations are underway for the continuity of the agreements.

In addition to seeking solutions to terrorism through military means, Daniel Chapo also committed to mobilizing funds for the reconstruction of Cabo Delgado, a province with various infrastructures destroyed.

At the press conference, the President of the Republic repeated his promise to use all means at his disposal to prevent the war from compromising the country’s development plans.

“The Government keeps all avenues open to achieve stability, including the possibility of talks,” the Head of State guaranteed.

“It is very difficult to predict when terrorism will end. That is why we said that we are doing everything within our power, including the possibility of dialogue, to end terrorism. What we would like is for it to end, and its conclusion will therefore allow us to be at peace, and peace is the fundamental condition for development,” the Head of State emphasized.

Source: O País

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BULAWAYO – Although the government’s previous blueprint for the Cold Storage Commission (CSC) ultimately failed to achieve its intended objectives, the institution’s original strategic rationale remains highly relevant to Zimbabwe’s contemporary agricultural economy.

By Our Insights Team

Rather than viewing the CSC solely through the lens of its unsuccessful partnership with Boustead Beef, policymakers should revisit its underlying purpose and redesign it to address one of the country’s most persistent agricultural challenges—post-harvest losses.

Zimbabwe continues to lose substantial agricultural value every year because of inadequate cold-chain infrastructure. While successive agricultural programmes have focused on increasing production, significantly less attention has been devoted to preserving produce after it leaves the farm. As a result, thousands of tonnes of high-value fruits, vegetables, dairy products and other perishables never reach formal markets in optimal condition, eroding farmer incomes and weakening national food security.

For Zimbabwe’s smallholder farmers, the absence of affordable cold storage remains one of the greatest barriers to commercialisation. Many producers cultivate quality crops but are forced to sell immediately after harvest at depressed prices because they lack access to refrigerated storage or temperature-controlled transport. This market imbalance disproportionately benefits middlemen, who purchase produce cheaply before reselling it at considerably higher margins in urban centres.

The financial implications are significant. Without cold-chain infrastructure, farmers are unable to determine the timing of sales based on favourable market prices. Instead, they become price takers, compelled to dispose of highly perishable produce before spoilage sets in. The result is lower household incomes, greater food waste and reduced returns on both public and private investment in agriculture.

Several local agritech companies have attempted to bridge this infrastructure gap by establishing community cold-storage facilities and refrigerated logistics services. However, cold-chain infrastructure is among the most capital-intensive segments of agricultural logistics. Cold rooms, refrigeration systems, backup power, refrigerated trucks and maintenance require substantial upfront investment, making nationwide expansion commercially challenging without long-term patient capital or public-sector support.

This is where the original CSC concept deserves renewed consideration.

Instead of functioning as a centrally managed meat-processing monopoly, a modernised CSC could evolve into a national agricultural logistics utility specialising in cold-chain infrastructure. Such an institution would not compete with private businesses but rather provide shared infrastructure that enables private agricultural enterprises to flourish.

Under this model, strategically located regional cold-storage hubs could be established across major agricultural production zones. These facilities would serve horticultural producers, dairy farmers, poultry operators, fisheries, meat processors and other agricultural value chains requiring temperature-controlled storage and transport. Farmers would pay user fees that are significantly lower than the cost of owning individual cold-storage facilities, allowing even small-scale producers to participate in formal markets.

The model would also strengthen Zimbabwe’s agricultural export ambitions. International buyers increasingly demand strict compliance with cold-chain standards from farm gate to final destination. Without reliable temperature-controlled logistics, Zimbabwe risks losing competitiveness in regional and international export markets despite producing high-quality agricultural products.

A decentralised cold-chain utility would further encourage agro-processing industries to establish operations closer to production centres. Reduced post-harvest losses would improve supply consistency for processors, retailers and exporters while stimulating investment in rural economies through new employment opportunities and expanded value-addition activities.

Beyond commercial considerations, the economic benefits would extend to national food security. Reducing food losses effectively increases available food supply without requiring additional land, fertiliser or irrigation investment. In a climate increasingly characterised by droughts and weather-related production shocks, preserving existing agricultural output may prove just as important as increasing production itself.

The lessons from the CSC’s past therefore extend far beyond livestock. The institution’s original strategic value lay in recognising that agricultural infrastructure is a public economic asset capable of transforming entire value chains. While its previous operational model may no longer suit today’s market realities, its core concept remains economically sound.

A restructured CSC should no longer be viewed as a meat-export enterprise, but as a national cold-chain utility supporting Zimbabwe’s broader agricultural transformation. By shifting from a rigid, centralised monopoly towards a decentralised, shared logistics platform, the government could unlock greater productivity among smallholder farmers, reduce post-harvest losses, strengthen food security and improve the competitiveness of Zimbabwe’s agricultural exports.

As Zimbabwe seeks to modernise its agricultural sector, investment in cold-chain infrastructure may ultimately deliver greater economic returns than many production-focused interventions. The challenge is no longer simply producing more food—it is ensuring that what is produced reaches consumers and export markets in the highest possible quality and value.

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