Zim News Blog -NEWS NETWORK

HARARE – The Reserve Bank of Zimbabwe (RBZ) has eased its monetary policy stance for the first time this year, cutting the Bank Policy Rate by five percentage points to 30%, citing subdued inflation, exchange rate stability and robust foreign currency inflows that have strengthened confidence in the economy.

The decision was announced following a meeting of the Monetary Policy Committee (MPC) on June 15, which reviewed domestic and global economic developments and concluded that prevailing macroeconomic conditions warranted a measured reduction in borrowing costs while maintaining overall monetary discipline.

The MPC also reduced the interest rate on the Targeted Finance Facility from 20% to 15%, a move expected to support productive sectors of the economy by lowering financing costs and encouraging investment.

In its Monetary Policy Statement, the committee said the decision was underpinned by continued price stability and improving external sector performance.

“The prevailing macroeconomic environment, characterised by low and stable inflation, exchange rate stability, improved foreign currency inflows and adequate reserve accumulation, provides scope for a calibrated easing of monetary policy while safeguarding macroeconomic stability,” the MPC said.

Annual inflation stood at 4.8% in May 2026, remaining below the central bank’s medium-term target threshold of 5%. Although higher than the negative inflation rate of 4.4% recorded in April, the MPC noted that inflationary pressures remained largely contained.

The central bank attributed the favourable inflation outlook to stable exchange rates, prudent liquidity management, improved availability of foreign currency and declining international oil prices, which have eased imported inflationary pressures.

The policy easing comes as Zimbabwe continues to record strong foreign currency earnings from exports, diaspora remittances and investments.

According to the RBZ, foreign currency inflows rose by 39.1% to US$8.3 billion during the first five months of 2026, compared to US$6 billion recorded during the same period last year.

The surge in foreign exchange receipts has significantly strengthened the country’s external position and contributed to the accumulation of reserves backing the Zimbabwe Gold (ZiG) currency.

The MPC revealed that reserves supporting the ZiG had surpassed US$1.5 billion, providing import cover equivalent to approximately one-and-a-half months and reinforcing confidence in the country’s latest currency regime.

“The sustained growth in foreign currency receipts and reserve accumulation has enhanced the resilience of the economy and strengthened the backing of the ZiG currency,” the committee noted.

The exchange rate has remained relatively stable since the beginning of the year, trading within a narrow band of between ZiG25 and ZiG27 to the United States dollar.

Economists view exchange rate stability as one of the most significant achievements of Zimbabwe’s current monetary framework, particularly given the country’s long history of currency volatility and inflationary shocks.

The MPC maintained its 2026 economic growth forecast at 5%, supported by strong mining output, improved agricultural production, infrastructure investments and continued expansion in manufacturing and services sectors.

Analysts say the reduction in interest rates could provide a welcome boost to business activity, particularly for productive sectors that have struggled with high financing costs under Zimbabwe’s tight monetary policy regime.

Lower borrowing costs are expected to improve access to capital for manufacturers, exporters, farmers and small-to-medium enterprises, potentially accelerating investment and job creation.

However, the central bank signalled that it remains committed to maintaining a cautious approach to liquidity management to prevent a resurgence of inflationary pressures.

As part of that strategy, the MPC left statutory reserve requirements unchanged at 30% for demand and call deposits and 15% for savings and time deposits, preserving an important liquidity-control mechanism within the banking sector.

The committee stressed that while conditions now permit a modest easing of monetary policy, vigilance remains necessary amid an uncertain global environment marked by geopolitical tensions, fluctuating commodity prices and evolving financial market conditions.

For businesses and investors, the latest policy adjustment signals growing confidence by monetary authorities that Zimbabwe’s inflation and exchange rate stabilisation efforts are gaining traction. The challenge going forward will be sustaining that stability while ensuring cheaper credit translates into increased productive investment, export growth and broader economic expansion.

With inflation remaining below target, reserves strengthening and foreign currency inflows reaching record levels, the RBZ appears increasingly focused on supporting economic growth without compromising the hard-won gains in macroeconomic stability achieved over the past year.

The post Zimbabwe Central Bank cuts policy rate to 30% as inflation remains contained and foreign currency inflows surge appeared first on The Zimbabwe Mail.

Zimbabwe finds itself grappling with a persistent and alarming wave of armed robberies, with police recording a staggering 1,282 incidents in the past year. This figure, while representing a slight decrease from the 1,340 cases reported in 2024, remains unacceptably high, prompting a stern call for collective action from law enforcement and the private sector. […]

The post Armed Robbers in 1,282 ‘Inside Job’ Heists Across Zimbabwe, Police Commissioner Paul Nyathi Worried! first appeared on My Zimbabwe News.

Source: CAB 3 bribes rock Zanu PF -Newsday Zimbabwe

THE ruling Zanu PF party has been plunged into internal tensions over cash and vehicle donations as the controversial Constitution Amendment No 3 Bill (CAB 3) faces a parliamentary vote this week.

The controversy comes amid allegations of vote-buying involving legislators from across the political divide, in what critics say is meant to secure the votes to pave way for President Emmerson Mnangagwa’s term extension by two years to 2030.

Lawmakers and councillors will also benefit from the term extension.

Tenderpreneur Wicknell Chivayo and special presidential investment adviser Paul Tungwarara have been central to high-profile donations, in what critics say is meant to drum up support for CAB 3.

Last week, Chivayo gifted two MPs — Remigious Matangira and Samantha Mureyani — vehicles and cash following their contribution to debate in the National Assembly in support of CAB 3.

In the past he pledged US$3,6 million to all 360 Members of Parliament but later withdrew the offer following criticism from Zanu PF deputy national secretary for youth affairs John Paradza.

Tungwarara, meanwhile, donated a car and US$200 000 to Zanu PF loyalist-turned-critic Rutendo Matinyarare in what observers say is an attempt to neutralise him.

Matinyarare has been a vocal critic of CAB 3 and Mnangagwa, claiming he was not paid for work done in defending Zimbabwe’s image and lobbying against sanctions.

The gesture drew criticism from Zanu PF loyalists, who accused the presidential adviser of rewarding Matinyarare for attacking Mnangagwa. Chivayo’s donations have also drawn criticism from former MP Temba Mliswa, who took to social media to condemn the gifting of vehicles to lawmakers during a critical constitutional debate.

Mliswa, who is the president of the Zimbabwe Village Heads Association, warned that such donations risk undermining democratic and constitutional processes.

He said Parliament must be protected from any form of influence during key national debates.

“Parliament is an institution of the people. It represents the people and provides oversight over the Executive,” Mliswa told NewsDay yesterday, adding that lawmakers should not be exposed to inducements while performing their constitutional duties.

He further argued that constitutional reform is institutional and party-driven, not individual-driven, urging restraint and adherence to due process.

Zanu PF chief whip Pupurai Togarepi said it was difficult to respond to social media claims but noted that any impropriety will be dealt with through proper channels.

“However, should there be anything untoward about the said donations, both the donor and the recipient will be guided on the correct procedure to be followed,” he said.

Prominent lawyer Thabani Mpofu also weighed in, suggesting the donations are politically motivated and linked to internal factional tensions.

Meanwhile, Zanu PF has announced plans for an “All Citizens Solidarity Rally” at Robert Mugabe Square in Harare, expected to draw thousands of supporters bussed from across the country.

The rally, themed People Have Spoken, is intended to demonstrate public backing for the constitutional amendments, with organisers modelling it on the million-man march held in support of late former President Robert Mugabe.

Zanu PF national political commissar Munyaradzi Machacha confirmed the event but said the exact date had not yet been finalised.

“Insofar as I know, the rally will be held at a later date which will be announced in due course,” he said.

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Source: Currency mismatch drains millions from Zimbabwe’s insurers -Newsday Zimbabwe

BULAWAYO, June 15 (NewsDay Live) — Zimbabwe’s short-term insurance sector is losing millions of dollars annually as a widening mismatch between ZiG-denominated claim settlements and US dollar-priced vehicle repairs erodes profitability, an industry expert has warned.

Presenting at the Insurance Institute of Zimbabwe (IIZ) Winter School in Bulawayo recently, insurance practitioner Lovemore Madavo said the industry’s biggest threat had shifted from inflation to the interplay between currency volatility, time and operational inefficiencies.

“Zimbabwe’s biggest insurance risk is no longer inflation; it is the interaction between currency, time and operational discipline,” Madavo said.

He said many insurers continue to settle claims in ZiG while repairers source spare parts in US dollars, often using parallel market exchange rates, creating substantial financial leakages.

According to Madavo, a motor claim initially valued at ZWG100,000 can ultimately cost an insurer ZWG130,000 after a 30% exchange-rate distortion, translating into a ZWG30,000 loss on a single claim.

“Currency mismatch is not theoretical; it is a direct, measurable profit drain on insurers and reinsurers,” he said.

Madavo estimated that an insurer processing 500 such claims annually could lose as much as ZWG15 million through exchange-rate-related leakages alone.

He said delays in claims processing were compounding the problem, with even modest inflation steadily eroding claim values over time.

“The insurer may not intend harm, but time and delay still create value erosion, customer frustration and relationship breakdown,” he said.

Madavo also flagged concerns over inflated repair quotations when insurance is involved, saying repair costs for insured vehicles can be up to 20% higher than those charged to uninsured motorists.

The developments underscore the operational challenges facing insurers in Zimbabwe’s multi-currency environment, raising questions over pricing models, claims management practices and the sustainability of underwriting profitability if currency risks remain unaddressed.

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Source: Zimra tightens screws on cross-border trade -Newsday Zimbabwe

THE Zimbabwe Revenue Authority (Zimra) has warned cross-border traders and bus operators against smuggling goods and making false customs declarations, saying such practices undermine efforts to curb the influx of illegal products, including drugs, into the country.

The warning was issued during a tax compliance awareness meeting for micro, small and medium enterprises (MSMEs) held at the Small City Hall in Bulawayo recently. Authorities stressed the need for stricter adherence to customs regulations amid rising concern over smuggling and illicit trade through border posts and transport corridors.

The meeting, organised in collaboration with Zimra, brought together MSMEs, traders, transport operators and other business stakeholders to discuss tax compliance, business formalisation and regulatory requirements.

Speaking at the meeting, Zimra Bulawayo customs revenue officer Thembinkosi Ndlovu called on traders and transporters to comply with customs regulations and ensure that goods are declared under the names of their rightful owners.

He said customs officials frequently encounter goods being transported under names that do not belong to the actual owners, making it difficult to maintain accountability and increasing the risk of illegal activities.

“As traders and transporters, we want to stress that we normally come across products that are not in the bearers’ names,” Ndlovu said.

“The declarations are not in their names. We are asking that when you are declaring at customs, do so in the correct names.”

He also urged transport operators, particularly cross-border bus operators, to avoid transporting dangerous and prohibited goods.

Ndlovu said Zimbabwe continued to grapple with drug and substance abuse, with many illicit substances entering the country from across its borders.

“One of our objectives is to protect society. Recently, the government highlighted drug and substance abuse as a major challenge facing the country,” he said. “As Zimra, questions are often raised about how these drugs find their way into the country.”

Zimra recently intercepted approximately 365 kilogrammes of cannabis, a development that has reinforced the need for stricter enforcement measures at border posts and along transport routes.

Cross-border transport operators raised concern over what they described as repeated searches and inconsistencies in enforcement processes.

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