Zim News Blog -NEWS NETWORK

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Tapiwanashe Mangwiro

Zimpapers Business Hub

ZIMBABWE’S inflation trajectory in 2025 marked a decisive shift from the volatility of recent years, reflecting the cumulative gains of fiscal restraint, tight monetary policy and more proactive money supply management.

After a period of elevated price pressures in early 2025, inflation indicators steadily improved, reinforcing confidence in the authorities’ stabilisation framework and laying the groundwork for further disinflation in 2026.

Monthly inflation in ZiG terms remained largely contained throughout most of the year, between February and October 2025, month-on-month ZiG inflation averaged about 0,4 percent, signalling relative price stability across the economy.

This consistency has been widely interpreted as evidence that inflation expectations and fears of rapid exchange rate depreciation have been firmly subdued.

Economist Tinevimbo Shava said the low and stable monthly inflation readings were critical in rebuilding confidence.

“What matters most for households and businesses is predictability. When month-on-month inflation stays close to zero, it changes behaviour, from pricing decisions to wage negotiations,” Mr Shava said.

“That is what we have increasingly seen in 2025.”

On an annual basis, the improvement has been even more striking. ZiG inflation, which stood at 85,7 percent in April 2025, climbed to a peak of 95,8 percent in July before decelerating sharply to 32,7 percent by October.

Authorities project that annual inflation will fall to around 20 percent by December 2025.

This rapid disinflation has been underpinned by a combination of factors, chief among them the sustained tight monetary policy stance adopted since September 2024. Liquidity control measures, complemented by exchange rate management and currency reforms, have reduced excess money supply growth and dampened speculative activity.

Mr Shava noted that the policy consistency itself has been as important as the measures.

“The difference this time is follow-through. The market has seen that tight policy is not temporary, and that credibility has helped to compress inflation faster than many expected,” he said.

Improved domestic food supply has also played a significant role. A favourable 2024/25 agricultural season boosted output, easing food price pressures that traditionally account for a large share of Zimbabwe’s inflation basket. This supply-side relief coincided with better foreign currency availability, further reinforcing price stability.

The Reserve Bank of Zimbabwe’s liquidity management tools have been central to the disinflation process. The continued implementation of tight monetary policy was reinforced during the Mid-Term Monetary

Policy Review, notably through the deployment of Non-Negotiable Certificates of Deposit (NNCDs) to mop up excess liquidity.

Economic analyst Namatai Maeresera said these instruments helped close loopholes that previously fuelled inflation.

“Liquidity leakages have historically undermined policy efforts. Through tightening control over money supply growth, the central bank has reduced arbitrage opportunities that fed both inflation and exchange rate instability,” Mr Maeresera said.

He added that the impact of these measures was visible not only in inflation data but also in the behaviour of the exchange rate.

“Once the exchange rate stabilises, inflation follows. The two are inseparable in Zimbabwe’s context,” he said.

Indeed, the exchange rate has remained relatively stable on the Willing Buyer Willing Seller market since September 2024. Supported by steady foreign currency inflows and tight liquidity conditions, the interbank exchange rate averaged ZiG26,69 per US dollar between January and September 2025, closing September at ZiG26.64.

As a result, the parallel market premium narrowed significantly, falling from above 36 percent in January 2025 to about 20 percent by the end of September.

The Reserve Bank’s accumulation of foreign currency reserves enabled targeted interventions to smooth supply-demand mismatches without undermining broader market discipline.

Zimbabwe’s external sector performance in 2025 has provided additional support to price and exchange rate stability. Between January and September, total foreign currency receipts rose to US$11,9 billion, up from US$9,6 billion during the same period in 2024, representing a 24 percent increase.

Export proceeds led the growth, rising nearly 29 percent to US$7,04 billion, driven largely by tobacco, gold and platinum.

Diaspora remittances also increased, while private sector loan inflows surged by more than 55 percent, reflecting improved confidence and access to external financing.

Banker Raymond Madziva said the scale and diversity of inflows had helped to stabilise the macroeconomic environment.

“When foreign currency supply improves across exports, remittances and financing, it reduces pressure on the exchange rate and dampens imported inflation,” Mr Madziva said. “That virtuous cycle has been evident in 2025.”

However, he cautioned that some inflows, such as foreign direct investment, declined during the period, highlighting the need to deepen reforms that attract long-term capital.

“Stability is a necessary condition, but not sufficient on its own. Structural reforms will determine whether these gains are sustained,” Mr Madziva added.

Inflation trends in US dollar terms have also remained subdued. Month-on-month US dollar inflation averaged just 0,1 percent between February and October 2025, while annual US dollar inflation averaged 14,2 percent.

This reflects the combined effects of exchange rate stability and moderated domestic price pressures.

According to Mr Maeresera, the deceleration in both ZiG and US dollar inflation suggests broad-based stability.

“It shows that inflation is not merely being suppressed in one currency while re-emerging in another. That balance is critical for confidence in pricing and contracts,” he said.

With inflation decelerating steadily in 2025, attention is turning to the outlook for 2026. Authorities project that ZiG annual inflation will decline further, reaching single-digit levels, with an average rate of about 12,1 percent for the year.

This outlook is anchored on sustained fiscal discipline, continued tight monetary policy and stronger coordination between fiscal and monetary authorities.

Mr Shava said the projections were achievable but not guaranteed.

“The direction is encouraging, but policy discipline must be maintained. Any slippage on fiscal spending or liquidity control could quickly reverse the gains,” he said.

Mr Madziva echoed this view, adding that external shocks remain a risk.

“Commodity prices, climate-related shocks and global financial conditions will matter. The key will be how policy responds to these pressures without sacrificing stability,” he said.

Overall, Zimbabwe’s 2025 inflation performance represents a turning point. Sustained deceleration in prices, improved exchange rate stability and stronger external inflows have created a more predictable macroeconomic environment.

If current policies are maintained, 2026 could mark the transition from stabilisation to sustained low inflation and broader economic recovery.

The post Zim records remarkable inflation stability in 2025 appeared first on herald.

The post Zim records remarkable inflation stability in 2025 appeared first on Zimbabwe Situation.

Tapiwanashe Mangwiro

Zimpapers Business Hub

ZIMBABWE’S inflation trajectory in 2025 marked a decisive shift from the volatility of recent years, reflecting the cumulative gains of fiscal restraint, tight monetary policy and more proactive money supply management.

After a period of elevated price pressures in early 2025, inflation indicators steadily improved, reinforcing confidence in the authorities’ stabilisation framework and laying the groundwork for further disinflation in 2026.

Monthly inflation in ZiG terms remained largely contained throughout most of the year, between February and October 2025, month-on-month ZiG inflation averaged about 0,4 percent, signalling relative price stability across the economy.

This consistency has been widely interpreted as evidence that inflation expectations and fears of rapid exchange rate depreciation have been firmly subdued.

Economist Tinevimbo Shava said the low and stable monthly inflation readings were critical in rebuilding confidence.

“What matters most for households and businesses is predictability. When month-on-month inflation stays close to zero, it changes behaviour, from pricing decisions to wage negotiations,” Mr Shava said.

“That is what we have increasingly seen in 2025.”

On an annual basis, the improvement has been even more striking. ZiG inflation, which stood at 85,7 percent in April 2025, climbed to a peak of 95,8 percent in July before decelerating sharply to 32,7 percent by October.

Authorities project that annual inflation will fall to around 20 percent by December 2025.

This rapid disinflation has been underpinned by a combination of factors, chief among them the sustained tight monetary policy stance adopted since September 2024. Liquidity control measures, complemented by exchange rate management and currency reforms, have reduced excess money supply growth and dampened speculative activity.

Mr Shava noted that the policy consistency itself has been as important as the measures.

“The difference this time is follow-through. The market has seen that tight policy is not temporary, and that credibility has helped to compress inflation faster than many expected,” he said.

Improved domestic food supply has also played a significant role. A favourable 2024/25 agricultural season boosted output, easing food price pressures that traditionally account for a large share of Zimbabwe’s inflation basket. This supply-side relief coincided with better foreign currency availability, further reinforcing price stability.

The Reserve Bank of Zimbabwe’s liquidity management tools have been central to the disinflation process. The continued implementation of tight monetary policy was reinforced during the Mid-Term Monetary

Policy Review, notably through the deployment of Non-Negotiable Certificates of Deposit (NNCDs) to mop up excess liquidity.

Economic analyst Namatai Maeresera said these instruments helped close loopholes that previously fuelled inflation.

“Liquidity leakages have historically undermined policy efforts. Through tightening control over money supply growth, the central bank has reduced arbitrage opportunities that fed both inflation and exchange rate instability,” Mr Maeresera said.

He added that the impact of these measures was visible not only in inflation data but also in the behaviour of the exchange rate.

“Once the exchange rate stabilises, inflation follows. The two are inseparable in Zimbabwe’s context,” he said.

Indeed, the exchange rate has remained relatively stable on the Willing Buyer Willing Seller market since September 2024. Supported by steady foreign currency inflows and tight liquidity conditions, the interbank exchange rate averaged ZiG26,69 per US dollar between January and September 2025, closing September at ZiG26.64.

As a result, the parallel market premium narrowed significantly, falling from above 36 percent in January 2025 to about 20 percent by the end of September.

The Reserve Bank’s accumulation of foreign currency reserves enabled targeted interventions to smooth supply-demand mismatches without undermining broader market discipline.

Zimbabwe’s external sector performance in 2025 has provided additional support to price and exchange rate stability. Between January and September, total foreign currency receipts rose to US$11,9 billion, up from US$9,6 billion during the same period in 2024, representing a 24 percent increase.

Export proceeds led the growth, rising nearly 29 percent to US$7,04 billion, driven largely by tobacco, gold and platinum.

Diaspora remittances also increased, while private sector loan inflows surged by more than 55 percent, reflecting improved confidence and access to external financing.

Banker Raymond Madziva said the scale and diversity of inflows had helped to stabilise the macroeconomic environment.

“When foreign currency supply improves across exports, remittances and financing, it reduces pressure on the exchange rate and dampens imported inflation,” Mr Madziva said. “That virtuous cycle has been evident in 2025.”

However, he cautioned that some inflows, such as foreign direct investment, declined during the period, highlighting the need to deepen reforms that attract long-term capital.

“Stability is a necessary condition, but not sufficient on its own. Structural reforms will determine whether these gains are sustained,” Mr Madziva added.

Inflation trends in US dollar terms have also remained subdued. Month-on-month US dollar inflation averaged just 0,1 percent between February and October 2025, while annual US dollar inflation averaged 14,2 percent.

This reflects the combined effects of exchange rate stability and moderated domestic price pressures.

According to Mr Maeresera, the deceleration in both ZiG and US dollar inflation suggests broad-based stability.

“It shows that inflation is not merely being suppressed in one currency while re-emerging in another. That balance is critical for confidence in pricing and contracts,” he said.

With inflation decelerating steadily in 2025, attention is turning to the outlook for 2026. Authorities project that ZiG annual inflation will decline further, reaching single-digit levels, with an average rate of about 12,1 percent for the year.

This outlook is anchored on sustained fiscal discipline, continued tight monetary policy and stronger coordination between fiscal and monetary authorities.

Mr Shava said the projections were achievable but not guaranteed.

“The direction is encouraging, but policy discipline must be maintained. Any slippage on fiscal spending or liquidity control could quickly reverse the gains,” he said.

Mr Madziva echoed this view, adding that external shocks remain a risk.

“Commodity prices, climate-related shocks and global financial conditions will matter. The key will be how policy responds to these pressures without sacrificing stability,” he said.

Overall, Zimbabwe’s 2025 inflation performance represents a turning point. Sustained deceleration in prices, improved exchange rate stability and stronger external inflows have created a more predictable macroeconomic environment.

If current policies are maintained, 2026 could mark the transition from stabilisation to sustained low inflation and broader economic recovery.

The post Zim records remarkable inflation stability in 2025 appeared first on herald.

The post Zim records remarkable inflation stability in 2025 appeared first on Zimbabwe Situation.

Debra Matabvu

Senior Reporter

TREASURY has allocated ZiG 400 million for the completion of the Gwayi-Shangani and Kunzvi dams next year as the Government accelerates work on the flagship infrastructure projects to end water shortages in Bulawayo and Harare.

This year, the Government disbursed US$101 million for the construction of the two dams following a directive by President Mnangagwa for Treasury to release US$5 million monthly to fast-track progress on the two strategic projects.

For Kunzvi Dam, the funds will be used for excavation of the main dam, construction of houses for relocated households, and embankment placement on the main dam, while work at the Gwayi-Shangani Dam this year will include installation of formwork on the spillway of the main dam wall, concrete pouring for the mini-hydro power plant, and placement of concrete on the main dam.

Currently Gwayi- Shangani and Kunzvi dams are at 72 percent and 65 percent respectively.

According to the 2026 Zimbabwe Infrastructure Investment Programme, Government is set to prioritise the two dams are among the key deliverables under the Second Republic’s infrastructure development agenda.

“In 2025, a total of US$73 million was availed towards the construction of Kunzvi dam project which is now at 65 percent level of completion,” the document reads in part.

“The 2026 budget will prioritise the completion of the remaining works at Kunzvi dam project with an allocation of ZiG130,6 million being set aside for this purpose.”

In addition, the document said: “With regards to Gwayi-Shangani dam which is now at 72,4 percent US$25,3 million was availed during the year 2025.

“Completion of the Gwayi Shangani dam is projected for 2026, supported by a funding allocation of ZiG273 million.

“The allocation should enable the contractor to cover the remaining works covering the following: River sand screening which is still in progress on site, the remaining water supply intake excavations where a total of 17,305 cubic metres have so far been excavated, remaining fabrication of dam outlet pipe where a total of 101m of the outlet pipe has been installed on the dam.

“Installation of formwork on the spillway on the main dam wall, concrete pouring on the mini-hydro power plant, placing of concrete on the main dam, installation of reinforcement steel bars and formwork on the Mini-hydro and consolidation grouting at right bank abutment.”

Both dams are regarded as critical national projects expected to transform water security in Zimbabwe’s two largest cities once completed.

In the 2025 National Budget, Government allocated ZiG2 billion for dam construction countrywide, with Gwayi-Shangani and Kunzvi receiving the largest share.

The Gwayi-Shangani-Bulawayo Water Project includes construction of Lake Gwayi-Shangani, a 10MW mini-hydropower station and a 252-kilometre pipeline with six booster stations linking the dam to Cowdray Park in Bulawayo.

The project also incorporates a 220 megalitre-per-day water treatment plant and provision for 10 000 hectares of irrigation schemes along the pipeline route to benefit surrounding communities.

Similarly, Kunzvi Dam will not only augment Harare’s water supply but also support irrigation on at least 500 hectares of land and serve surrounding growth points and business centres such as Juru, Cross Musami and Majuru in Goromonzi District.

The two projects carry historical significance.

The Gwayi-Shangani Dam and pipeline form part of the long-awaited National Matabeleland Zambezi Water Project, first proposed in 1912, while the Kunzvi Dam was initially scheduled for construction in 1996.

Both projects finally took off after 2018, marking a major milestone in Zimbabwe’s push to deliver long-delayed infrastructure that supports economic growth, rural development and climate resilience.

The post ZiG400m kitty for Kunzvi, Gwayi-Shangani dams completion appeared first on herald.

The post ZiG400m kitty for Kunzvi, Gwayi-Shangani dams completion appeared first on Zimbabwe Situation.

Freeman Razemba

Senior Reporter

In a bid to quickly attend to road traffic accident victims and reduce carnage this festive season, Government and its partners have deployed ambulances at 27 major hotspots countrywide with air ambulances on standby in Harare and Bulawayo.

This comes after more than 400 ambulances were recently deployed nationwide to respond to road traffic accidents during the festive season.

These were the standard ambulances at hospitals and districts that are deployed for any medical emergency.

Of the deployed ambulances, 27 are state-of-the-art units stationed at identified accident hotspots along major highways.

The remainder are on standby across the country to attend to any incidents including traffic accidents, while a dedicated 24/7 toll-free emergency number, 591, has been activated.

The initiative was unveiled recently during the launch of the Festive Season Road Safety Campaign at Gosha Primary School near Juru Business Centre.

Government is also working towards establishment and implementation of a historic post-crash management system after on June 3, 2025, Cabinet approved the Memorandum of Principles for the Road Accident Fund Bill.

The Bill seeks to establish a stand-alone Road Accident Fund, which is an integral pillar of road traffic safety.

The post-crash management framework will ensure that accident victims receive medical care within the first 60 minutes (golden hour) of a road traffic accident, hence increasing their chances to survive.

The fund will provide immediate recourse to medical and funeral expenses and enhance the capacity of emergency services providers and medical institutions to effectively respond to road accidents to save lives.

The Fund will alleviate the financial burden on victims and their families, promoting recovery and stability in their lives.  In the main, it will be funded from 35 percent of the Third Party Motor Vehicle Insurance, augmented by other funds appropriated by the Treasury.

In a statement, the Ministry of Transport and Infrastructural Development confirmed that they had since identified the hotspots areas and deployed some of the ambulances.

“Guided by the policy direction of His Excellency, the President, Cde ED Mnangagwa, the Ministry of Transport and Infrastructural Development is pleased to announce that through the Traffic Safety Council of Zimbabwe, we have identified the major accident hot spots in Zimbabwe and deployed ambulances closer to those points.

“We want to thank partners who have come through key amongst which is ICZ and we advise that the contact numbers are 591 and 911 for Discovery Ambulances,” said the ministry.

Transport and Infrastructural Development Minister Felix Mhona said Government had approved a short-term framework to place ambulances equipped with medical supplies and personnel at all tollgates and accident-prone areas during this high-risk period.

“In that vein, the Traffic Safety Council of Zimbabwe has hired ambulances for that purpose,” he said.

The council would work closely with the Civil Protection Unit, the Ministry of Health and Child Care, and the Zimbabwe Republic Police to ensure the swift evacuation of casualties to medical facilities.

Discover Ambulances have deployed ambulances in Chiredzi, Beitbrige, 22 Miles, Murehwa, Jerera, Mudzi, Makuti, Hwedza, Jerera, Makuti, Mvuma and Juliasdale.Discovery Ambulances CEO David Mudowenyu said he was happy to partner the Government in reducing road carnage during and after the festive season.

“As the CEO and Founder of Discovery Ambulance Services, I am proud to reaffirm our unwavering commitment to the people of Zimbabwe. This strengthened partnership with the Government of Zimbabwe and the Traffic Safety Council of Zimbabwe underscores our shared mission: to save lives, enhance emergency response, and keep communities safe during the festive season and beyond.’’

TSCZ managing director, Mr Munesu Munodawafa, said ambulances had been dispatched to areas as far as Beitbridge.

“We have ambulances in Hwedza, 22 Miles, Beitbridge, Chiredzi, among others. What is interesting to note is that hotspots that have a high frequency of accidents, like Makuti in Karoi, Mashonaland West and Connemara in Midlands, have a dedicated ambulance so that if anything happens, emergency medical teams respond fast.”

Meanwhile, Air ambulances are also on standby this festive season.

The post 27 ambulances on standby at accident hotspots appeared first on herald.

The post 27 ambulances on standby at accident hotspots appeared first on Zimbabwe Situation.