HARARE – Zimbabwe’s Government says it remains confident of sustaining single-digit inflation despite recent disruptions in fuel distribution linked to the ongoing Middle East conflict. Annual inflation currently stands at 3.8 percent, and officials attribute stability to proactive interventions and alternative supply measures.
Speaking at the Zimbabwe College in Harare during a presentation to the Joint Command and Staff Course Number 39, Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe David Mnangagwa said the Government is closely monitoring fuel prices and other economic indicators.
“As it is, we have a good level of confidence that we will still be able to maintain single-digit inflation through a cocktail of interventions from Government, as well as making sure that we ramp up other alternatives in supply chains,” he said.
Fuel prices have been a particular focus. The Zimbabwe Energy Regulatory Authority (ZERA) announced increases effective March 4, 2026, with petrol rising to US$1.71 per litre and diesel to US$1.77 per litre. Without government intervention, prices would have reached US$1.81 for petrol and US$1.90 for diesel. Minister Soda, acting as Energy Minister, confirmed that Zimbabwe holds fuel stocks sufficient to last two to three months, with additional shipments en route via regional supply routes.
Deputy Minister Mnangagwa explained that fuel has a “multiplier effect” on the economy, influencing transport, production costs, and inflation. He added that economists are continuously assessing international forecasts and price movements to guide policy responses.
On mineral exports, Mnangagwa highlighted recent bans on raw minerals, including lithium concentrate, as part of a strategy to promote local beneficiation and industrialisation. He said Zimbabwe had previously been losing value through unprocessed exports and aims to increase the manufacturing sector’s contribution to GDP to 25 percent under National Development Strategy 2 (NDS2).
“The ban on raw minerals, particularly lithium, sent the global lithium price into a frenzy. This was a ban just from Zimbabwe and shows how much of a contributor the country was to the lithium market. We need to make sure that these strategic minerals benefit the grander populace,” he said.
Mnangagwa also noted that irregularities in compliance with the mineral export policy prompted the Government to review and tighten regulations, ensuring that local beneficiation targets are met.
With strategic interventions in fuel supply and mineral processing, Zimbabwe aims to safeguard the economy against external shocks, maintain stable inflation, and maximise benefits from its natural resources.
Source – The Herald
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