Published: 19 hours ago

Zimbabwe will continue pursuing strict fiscal and monetary policies to preserve single-digit inflation, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube has said, signalling that businesses should not expect near-term policy easing.

Speaking at the International Business Conference 2026 in Bulawayo, Ncube said authorities are focused on consolidating recent gains in price stability, with inflation currently recorded at 4.4%.

"Once you test single digit inflation, you want to keep it," he said. "No one loves double digit, triple digit inflation… So expect our tight policies to continue."

Zimbabwe has endured prolonged periods of inflation instability over the past decade, including episodes of hyperinflation that eroded savings and weakened business confidence.

In response, authorities have implemented tight liquidity controls, fiscal restraint, and exchange rate management to stabilise the economy.

Ncube said government models suggest inflation will remain in single digits throughout the year, even in the face of external pressures such as rising fuel prices.

"That is pleasing, but that doesn't mean we should slacken too quickly on monetary policy," he said.

While maintaining tight policy, government says it is also working on improving the business environment. Ncube noted that reforms under a cost-of-doing-business programme covering 12 sectors-including agriculture, tourism, transport and energy-have been completed at policy level and are awaiting legal implementation through statutory instruments.

The programme aims to reduce licensing requirements, eliminate overlapping regulations and lower compliance costs.

He also pointed to incentives such as reduced electricity tariffs for firms operating 24-hour production cycles and expanded access to youth employment tax rebates.

The government is also rolling out targeted financing support and promoting emerging industries such as business process outsourcing, including the designation of special economic zones like the China Centre in Harare.

On monetary policy, Ncube said transaction costs remain capped, with cash withdrawal fees limited to 2% and point-of-sale charges capped at 1.5%.

Ncube said Treasury will maintain disciplined spending while improving payment efficiency to suppliers.

"Those of you supplying the government should expect better performance from the fiscal authorities," he said.

The minister added that broader structural reforms-including mineral beneficiation, infrastructure investment and private sector participation in transport networks-remain key to long-term competitiveness.

The government's stance reflects a continued preference for macroeconomic stability over short-term stimulus, as authorities aim to reduce dollarisation and build confidence in local currency systems through sustained low inflation.
- newsday

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