Story by Owen Mandovha
BUSINESS leaders have expressed confidence in the Reserve Bank of Zimbabwe’s monetary policy framework, citing easing inflation and exchange rate stability as key drivers of an improving macroeconomic environment.
The sentiments emerged during a Mid-Term Policy Review hosted by Africa Economic Development Strategies (AEDS) in Harare on Thursday, where the Reserve Bank of Zimbabwe engaged industry leaders and other stakeholders on the country’s economic outlook and recent policy measures.
Participants heard that improved inflation management and exchange rate stability have strengthened market confidence and created conditions for sustained economic growth.
Reserve Bank of Zimbabwe Deputy Governor, Dr Innocent Matshe said the central bank remains focused on preserving macroeconomic stability.
“We have battled the dangers of inflation, which is now at below 5 percent and the outlook is that we will sustain that trajectory going forward. Our outlook is that we will maintain this by the end of the year, and we also forecast to have a two-month import cover by the end of the year. The economy is on a growth trajectory as we speak, and the monetary policy framework remains on track to achieve the economic objectives.”
While welcoming the prevailing stability, business leaders called for lower borrowing costs to stimulate production and investment.
Economist Mr Brains Muchemwa said:
“The RBZ has done enough in containing inflation so far and we are seeing a commitment to sustain this roadmap which gives us confidence to operate. However, there is need to cut interest rates to give industry some relief.”
Industrialist Tafadzwa Musarara said the stability of the ZiG had boosted confidence across the market.
“ZiG Stability has injected a lot of confidence in the market and we are glad that there is general acceptance of the local currency in the market.”
Industrialist Tapiwa Masenda underscored the need to strengthen industrialisation and value addition to sustain economic growth.
“Industrialisation is key to attain the set economic targets and Government should intensify a policy framework that sustains that roadmap, including in the tobacco sector which requires value addition to sustain the viability.”
Africa Economic Development Strategies Executive Director, Professor Gift Mugano said the policy dialogue had provided an important platform for stakeholders to exchange ideas on safeguarding macroeconomic stability.
“We are encouraged by the turnout so far witnessed in the market. The policy dialogue was key in driving consensus on what needs to be done to create a robust economy.”
The meeting heard that Zimbabwe’s economy remains on course to achieve the more than five percent growth target projected by Treasury for the year, in line with forecasts by the International Monetary Fund.
