Story by Stanley James, Business Reporter
ZIMBABWE has emerged among the most stable economies in the Common Market for Eastern and Southern Africa (COMESA) after recording a decline in domestic currency inflation to 3.8 percent in February, down from 4.1 percent in January.
Latest data released on Thursday by the Zimbabwe National Statistics Agency shows the yearly ZiG inflation rate easing further, reinforcing signs of price stability under current fiscal and monetary policies.
United States Dollar inflation also softened to 0.9 percent this month from 1.0 percent in January, signalling broader stabilisation across pricing indices.
The latest figures position Zimbabwe among economies with comparatively stable inflation within the 21-member COMESA trading bloc, a regional market of over 600 million people with a combined Gross Domestic Product exceeding US$1.1 trillion.
Speaking in Livingstone, Zambia, on the sidelines of a COMESA Competition and Consumer Commission workshop, Competition and Tariff Commission Secretary Mr Jonathan Dube said the downward inflation trend reflects deliberate policy direction.
“The drop in the rate of inflation is really a vital indicator that authorities are seeing it necessary to forge ahead with policies that position the nation as an important hub for doing business on the regional front so riding on such gains this presents an important opportunity for Zimbabwe to focus on growing exports within the region,” said Mr Dube.
Economic analysts note that lower inflation enhances predictability for industry and investors, while strengthening Zimbabwe’s competitiveness within the regional bloc.
Consumer Protection Commission Chief Executive Officer Professor Zororo Murandu said the moderation in inflation carries tangible benefits for consumers and business planning.
“The consumer is benefitting in terms of more savings and increased expenditure and this will enable the nation’s industry to reap more benefits as they enjoy growth emanating from the stable economic climate apart from that this also enable industry and commerce to plan for the future remember regional investors want certainty on economic policies as a key enabler for them to set up their businesses,” said Professor Murandu.
The sustained decline in inflation is expected to strengthen Zimbabwe’s trade prospects within COMESA, providing a more predictable operating environment for exporters and investors seeking regional market access.
