…Says Inflation now under control
By Dumisani Ndlovu
GWERU – Zimbabwe’s Finance and Economic Development Minister, Professor Mthuli Ncube, recently announced that inflation is now under control, attributing the economic stability to the introduction of the Zimbabwe Gold (ZiG) currency. Speaking on the sidelines of the recent Midlands Investment Conference, he expressed satisfaction with the positive developments since the ZiG’s launch in April 2024.
“Inflation has always been influenced by the gap between the official exchange rate and the parallel market rate. Now that the currency has stabilised, we are seeing inflation coming under control,” Minister Ncube told journalists. His remarks offer a glimmer of hope for local residents who have endured years of economic hardship and currency volatility.
The ZiG, Zimbabwe’s latest attempt to tame inflation and stabilise its economy, appears to be yielding positive results. According to Professor Ncube, the inflation rate for March stood at zero percent, a significant improvement from the 0.5 percent recorded in February. “It was higher before, but the downward trend is clearly visible,” he emphasized, suggesting a tangible shift in the economic landscape.
This newfound stability is not just reflected in inflation figures. Minister Ncube revealed that feedback from various companies indicates a growing confidence in the business environment, enabling them to engage in long-term planning. “They have committed to long-term investments because they are confident that the environment is now stable,” he stated, highlighting the potential for increased economic activity and job creation within the region.
Economic analysts suggest that the ZiG’s positive impact stems from several factors. Professor Ncube himself pointed to tight monetary policies, positive real interest rates, and disciplined fiscal management as key drivers of the improved outlook. He stressed the importance of coordinated monetary and fiscal policy, warning against the dangers of loose fiscal policy leading to the monetisation of government overspending. “These two, monetary and fiscal policy, must work hand in hand. If fiscal policy becomes loose, we risk monetising government overspending. Fortunately, we are not experiencing that,” he clarified.
The success of the ZiG, however, is not without its challenges. Some economists caution that maintaining this stability will require continued vigilance and prudent economic management. The long-term impact of the new currency is still unfolding, and its success will depend on sustained confidence from both businesses and the public.
Professor Ncube also highlighted the upcoming Independence Day celebrations in Nembudziya as an opportunity to showcase the investment potential of the Midlands Province. He explained that the region aims to leverage the national celebrations to attract investors and tourists, fostering sustainable economic growth. “We want visitors who come for the Uhuru Day to find reasons to return. These reasons should be anchored in economic, investment, or tourism opportunities,” he said.
The Midlands Investment Conference, strategically scheduled to coincide with the Independence Day celebrations, aims to generate greater interest and attendance. By aligning the conference with the national event, the government hopes to maximize exposure and encourage potential investors to explore the opportunities available in the Midlands Province.
While the initial signs are encouraging, the long-term success of the ZiG and its impact on the Zimbabwean economy remain to be seen. The government’s commitment to sound economic policies and its ability to maintain public confidence will be crucial in ensuring a stable and prosperous future for the nation. For now, the news of controlled inflation and increased business confidence offers a welcome respite for local residents, fostering hope for a brighter economic future.
Zimbabwe Finance Minister, Mthuli Cubes
