PASSENGER vehicle imports into Zimbabwe have more than doubled over the past three years, highlighting the growing influence of a cash-rich informal economy that increasingly directs US dollar earnings into assets rather than the formal banking system.
Data from the Zimbabwe National Statistics Agency (ZimStat) show passenger motor vehicle imports rising from about US$2,5 million to US$3 million per month in early 2023 to US$6 million by March 2026, according to brokerage IH Securities.
The surge points to the scale of liquidity circulating outside formal financial channels, as informal traders, artisanal miners, cross-border merchants and diaspora recipients increasingly deploy cash into tangible assets. The trend comes as authorities intensify efforts to monitor cash-intensive sectors amid concerns over money laundering and financial transparency.
Zimbabwe had about 1,75 million registered vehicles as of the end of 2025, according to ZimStat, underlining the significance of the motor vehicle market as a store of wealth for households and businesses.
“Higher up the consumer spend pyramid, durables tell a different story. ZimStat trade data show passenger motor car imports rising from roughly US$2,5 million to US$3 million per month in early 2023 to US$6 million by March 2026, more than doubling over the period,” IH Securities said in its latest 2026 Consumer Sector Report.
“The trajectory is, in our view, a direct read-out of a booming cash economy in the informal and primary sectors, where tuckshop traders, cross-border merchants, artisanal miners and smallholder agriculture have generated sustained US dollar cash surpluses that bypass the formal banking system and surface visibly in vehicle purchases.”
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The brokerage said the cash economy was being reinforced by diaspora remittances of nearly US$2,5 billion annually, with a growing share of those inflows being channelled into asset purchases.
“The combination explains why vehicle import volumes have remained resilient even as formal banking-sector credit data understate consumer durable demand,” IH Securities said.
The report said the composition of imports was also beginning to shift following a reduction in customs duty on fully battery-electric vehicles to 25% from 40%, effective January 1, 2025.
Asian manufacturers, including BYD, Chery and Omoda, have expanded their local presence through dealership and after-sales networks, challenging the dominance of Japanese used-vehicle imports.
However, analysts said limited charging infrastructure, power supply constraints, and high upfront costs remain barriers to widespread electric vehicle adoption.
IH Securities noted that informal activity accounts for 58% of total employment in Zimbabwe, compared with 36% in the formal sector and 6% in household work.
“The dominance of informal earnings translates into income volatility, limited credit access and a consumer base that transacts predominantly in cash and US dollars, bypassing the formal banking channel,” the brokerage said.
The growth of the cash economy has prompted increased scrutiny from the Financial Intelligence Unit (FIU), which last week identified lawyers, estate agents and vehicle dealers among sectors frequently handling large cash transactions.
FIU director-general Oliver Chiperesa said the agency had intensified monitoring and supervisory measures in sectors where cash-intensive transactions are prevalent.
“There is increased supervision and monitoring of estate agencies, car dealers, accountants and others to ensure they identify and report suspicious transactions,” he told NewsDay Business.
Chiperesa said authorities expected the planned transition to a mono-currency regime to reduce reliance on cash transactions and improve traceability within the financial system.
“All high-value transactions will be occurring through banking channels, thereby reducing the risk of money laundering,” he said.