ZIMBABWE will keep fiscal and monetary policies tight to entrench single-digit inflation, Finance, Economic Development and Investment Promotion minister Mthuli Ncube has said, signalling no early relief for business despite inflation easing to 4,4%.
Addressing delegates at the International Business Conference 2026 in Bulawayo yesterday, Ncube said authorities were determined to preserve price stability after years of volatility, warning that policy discipline will remain in place “for a little longer”.
“Once you test single digit inflation, you want to keep it,” Ncube said.
“No one loves double digit, triple digit inflation… So expect our tight policies to continue.”
Zimbabwe has endured more than a decade of price instability, including bouts of hyperinflation that wiped out savings and undermined business confidence.
In response, authorities have in recent years leaned heavily on tight liquidity management, exchange rate control and fiscal restraint to tame inflation.
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The current 4,4% rate marks a sharp turnaround from previous spikes and Treasury now appears focused on consolidating the gains rather than shifting prematurely to stimulus.
Ncube said Treasury and central bank models show inflation will remain in single digits this year, even under external shocks such as a rise in diesel prices to US$2,50 per litre.
“That is pleasing, but that doesn’t mean we should slacken too quickly on monetary policy,” he said.
“We should still maintain tightness and ensure proper coordination between monetary and fiscal policies.”
His remarks come as industry has been pushing for low interest rates and loose conditions to support expansion.
But authorities remain wary, mindful of past episodes where early easing triggered renewed instability.
Ncube, however, sought to reassure businesses on long-standing concerns over government payment delays, saying improved pricing and reduced market distortions will allow Treasury to pay suppliers efficiently.
“Those of you supplying the government should expect better performance from the fiscal authorities.”
He also pointed to progress under a cost-of-doing-business reform drive covering 12 sectors, including agriculture, tourism, transport, energy, construction and finance.
The programme targets licence rationalisation, removal of overlapping procedures and lower compliance costs.
While the reforms have been completed at policy level, Ncube said focus was on gazetting statutory instruments to give them legal force.
“It just takes time because there are a lot of changes,” he said.
“Eventually, all the various statutory instruments will be in place.”
The reforms are part of a broader push to improve competitiveness and attract investment, as Zimbabwe positions itself against increasingly liberalised regional markets.
The government is rolling out targeted incentives to support production.
These include lower electricity tariffs for firms operating round-the-clock shifts under a proposed 24-hour economy and wider access to the Youth Employment Tax Rebate.
Authorities are further backing emerging sectors such as business process outsourcing, with plans to designate buildings — including the China Centre in Harare — as special economic zones.
On the monetary front, Ncube said authorities had capped transaction costs, maintaining cash withdrawal charges at 2% and limiting point-of-sale fees to 1,5%, while expanding a targeted finance facility for the productive sector.
The measures are meant to cushion firms operating under high interest rates — a direct consequence of the tight monetary stance.
Ncube highlighted wider structural priorities, including mineral beneficiation, infrastructure development and value chain support in tourism and manufacturing, with a stronger role envisaged for private sector investment in rail and roads.
The insistence on policy discipline comes as Zimbabwe presses ahead with efforts to stabilise its currency and reduce dollar dependence — a strategy that is hinged on keeping inflation low and predictable.