ZIMBABWE’S economy appears to be entering a period of relative calm after years of volatility, with the government projecting a significant decline in inflation.
The outlook reflects growing confidence in the ZiG (Zimbabwe Gold) — the country’s gold- and foreign-reserve-backed currency introduced in 2024.
According to the Finance ministry and the Reserve Bank of Zimbabwe, the ZiG has maintained stability against the US dollar since its launch, anchoring inflation expectations.
Monthly inflation, once running in the triple digits, has fallen into the single-digit range by late 2025, marking one of the most notable macroeconomic turnarounds in recent years.
Finance minister Mthuli Ncube stated that with disciplined fiscal management and transparency in gold and reserve reporting, Zimbabwe could sustain low inflation through 2026.
The government’s forecast places inflation in the single to low double digits, supported by tight monetary controls and improved revenue collection.
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The International Monetary Fund (IMF) acknowledged the early success of the ZiG in its mid-year review, citing enhanced price stability and restored confidence in the banking system.
Businesses have begun adjusting prices in local currency and public-sector salaries are increasingly being paid in ZiG — signalling growing market trust.
Independent analysts, however, remain cautious.
They note that maintaining stability will require consistent foreign-exchange inflows, fiscal discipline, and credibility in reserve management.
The introduction of the ZiG marks Zimbabwe’s latest attempt to rebuild monetary sovereignty after years of dollarisation and hyperinflation.
If sustained, it could become a model for commodity-backed monetary policy in frontier economies seeking to restore confidence and domestic liquidity.
For now, the stabilisation of prices and the forecasted decline in inflation represent a rare moment of optimism — suggesting that, after years of uncertainty, Zimbabwe’s economic management may finally be turning a corner.
Emmanuel Chilamphuma