Workers in Zimbabwe’s banking sector are increasingly being pushed into insecure, fixed-term contracts without medical aid, pensions, or social security as the central bank maintains a tight monetary stance, a trade union said this week.
This trend compounds technology-driven upheavals that have already caused about 500 workers lose their jobs since 2025, according to the Zimbabwe Banks and Allied Workers’ Union (ZIBAWU).
The Reserve Bank of Zimbabwe has kept its policy rate at 35%, while weighted lending rates hover between 40% and 49%, to entrench recent gains in price and currency stability. But in an interview with businessdigest, ZIBAWU secretary-general Shepherd Ngandu said most banks have adopted a “wait-and-see” approach to lending.
“Banks rely on lending as their main source of income, but because most loans are short-term — typically 12 to 24 months — many new employees are being hired on precarious, fixed-term contracts,” he said.
“These contracts often come with no social security, medical aid, pension, or favourable working conditions. Workers are suffering under the monetary squeeze currently prevailing in the sector.”
The Bankers’ Association of Zimbabwe (BAZ) disagrees. Chief executive officer, Fanwell Mutogo, argued that current policies have ushered in a single-digit inflation era — a first in years — which actually boosts lending appetite.
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“Far from a ‘wait-and-see’ approach, this stability significantly enhances lending appetite,” Mutogo said.
“A predictable economic environment allows financial institutions to assess risk more accurately and extend credit with greater confidence. We remain optimistic that this stability will be maintained in the foreseeable future.”
On contract-based employment, he added: “The nature of an employment contract is typically determined by the specific requirements of the role. Like any dynamic sector in a growing economy, banks often require fixed-term contracts to manage specific projects or seasonal increases in workload. This flexibility is standard practice across various global industries and allows the sector to remain agile.”
Mutogo maintained that the banking sector remains committed to being a premier employer, ensuring that working conditions and job security align with labour regulations and the long-term sustainability of the industry.
The union said since January 2025, Zimbabwe’s banking sector has shed more than 500 jobs, driven largely by artificial intelligence, digitalisation, and restructuring.
Mutogo said while BAZ does not have specific data to confirm figures cited by the union, it is important to view the sector’s evolution through the lens of modernisation rather than contraction.
He said ongoing investments in digital infrastructure are driving a strategic reassignment of roles.
“As banking becomes more automated, the industry is shifting focus toward high-value human interactions and technical oversight,” Mutogo said.
“In many instances, this process involves upskilling staff and transitioning them into new, tech-enabled functions that better serve the modern consumer — rather than a simple loss of employment. Our goal remains to balance operational efficiency with the continued growth and development of our human capital.”
During his Workers’ Day address on May 1, 2026, President Emmerson Mnangagwa called for an immediate end to the casualisation of labour in Zimbabwe, urging employers to stop using perpetual short-term contracts for roles that are continuous in nature.
“The challenge of casualisation must be confronted and addressed. Where work is continuous, employment must be secure,” he said.
“The provisions of the law must be upheld without fear or favour, and exploitation, which is often disguised as flexibility, must be expunged.”
The President pointed to government initiatives, including the national employment policy and broader formalisation strategy, as key tools to reform the labour market.
Across southern Africa, similar pressures are reshaping banking sector employment as institutions balance tight monetary conditions with rapid digital transformation. In countries such as South Africa and Zambia, high interest rate environments have dampened credit growth, prompting banks to contain costs through restructuring, automation, and a shift toward flexible staffing models.
At the same time, regulators and labour groups across the region are increasingly raising concerns about the rise of contract-based employment and the erosion of traditional benefits, even as banks post stronger balance sheets. This tension between stability-focused monetary policy and labour security is emerging as a defining feature of the region’s financial sector transition.