Employers’ Confederation of Zimbabwe (Emcoz) president Demos Mbauya (pictured) has called on businesses to leverage recent stability to reposition themselves for regional and international markets.
Zimbabwe’s annual inflation rate has fallen below 10% for the first time since 1997, a milestone for a country once synonymous with hyperinflation and trillion-dollar banknotes
The drop in the inflation rate has been linked to the relatively stable exchange rate that has fluctuated in the US$1:ZiG25 to ZiG29 range for several months.
Both the exchange and inflation rates are being used by the authorities to justify their hawkish fiscal and monetary stances.
“Businesses must not be passive beneficiaries of stability. Enterprises must deliberately leverage the current relative macroeconomic stability to reposition for regional and international competitiveness,” Mbauya said during an Emcoz symposium titled Positioning Business for Sustainability and Growth in 2026 and Beyond.
“Zimbabwean firms must strengthen productivity, modernise operations, enhance quality standards, deepen value addition, and reduce cost structures in order to compete effectively within Sadc, the broader African market under the African Continental Free Trade Area (AfCFTA), and global value chains.”
He added that AfCFTA, in particular, presented unprecedented market access opportunities; hence, the need for businesses to be competitive, determined to comply with regional standards, and able to adapt to technological innovation.
“This is, therefore, the moment for enterprise restructuring, export reorientation, regional partnerships, innovation investment, and skills upgrading,” Mbauya said.
“We encourage stronger alignment with the Sadc Industrialisation strategy, enhanced value-chain integration, and the development of export financing mechanisms that enable firms—particularly SMEs—to scale into regional markets.
“Businesses that act decisively now will shape Zimbabwe’s regional and continental footprint in the years ahead.”
He called on the government to continue fostering a stable economic environment to deal with current pressing issues such as tax clarity, policy, and currency stability.
“As Emcoz, we acknowledge the progress achieved in restoring macroeconomic stability, and we urge the government to continue undertaking consistent, disciplined, and transparent measures to safeguard and consolidate this stability,” Mbauya said.
“Sustained macroeconomic predictability is not merely a policy objective—it is the foundation upon which long-term investment decisions, wage negotiations, export contracts, and capital mobilisation are built.”
However, the Emcoz boss condemned the underlying issues around the economic environment that continuously harm businesses, saying that these factors remain the key factor behind the economic slowdown.
“Structural challenges remain—high utility tariffs, logistics costs, infrastructure deficits, constrained access to long-term finance, and energy deficits—which continue to affect productivity and competitiveness,” Mbauya said.
“Addressing these constraints through coordinated reforms, infrastructure investment, and innovative financing mechanisms remains vital to unlocking the full potential of the private sector.”
He added: “Our programme is deliberately structured to provide clarity on the key regulatory and policy developments shaping the 2026 business environment.
“We will interrogate the evolving tax, inflation, and currency dynamics and their implications for enterprise sustainability; the 15% digital services withholding Tax—its scope, compliance obligations, and impact on digital transformation.
“The practical implications of the new Labour court rules for employers and HR practitioners and the proposed Road Accident Fund framework and emerging employer responsibilities.
“These issues directly affect payroll systems, compliance costs, labour relations, governance frameworks, and enterprise risk management.”
Mbauya commended the ongoing ease of doing business reforms aimed at rationalising taxes, levies, licensing fees, and regulatory charges.
“Their full operationalisation will lower transaction costs, simplify compliance, and strengthen formal sector growth,” he said.
“Implementation must remain clear, proportionate, predictable, and supportive of innovation—particularly within the digital economy.”
He also called for the adoption of automation, artificial intelligence, data analytics, fintech solutions, and e-commerce platforms to further help businesses.