Zimbabwe National Chamber of Commerce (ZNCC) Chief Executive Officer Chris Mugaga says the Reserve Bank of Zimbabwe’s decision to maintain the bank policy rate at 35 percent continues to restrict access to credit for productive sectors, despite broader efforts to stabilise the economy.
Mugaga made the remarks following the presentation of the 2026 Monetary Policy Statement by RBZ Governor Dr John Mushayavanhu in Harare on Friday, where captains of industry gave mixed reactions to the central bank’s policy direction.
He noted that Zimbabwe’s lending rate remains significantly higher than those in regional economies such as Malawi and Nigeria, where policy rates are around 27 percent, arguing that the elevated rate discourages financial institutions from extending credit lines to businesses.
While raising concerns over borrowing costs, industry leaders acknowledged that several measures announced by the central bank are helping maintain macroeconomic stability. These include clearer guidance toward a future mono-currency framework and the scrapping of charges on cash deposits and bank balance inquiries.
Confederation of Zimbabwe Retailers President Denford Mutashu welcomed the reduction in withdrawal charges and the introduction of deposit incentives, saying the changes respond to long-standing concerns from businesses and consumers over banking costs.
Economist Professor Gift Mugano said it was still premature to expect lower interest rates, noting that authorities were focused on consolidating recent economic gains before introducing monetary easing.
The Reserve Bank’s cautious approach has contributed to improving economic indicators, including single-digit inflation recorded earlier this year for the first time since 1997, with latest figures showing inflation easing from 4.1 percent to 3.8 percent.
