By A Correspondent
Zimbabwe’s economic outlook continues to darken as inflationary pressures mount, prompting strong warnings from the country’s largest business lobby. The Confederation of Zimbabwe Industries (CZI) has raised red flags over surging consumer prices and questioned the effectiveness of recent monetary reforms.
According to the Zimbabwe National Statistics Agency (ZimStat), annual inflation for April 2025 stood at 85.7%, the first such figure released since the rollout of the ZiG currency in April 2024. However, economists and independent analysts argue the real inflation rate could be far higher.
“We are deeply concerned about the trajectory inflation is taking,” CZI stated in its latest Inflation and Currency Developments Update. “Although the official figure is 85.7%, businesses on the ground are grappling with much steeper cost increases. It’s affecting borrowing, pricing, and long-term planning.”
The ZiG—introduced as a replacement for the collapsing Zimbabwean dollar (ZWL)—was initially hailed as a stabilizing force. But just a year after its launch, its credibility is under strain. “The ZiG was meant to restore confidence,” the CZI noted. “Instead, what we’re seeing are lingering effects of cumulative shocks from 2024, which have fueled persistent month-on-month inflation.”
Rising inflation has also pushed up interest rates, compounding the challenges facing both industry and households. “The cost of borrowing is now unsustainable for many companies,” a CZI spokesperson said. “This undermines production and ultimately impacts jobs and prices.”
Doubts over official inflation data are also growing. Bretton Woods institutions have reportedly requested access to ZimStat’s raw figures, expressing concern over the transparency and accuracy of the methods used.
As consumer purchasing power continues to erode, the private sector is urging authorities to urgently address economic fundamentals. “Stabilization must go beyond currency changes,” CZI emphasized. “It requires consistent policy, transparency, and confidence-building measures.”
With no clear relief in sight, both businesses and citizens are bracing for more difficult months ahead.