IMF highlights stabilisation in Zimbabwe's economy amidst ongoing challenges

THE International Monetary Fund (IMF) has delivered a cautiously optimistic assessment of Zimbabwe's economy, suggesting that it was stabilising despite ongoing policy and monetary challenges that have historically plagued the nation.

- TAWANDA KAROMBO

South Africa’s northern neighbor has long struggled for stability, with consumers and companies hard done by policy inconsistency that has distorted pricing.

South African companies in Zimbabwe include platinum group metals producers Impala Platinum and Sibanye-Stillwater, Pick 'n Pay and Old Mutual, among others.

The IMF this week said Zimbabwe was now “experiencing a degree of macroeconomic stability despite lingering policy challenges” after emerging out of “successive bouts of hyperinflation” over the past few years.

Zimbabwe yearns to return to a single local currency regime by 2030 and the IMF has been supportive of the Zimbabwe Gold (ZiG) local unit of exchange, saying a tight monetary policy has helped to stabilize the local currency and reduce inflation.