By Dereck Goto – ZiG and the Economics of Sovereignty – Why Zimbabwe’s Mid-Term Statement Matters*

The Reserve Bank of Zimbabwe’s latest Mid-Term Monetary Policy Statement is far more than a set of dry financial accounts. It is an emphatic vindication of the Second Republic’s economic vision and ZANU PF’s unwavering commitment to restoring Zimbabwe’s sovereignty over its economy. Issued less than a year after the historic launch of the Zimbabwe Gold (ZiG) in April 2024, the statement is a sober yet confident declaration: stability is here, recovery is real, and the framework of a self-reliant economy is steadily being built.

At its core lies an unshakable truth – disciplined monetary management, anchored in clear political direction, works. Monthly inflation from February to July 2025 averaged a mere 0.6%. This was not achieved through gimmicks, but through deliberate, sustained policy action. While annual inflation remains higher due to legacy price shifts, projections for the year-end indicate a drop to around 30% – a sign of structural, not superficial, stability.

Equally notable is the steadiness of the ZiG/US dollar exchange rate. This is not the false calm of overregulation, but the result of strong economic fundamentals. In just six months, foreign currency inflows surged to US$7.2 billion, up from US$5.9 billion during the same period last year. This growth is driven by resilient exports and the patriotic remittances of Zimbabwe’s diaspora, whose confidence in the home economy is returning. A stable currency ensures stable prices, better business planning, and a stronger foundation for de-dollarisation.

Growth figures reinforce this progress. After a modest 1.7% GDP rise in 2024, the economy is now forecast to expand by 6% in 2025. This growth is not by chance; it is the result of deliberate, sector-focused policies: mechanisation and input support in agriculture, beneficiation in mining, the revival of manufacturing through local value chains, and the repositioning of Zimbabwe as a serious tourism destination. These are not abstract numbers – they translate into jobs, higher household incomes, and renewed fiscal space for national development.

Confidence in the ZiG is visibly strengthening. In April 2024, only 26% of electronic transactions were ZiG-denominated; by June 2025, this had climbed above 40%, supported by improved cash availability through the banking sector. This is monetary sovereignty in action – a steady, credible shift away from reliance on foreign currency.

The RBZ has matched this confidence with prudence. Liquidity has been carefully managed through refined open market operations, particularly more effective Certificates of Deposit. At the same time, foreign currency reserves have more than doubled – from US$285 million in April 2024 to over US$730 million by June 2025 – providing the stability and security needed to protect savings, finance imports, and anchor the exchange rate.

This progress has not gone unnoticed. Stakeholders across business, industry, and civil society have endorsed the current approach, calling for a clear de-dollarisation roadmap, continued support to productive sectors, and open, consistent communication to strengthen public trust. The RBZ’s responsiveness reflects an institution maturing alongside the economy it serves.

The message is clear: Zimbabwe’s economic transformation is not accidental. It is the direct result of disciplined policy, political will, and the strategic leadership of ZANU PF. The ZiG is more than a currency – it is a statement of intent, a symbol of restored confidence, and a tool for national self-determination. The Second Republic has not just steadied the ship – it is charting a clear, sovereign course toward sustainable growth and resilience, despite global economic crosscurrents.