THE Zimbabwe National Chamber of Commerce (ZNCC) this week warned authorities that the country’s reserves amounting to US$540 million were insufficient to cover one month, amid a ballooning import bill.
Barred from accessing fresh credit lines from global lenders and hamstrung by a US$21 billion debt, the southern African nation is struggling to shore up its depleted foreign currency reserves.
In its latest industry and commerce report released this week, ZNCC cautioned that Zimbabwe’s imports, which stood at US$835,8 million in October 2024, presented enormous challenges for the country.
“Zimbabwe’s current foreign exchange reserves, amounting to approximately US$540 million as of 31 October 2024, are far from sufficient to inspire confidence,” the industry body said.
“While this figure reportedly provides more than three times the reserve money cover, it pales compared to the country's import needs.
"For perspective, Zimbabwe's imports in October 2024 alone totalled US$835,8 million, significantly higher than exports, which amounted to US$698,1 million.
"This means the country’s official reserves are insufficient to cover even one month's import bill, raising serious concerns about the sustainability of the nation's foreign currency management and the goal of exchange rate stability.”
Finance minister Mthuli Ncube indicated in his 2025 National Budget statement that Zimbabwe’s foreign currency receipts rose by 17,9%, to US$10 billion, during the first nine months of 2024, from US$8,5 billion received during the comparative period in 2023.
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The surge was attributed to improving export receipts and diaspora remittances, which accounted for 59% and 25% of total inflows respectively.
The ZNCC stated that Zimbabwe’s gold-backed currency, introduced back in April, which was rapidly depreciating on the market, was stoking exchange rate volatilities.
“The policymakers’ statements regarding the expedited de-dollarisation framework following the new currency’s launch have further discouraged households and businesses from holding onto the ZiG for extended periods,” it noted.
“This reaction is rooted in memories of the policy steps taken in 2019 under similar circumstances.
"Moreover, with the government being the largest employer and the ZiG essentially functioning as a 'small change', civil servants, other employees, and employers — whose incomes are predominantly in ZiG — face challenges.
“Despite earning in ZiG, they must pay for essentials such as transportation, fuel, rent, and groceries, which are generally cheaper in US dollars.
"As a result, many are offloading their ZiG earnings on the parallel market, irrespective of the prevailing rate, while others are offloading their ZiG balances on the formal market, taking advantage of the rate differentials.”
