
HARARE – The Zimbabwe National Chamber of Commerce (ZNCC) has issued a stark warning to authorities, highlighting that the country’s foreign currency reserves of US$540 million are insufficient to cover even one month’s import bill, as Zimbabwe grapples with a growing import burden, a report by the Zimbabwe Independent said.
The southern African nation, saddled with a US$21 billion debt and restricted from accessing international credit lines, is finding it increasingly difficult to bolster its depleting forex reserves. According to ZNCC’s latest industry and commerce report, Zimbabwe’s imports reached US$835.8 million in October 2024, creating significant economic challenges.
“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 ZNCC stated.
“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.”
Rising Receipts But Lingering Challenges
Finance Minister Mthuli Ncube, in his 2025 National Budget statement, noted that Zimbabwe’s foreign currency receipts increased by 17.9% during the first nine months of 2024, reaching US$10 billion compared to US$8.5 billion over the same period in 2023. The growth was largely driven by higher export receipts and diaspora remittances, which accounted for 59% and 25% of total inflows, respectively.
However, the ZNCC emphasised that the introduction of a gold-backed currency in April 2024 has exacerbated exchange rate volatility. The rapid depreciation of this currency, coupled with an expedited de-dollarisation policy framework, has unsettled both households and businesses.
“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,” the ZNCC report 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.”
Parallel Market Dynamics
The ZNCC also highlighted that many Zimbabweans are offloading their ZiG earnings on the parallel market, irrespective of prevailing rates, to access US dollars. Others are taking advantage of rate differentials on the formal market to convert their balances.
The economic pressures are a reminder of the delicate balance Zimbabwe must maintain in its currency and monetary policies, as the nation seeks to stabilise its exchange rates and ensure sustainable economic growth.