Prof Gift Mugano Praises Mnangagwa

🇿🇼 Zimbabwe Economist Commends RBZ for Surpassing $1 Billion Reserves

Professor Gift Mugano praises central bank’s reserve build-up and inflation control.

Key Facts

• Professor Gift Mugano met with RBZ Governor John Mushayavanhu and his team on December 10, 2025.

• Mugano commended the central bank for being the first time the RBZ has built foreign exchange reserves above $1 billion.

• Annual inflation in the Zimbabwe Gold (ZiG) currency dropped to 18.88 percent in November 2025.

• The inflation rate fell sharply from a peak of nearly 95 percent recorded between April and July 2025.

• The RBZ has ensured timely payments of exporters’ retention schemes, boosting foreign currency inflows.

• The meeting focused on discussions regarding money supply management and ongoing economic stabilization efforts.

A Rare Endorsement Signals Confidence in ZiG’s Stability

Professor Gift Mugano’s endorsement of the Reserve Bank of Zimbabwe’s recent achievements underscores a rare moment of alignment between independent economists and government institutions in a nation long plagued by currency volatility. During a year-end catch-up meeting in Harare, Mugano highlighted the central bank’s role in amassing over $1 billion in foreign reserves—a threshold projected earlier but now realized ahead of schedule. This buildup, fueled by a 150 percent surge in reserves since mid-2024, signals improved liquidity and potential for greater macroeconomic stability. Critically, exporters’ prompt retention payments have further encouraged dollar inflows, reversing years of distrust in the national financial system.

The inflation trajectory offers tangible relief to Zimbabweans grappling with severe price surges. From a peak of 95 percent earlier in 2025, the ZiG’s annual rate eased dramatically to 18.88 percent by November, driven by tighter monetary policy and robust gold-backed reserves. Central bank measures, including a steady 35 percent benchmark rate, have successfully curbed money supply growth without stifling economic activity. Yet challenges persist: while the $1 billion reserve provides a vital buffer against external shocks, risks from fiscal deficits and drought-induced agricultural shortfalls could test this progress in 2026. Mugano’s commendation, echoed in his prior July meeting with Mushayavanhu, reflects a cautious optimism that these monetary steps could successfully anchor the multi-currency framework.

Analysts view the reserves milestone as a crucial pivot point for rebuilding investor confidence, potentially easing access to international financing long denied to Zimbabwe. The RBZ’s strategic focus on gold-denominated assets has insulated the ZiG from immediate dollar shortages. However, transparency remains a key concern, with skeptics questioning the reserves’ audit accessibility and long-term sustainability amid global commodity fluctuations. As Zimbabwe navigates its post-hyperinflation recovery, such policy dialogues between leading independent experts like Mugano and top officials could foster broader reforms, including potential debt restructuring under the G20 Common Framework.

Chronology of Stabilisation Efforts

• December 10, 2025 (Today): Professor Gift Mugano meets with RBZ Governor Mushayavanhu to praise the central bank for surpassing the $1 billion reserve mark and achieving significant inflation reduction.

• December 10, 2025, 2:09 p.m. GMT: Mugano posts details of the meeting and RBZ accomplishments on X, garnering significant public and media attention.

• December 1, 2025: RBZ releases statistics showing ZiG annual inflation at 18.88 percent for November, confirming the sharp downward trend from the previous month.

• November 29, 2025: Official government statistics are released, verifying that month-on-month food inflation held steady at 0.7 percent, indicating price stability.

• September 27, 2025: Foreign reserves are reported to have reached $900 million, solidifying projections for the $1 billion goal to be achieved by year-end.

Key Players

• Professor Gift Mugano: Prominent Zimbabwean economist and director at the Centre for African Governance & Development; a frequent government critic who has become an advocate for recent RBZ reforms.

• John Mushayavanhu: Governor of the Reserve Bank of Zimbabwe since 2024; the architect of the ZiG currency introduction and the strategy for reserve accumulation.

• RBZ Executive Team: The policy advisors and operational staff responsible for managing money supply, executing monetary controls, and ensuring timely exporter payments.

• Zimbabwean Exporters: Key drivers of the reserve growth, who are benefiting from and responding positively to the timely and reliable payment of retention schemes.

• International Creditors: Entities closely monitoring the growing foreign reserves as a crucial indicator for re-engagement and any potential debt relief discussions.