Wary of global tensions, Zimbabwe holds interest rates at 35%
Zimbabwe, wary of a rise in global tensions, resolved to leave its bank policy rate unchanged at 35%, according to John Mushayavanhu, the central bank governor.
'The MPC noted the broad-based deceleration of global growth occasioned by escalating trade tensions, geo-economic fragmentation, regional and international conflicts and policy uncertainty,' Mushayavanhu said in a statement Monday after a surprise meeting of the Monetary Policy Committee. 'Considering the challenging and rapidly evolving risks to the global growth outlook, the MPC advised the Reserve Bank to maintain a sufficiently tight monetary policy stance.'
The central bank was set to hold a rate setting meeting only later this month on June 27, according to a schedule available on its website. Despite, the current uncertain global environment, the bank said it still sees 6% growth in the domestic economy as achievable this year. The strong performance of agriculture is expected to help spur the expansion after improved output from key crops including corn, tobacco and cotton.
'Other sectors are also expected to record positive growth performance, benefiting from the prevailing price and exchange rate stability,' Mushayavanhu added.
The southern African nation has kept rates unchanged since it lifted them last September in response to a sharp devaluation of its gold-backed currency, the ZiG. Businesses have repeatedly asked the central bank to reconsider its tight monetary policy stance, which is causing a severe liquidity crunch in the economy.
The bank maintains that its policy has helped stabilize the ZiG, short for Zimbabwe Gold, and is seeing increased usage in the economy. It is now used in 43% of transactions in the economy up from 26% last April, according to the governor. The foreign currency reserves backing the ZiG stood at $701 million as of last Friday.
The International Monetary Fund last week also voiced support for the ZiG to become the sole currency in the economy. The ZiG is the nation's sixth attempt at establishing a functioning local currency since 2009.
© Copyright The Zimbabwean. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
37 minutes ago
- Zawya
Nigeria to introduce real-time tracking for oil export shipments
Nigeria's oil regulator is set to bring in a new rule that requires oil producers to obtain an export permit, vessel clearance and a unique identification number to enable real-time tracking of cargoes, based on regulations seen by Reuters. The government said the updated regulations are designed to enable real-time monitoring of oil cargo exports, aiming to combat theft and under-declaration at export terminals, and thereby significantly enhance government revenue. The new rules mark a significant departure from the previous system which only required producers to declare cargoes to customs authorities for export permit issuance. "The new guidelines represent a significant step toward a more transparent, accountable and efficient oil export regime in Nigeria," the spokesperson for the regulator said. Reinforcing the necessity of these changes, Ayodele Oni, an energy lawyer at Lagos-based Bloomfield law firm, said the previous system was not equipped for real-time tracking. "This deficiency led to issues such as under-reporting, theft, revenue loss and mismatches in export data," Oni said. Under the revised framework, known as the Nigerian Upstream Petroleum Advance Cargo Declaration Regulation, exporters must file comprehensive details of the vessel and cargo in advance, including the consignee, port destination, tonnage and estimated time of arrival. Strict compliance with these new regulations is mandatory and non-compliance carries potential penalties of up to $20,000. (Reporting by Isaac Anyaogu. Editing by Jane Merriman)
Zawya
an hour ago
- Zawya
African Refiners & Distributors Association (ARDA) Executive Secretary Joins African Energy Week (AEW) 2025 in Support of Africa's Growing Downstream Sector
Anibor Kragha, Executive Secretary of the African Refiners&Distributors Association (ARDA) – a pan-African organization that serves as the voice of the continent's downstream sector – will speak at this year's African Energy Week (AEW): Invest in African Energies conference. Taking place on September 29-October 3 in Cape Town, the event is the largest gathering of energy stakeholders on the continent. Kragha's participation will contribute to discussions on the downstream sector, covering challenges, opportunities, trends and projects. This comes as many of Africa's major oil and gas producers – including Nigeria, Angola, Algeria and the Republic of Congo – pursue bold strategies to strengthen domestic petroleum value chains. These efforts aim to reduce refined petroleum imports and improve fuel security. ARDA plays a key role by promoting strategic collaboration, policy advocacy and industry innovation. Recently, the association called for the creation of an African downstream register to better support projects. At AEW 2025: Invest in African Energies Kragha is expected to outline the benefits of such a register and highlight ARDA's strategies to drive downstream expansion. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Refinery development is a critical priority for many African countries, with several major projects underway to boost regional fuel distribution and lower costs. Angola is advancing three new facilities aiming for a combined capacity of 445,000 barrels per day (bpd), including the 60,000 bpd Cabinda refinery (expected online in 2025), the 200,000 bpd Lobito facility and the 150,000 bpd Soyo project. Nigeria's Dangote Refinery, Africa's largest at 650,000 bpd, is progressing toward full operational capacity. In the Republic of Congo, the Fouta Refinery, designed to produce 2.5 million tons of petroleum products annually, is slated to begin operations by the end of 2025. South Africa plans to rehabilitate the SAPREF refinery, which has been closed since 2022. The refurbishment aims to raise capacity from 180,000 bpd to 600,000 bpd, opening new opportunities for affordable fuel supply. Beyond refineries, several African countries are prioritizing cross-border pipelines to boost exports and regional fuel distribution. Notable projects include the 1,443-km East Africa Crude Oil Pipeline linking Uganda's oilfields to Tanzania's Port of Tanga and expected to start operations in 2026. Nigeria's $25 billion Nigeria-Morocco Gas Pipeline will traverse 13 West African countries over 5,660 km to connect Nigerian gas fields with European markets via Morocco, with production targeted for 2029. Meanwhile, a planned $13 billion pipeline running from Nigeria through Niger to Algeria, spanning 4,128 km and delivering 30 billion cubic meters of gas annually, aims to facilitate regional exports and deeper African collaboration. While these developments mark significant progress toward expanding fuel distribution in Africa, achieving downstream ambitions requires substantial investment. Kragha's participation at AEW 2025: Invest in African Energies is expected to provide valuable insights on sector challenges and opportunities, fostering new deals and partnerships. 'In order to end energy poverty by 2030, Africa must significantly scale up investments across the downstream sector,' says Ore Onagbesan, Program Director of AEW 2025. 'By shifting from an export-driven to a domestic-focused mindset, the continent can unlock greater value from its oil and gas resources. Organizations like ARDA recognize the critical role refining, pipelines, petrochemicals and terminals play in enhancing energy security across Africa.' Distributed by APO Group on behalf of African Energy Chamber.
Zawya
an hour ago
- Zawya
Shell Trading & Shipping's Filippo Bof Joins Angola Oil & Gas (AOG) 2025
Filippo Bof, Head of Business Development: Africa and Med at Shell Trading&Shipping – the trading and supply branch of energy major Shell – will speak at this year's Angola Oil&Gas (AOG) conference. Taking place on September 3-4 in Luanda, the event is the official meeting platform for the country's hydrocarbon sector, uniting investors and operators from across the entire petroleum value chain. With a prominent presence in Africa, Shell Trading&Shipping is well-positioned to lead discussions on enhancing regional trade and petroleum distribution. During AOG 2025, Bof will participate in a panel discussion titled: From Extraction to Expansion: Financing Angola's Oil&Gas' Development, where he is expected to share insight into the role of multilateral lenders, development banks and private equity in unlocking projects across the value chain. Shell Trading&Shipping is seeking new opportunities to finance oil and gas projects, and with its expertise in hydrocarbon trade, stands to play an instrumental role in supporting the next wave of downstream developments in Angola. AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the National Oil, Gas and Biofuels Agency; the Petroleum Derivatives Regulatory Institute; national oil company Sonangol; and the African Energy Chamber; the event is a platform to sign deals and advance Angola's oil and gas industry. To sponsor or participate as a delegate, please contact sales@ As sub-Saharan Africa's second-largest oil producer, Angola has ambitions to position itself as a regional petroleum hub. The country is accelerating the development of downstream infrastructure to achieve this goal, with projects underway in refining, petrochemical production and cross-border pipelines. Upcoming refining projects include the first phase of the Cabinda Refinery (30,000 bpd); the Lobito Refinery (200,000 bpd) and the Soyo Refinery (150,000 bpd). The Cabinda Refinery is expected to begin operations in 2025 while Angola is currently seeking $4.8 billion to bridge the financing gap for the Lobito Refinery. Additionally, the country has signed an agreement with Zambia for the development of a 1,400 km pipeline linking the Lobito Refinery to Zambia's capital city Lusaka. Technical work for the pipeline was completed in 2024. In addition to crude facilities, Angola strives to diversify its economy through natural gas projects. The country currently exports natural gas as LNG, primarily through its sole LNG facility in Soyo. Looking ahead, Angola seeks to develop steel and petrochemical manufacturing, while accelerating regional LPG distribution. These developments highlight a unique investment opportunity for global financiers, project developers and traders. Shell Trading&Shipping – with its global network of trading teams, shipping and maritime capabilities – offers an integrated network of supply and distribution abilities, and as such, has emerged as a strong partner for Angola as it strives to bolster exports and regional distribution. Distributed by APO Group on behalf of Energy Capital&Power.
