BY NOKUTHABA DLAMINI
Members of Parliament have urged the Reserve Bank of Zimbabwe (RBZ) to gradually reduce the country’s high interest rates, warning that expensive loans are hurting businesses, farmers and economic growth across the country, including in Matabeleland North.
Presenting a report on the 2026 Monetary Policy Statement in Parliament, the Portfolio Committee on Budget and Finance said the current bank policy rate of 35% was too high considering that annual inflation had fallen to around 4%. The committee said borrowing costs remain “prohibitive” for businesses seeking capital.
Committee chairperson Lincoln Dhliwayo told Parliament that industries were struggling to access affordable loans, with ZiG lending rates ranging between 40% and 47%.
Several MPs echoed the concern during debate, saying the high rates are slowing productivity and job creation.
Gladys Hlatywayo said Zimbabwe’s interest rates were far above those of neighbouring countries such as Zambia, Botswana and South Africa. He warned that local businesses were now operating in “survival mode” due to expensive borrowing.
“Madam Speaker, our bank policy rate at 35% is far too high,” he said. “Such a rate makes borrowing excessively costly.”
The committee recommended that the RBZ gradually reduce the policy rate by June 2026 while maintaining measures to control inflation and exchange rate instability.
For communities in Matabeleland North, the debate carries major implications. Small businesses, cross-border traders, tourism operators in Victoria Falls and farmers in districts such as Hwange, Lupane and Binga often rely on loans to expand operations or survive difficult seasons.
MPs also welcomed RBZ measures aimed at lowering bank charges and improving digital transactions, saying the reforms could help ordinary Zimbabweans access more affordable banking services.
The debate comes as Government continues efforts to stabilise the ZiG currency and strengthen confidence in the financial sector following years of economic volatility. Parliamentarians said stability alone was not enough unless it translated into affordable credit, investment and jobs.
