Financial inclusion key for monetary policy success

Judith Phiri, Business Reporter

ECONOMIC analysts have highlighted that financial inclusion is vital for the effective implementation of monetary policy, as it fosters economic stability and supports inclusive growth across Zimbabwe.

Financial inclusion refers to ensuring that individuals and businesses have access to affordable and useful financial services — such as payments, savings, credit, and insurance — delivered responsibly and sustainably.

The Reserve Bank of Zimbabwe (RBZ) has embraced a developmental approach to promote financial inclusion.

In its recently announced monetary policy for the first half of 2025, the central bank outlined several policy measures aimed at consolidating stability while driving economic growth.

The 2025 Monetary Policy Statement, issued under Section 46 of the Reserve Bank of Zimbabwe Act (Chapter 22:15), comes at a time when the economy is experiencing relative inflation and exchange rate stability.

Speaking at a Policy Observatory Policy: Unpacking 2025 Monetary Policy on Wednesday in Bulawayo, economist and National University of Science and Technology (Nust) lecturer Mr Stevenson Dlamini said the monetary policy was a welcome development and there was need for more financial inclusion efforts.

Reserve bank of Zimbabwe

“The monetary policy is a critical step towards stability and growth. The success depends on addressing implementation challenges and ensuring inclusivity. There is need to enhance financial infrastructure, expand access to rural and informal sectors.

“We need an increased architecture of our financial sector in a way that it can include the marginalised communities. That way we will have a much more effective policy output,” he said.

He said simplified regulations and reduced bureaucratic hurdles will contribute to the ease of doing business that will encourage production and improve the resilience of value chains.

Mr Dlamini said there was a need to continuously monitor inflation to ensure balance, stability and growth of the economy.

He added: “As much as we are pursuing inflation targeting, let us also not negate the motive of growing the economy. Let us ensure there is continuous monitoring of the efforts to balance inflation and economic growth. There is a need to engage stakeholders, a good policy is inclusive in its design by ensuring that all communities participate in the policy design.”

Mr Dlamini said current economic growth and productive policies laid the foundation for the attainment of Vision 2030 of an upper-middle-income economy.

The event was hosted by the Public Policy and Research Institute of Zimbabwe (PPRIZ) and was meant to provide a platform where the 2025 Monetary Policy Statement can be unpacked for the public in layman’s terms.

Meanwhile, the RBZ Governor, Dr John Mushayavanhu is on record stating that financial exclusion contributed to serious risks and potential threats to the stability of the financial sector and the integrity of financial systems.

Dr John Mushayavanhu

“Inclusivity is good for financial stability because once segments of the population are excluded, there is the potential of running parallel market activities that have a destabilising effect on financial sector stability,” said Dr Mushayavanhu.

He noted that financial inclusion fostered a strong and resilient society in which all individuals have equal opportunities to engage in the nation’s economic activities and make meaningful contributions to the national goals of sustainable and inclusive economic growth.

To establish inclusive financial systems, the RBZ has been collaborating with the Ministry of Women’s Affairs, Community, Small and Medium Enterprises Development to ensure that this vital demographic group is financially included and able to contribute equitably to sustainable wealth creation.