Source: ZNCC calls for more financial inclusion, through reducing bank charges – herald
Sikhulekelani Moyo sikhu.moyo@chronicle.co.zw
ZIMBABWE National Chamber of Commerce (ZNCC) has called upon the Reserve Bank of Zimbabwe (RBZ) to persuade financial institutions to promote financial inclusion through reducing bank charges and enforcing transparency on non-funded income, amongst other things.
This came out on ZNCC 2026 Monetary Policy Submissions, where the chamber said high commissions and fees have been limiting financial inclusion and formal banking, saying that the closure of dormant corporate accounts worsens the problem.
ZNCC said businesses, especially SMEs, avoid banking channels despite the mandate to adopt the use of POS machines, weakening financial intermediation and policy transmission.
“The Central Bank should intensify its campaign to persuade financial institutions to reduce bank charges, enforce transparency on non-funded income, and require a minimum six-month grace period before closing inactive corporate accounts,” said ZNCC.
“The chamber continues to call for the removal of the Intermediated Money Transfer Tax (IMTT), which adds a layer to transaction costs.”
Businesses have been calling for the removal of IMTT, which saw the Government reducing it from 2 percent to 1,5 percent on ZIG transactions and remaining 2 percent on US dollar transactions.
The organisation also said the Bank Policy Rate of 35 percent, while justified on inflation expectations, has translated into ZiG lending rates of 40–47 percent, significantly constraining access to credit for productive sectors despite the Targeted Finance Facility (TFF).
“High real borrowing costs suppress private investment, capacity utilisation, and export competitiveness. The budget projects a near-balanced position with a minimal deficit of 0,2 percent of GDP (ZiG 3,2 billion),” said ZNCC.
“On paper, this is highly interest-rate friendly as it reduces the need for the Government to borrow from the domestic market.
“Despite the low formal deficit, US$9,8 billion in domestic arrears was reported. The 2026 budget proposes converting part of these into long-term instruments, payable through 2030. If the Government fails to manage these arrears transparently, it may still be forced to issue treasury bills or rely on central bank overdrafts.”
The organisation said weak financial intermediation persists, with liquidity concentrated in a few banks and limited transmission to the real economy, saying that while the Targeted Finance Facility (TFF) is acknowledged, its scale, access constraints, and bank-level risk aversion mean it cannot substitute for a functional credit market.
ZNCC recommended the Government to retain positive real interest rates but signal a data-contingent, gradual easing path as inflation expectations stabilize, to restore investment confidence.
However, the organisation said if the VAT hike of 0,5 percent causes a price “blip”, cutting interest rates in early 2026 may be postponed, keeping real rates higher for longer to anchor expectations.
“Critically, synchronise rate cuts with inflation to avoid excessive real borrowing costs. Promote longer-term savings instruments through differentiated statutory reserve requirements (lower for time deposits), strengthening domestic resource mobilization,” said ZNCC.
“Monitor tax-induced inflation from the VAT increase before committing to further easing. Maintain monetary discipline and avoid any return to monetary financing (no quasi-fiscal operations).”
Meanwhile, ZNCC said the ZiG has recorded increased acceptance in transactions, largely underpinned by recent macroeconomic and exchange rate stability achieved through a tightened monetary policy stance.
However, the business lobby organisation said business confidence in the long-term sustainability of this stability remains fragile.
“A significant proportion of businesses continue to anchor expectations on past currency disruptions, policy inconsistencies, and episodes of political uncertainty, particularly around election cycles,” said ZNCC.
In addition, structural weaknesses such as insufficient foreign exchange reserves remain a binding constraint to confidence in a mono-currency framework.”
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