The People’s Own Savings Bank (POSB) recorded a decrease in net profit to ZiG108.48 million for the six months ended June 30, 2026, from ZiG189.42 million in the comparable period, primarily due to regulatory monetary policy changes affecting non-funded income.
Early this year, the Reserve Bank of Zimbabwe introduced measures that scrapped balance enquiry fees and capped withdrawal and transaction charges, impacting financial institutions’ non-funded income.
The financial institution’s operating expenses increased by 3% to ZiG550.99 million during the period under review, from ZiG536.53 million, largely driven by business expansion initiatives, with the marginal increase demonstrating continued cost discipline.
POSB’s asset quality remained strong, with the non-performing loans ratio maintained at 2.09%, well below the regulatory threshold of 5%.
The institution’s liquidity remained robust, with a liquidity ratio of 72%, above the regulatory minimum of 30%.
The group’s capital adequacy stood at a healthy 36.56%, significantly exceeding the regulatory minimum of 12%, reflecting the its strong capital position and financial resilience.
“The board remains confident that the bank is well positioned to deliver a resilient performance in the second half of 2026,” POSB’s chairman Kenias Mafukidze said in a statement accompanying financials.
“While the monetary policy measures introduced during the first half of the year are expected to continue exerting pressure on non-funded income, the Bank will focus on growing its core business, diversifying revenue streams and maintaining disciplined cost management to preserve profitability.”
Supported by a strong capital base, robust liquidity and sound asset quality, he said POSB remains committed to delivering sustainable value to its stakeholders while advancing its financial inclusion agenda.
NMBZ Holdings reported a 337% surge in profit after tax to ZiG343.89 million for the six months ended June 30, 2026, up from ZiG78.70 million recorded in the prior year period, driven by total asset expansion and growing contributions from its regional fintech and microfinance acquisitions.
The financial services group’s total assets grew by 40% to reach ZiG13.09 billion during the period under review, up from ZiG9.35 billion at the end of December 2025.
The group’s net interest income surged by 84% to ZiG453.55 million compared to ZiG246.42 million in the half-year ended June 30, 2025, while total operating income rose 34% to ZiG1.29 billion from ZiG964.73 million.
Gross loans and advances expanded by 60% to ZiG6.81 billion from ZiG4.27 billion recorded in December 2025, supported by customer deposits growing to ZiG6.12 billion.
The group maintained a capital adequacy ratio of 19.46%, comfortably surpassing the regulatory minimum of 12%, while its non-performing loan ratio declined to 2.69%.
During the period under review, the company expanded its regional footprint through the acquisition of a 96.29% equity interest in Zambian deposit-taking microfinance institution Pulse Financial Service, trading as EFC Zambia.
From its consolidation date through June 30, 2026, EFC Zambia contributed ZiG50.49 million in net operating income and ZiG27.73 million in profit after tax to the group.
NMBZ Holdings Chairman Pearson Gowero attributed the strong financial metrics to favorable operating conditions and focused execution across the group’s subsidiaries.
“The operating environment across the Group’s core markets of Zimbabwe and Zambia remained broadly favourable during the first half of 2026, characterised by moderating inflation, greater exchange rate stability and resilient economic activity,” Gowero said.
“The board is encouraged by this performance, delivered against a backdrop of continued investment in initiatives aimed at strengthening and diversifying the group’s earnings base and supporting sustainable long-term growth.”
Gowero added that the company expects operating conditions to remain stable through the second half of the year.
“”Our strategic priorities remain the successful integration of EFC Zambia and the disciplined pursuit of growth while preserving asset quality and a strong capital base,” he noted.
NMBZ Holdings Chief Executive Officer Gerald Gore highlighted operational advancements in digital transformation, regional presence, and physical network expansion.
“We remained focused on growing the loan book prudently while preserving asset quality, diversifying our income streams and improving operational efficiency through continued investment in digital technologies, automation and artificial intelligence,” Gore said.
The group’s basic earnings per share rose to 77 ZiG cents from 18 ZiG cents in the comparative 2025 period, while headline earnings per share stood at 54 ZiG cents.
The World Bank Group has officially removed Zimbabwe from its classification of fragile and conflict-affected economies, effective July 1, 2026, marking a significant milestone in the country’s economic and institutional reform efforts.
The decision follows the introduction of the World Bank’s revised framework for the 2027 fiscal year, which established the Public Fragility, Conflict and Violence List and the Institutional Fragility List.
The former identifies nations where organised political violence impacts at least 20% of the population, while the latter includes countries with a Country Policy and Institutional Assessment score strictly below 3.0. Zimbabwe qualified for delisting after failing to meet the criteria for either category.
In a press statement, Minister of Finance, Economic Development and Investment Promotion, Hon. Professor Mthuli Ncube, welcomed the development as international validation of the country’s ongoing reforms.
“Under the World Bank Group’s revised classification framework for the 2027 fiscal year, Zimbabwe is no longer on the list of countries that are classified as fragile and conflict-affected economies. This marks an important milestone in the country’s ongoing economic and institutional transformation,” he said.
Prof Ncube stated that the reclassification “signals international recognition of Zimbabwe’s improving institutional resilience and provides further impetus to the reforms underway under the Second Republic toward attaining Vision 2030 and an empowered and prosperous upper-middle-income society.”
The Minister highlighted several economic indicators that coincided with the World Bank’s assessment, including a real Gross Domestic Product growth rate of 8.3% in 2025, driven by output across agriculture, mining, manufacturing, and services.
Annual ZiG inflation fell to 2.9% in August 2026, supported by improved fiscal and monetary discipline, controlled public expenditure, and limited monetary expansion.
The Minister also highlighted advancements in governance and fiscal transparency, noting that Zimbabwe achieved a transparency score of 62 out of 100 in the 2025 Open Budget Survey.
The result represents a 39-point increase in the country’s budget transparency score since 2017, positioning Zimbabwe among the top performers in Sub-Saharan Africa.
Prof Ncube said the delisting is expected to enhance the country’s global financial standing, reduce perceived investment risk, and boost both domestic and foreign direct investment.
He noted that the exit from the fragility lists will open opportunities for commercial project financing, infrastructure partnerships, and co-financing arrangements, while supporting the country’s Arrears Clearance, Debt Relief and Restructuring Process.
“Building a resilient, competitive, and inclusive economy that creates jobs, attracts investment, improves public services and raises the quality of life for all its citizens, leaving no one and no place behind, remains the Government’s top priority,” Prof Ncube said.
The Minister confirmed that the government intends to maintain its current policy trajectory, stating that it “remains committed to implementing the reforms necessary to consolidate macroeconomic stability, strengthen governance, improve the investment climate and advance the Structured Dialogue Platform on arrears clearance and debt resolution.”
Key stakeholders across Zimbabwe’s agricultural value chain will converge for the National Agriculture Conference and Expo (NACE) 2026 to drive the sector’s next phase of growth as the primary engine of the national economy.
Held under the theme Transforming Agriculture for Resilience, Investment, and Inclusive Growth, the high-level policy and investment platform will run from September 24 to 25, 2026, at the Diamond Conference Centre at the University of Zimbabwe.
Hosted by the Ministry of Agriculture, Mechanisation and Water Resources Development in collaboration with the Agricultural Marketing Authority (AMA) and Africa Economic Development Strategies (AEDS), the conference is structured around two key strategic targets.
NACE will develop a disruptive localisation strategy to eliminate agricultural import by US$2 billion and establish the country as a regional food hub.
Agriculture remains the cornerstone of Zimbabwe’s economy, underpinning rural livelihoods, industrial raw material supply, and foreign exchange generation.
Under the Agriculture, Food Systems and Rural Transformation Strategy I (AFSRTS), the sector expanded significantly, with its gross economic value growing from US$5.2 billion in 2019 to US$10.3 billion in 2024.
Key growth milestones during this period included record wheat harvests exceeding domestic requirements, cereal production reaching nearly 2.9 million tonnes, gains in dairy and livestock production, and the expansion of functional irrigated land from 151,000 to 233,000 hectares.
Despite these structural gains, the sector remains susceptible to external and environmental shocks, as highlighted by an estimated 12% contraction in 2024 caused by an El Niño-induced drought.
Persistent challenges such as infrastructure gaps, limited access to long-term capital, weak value chain integration, and low unit productivity continue to constrain maximum output.
NACE 2026 will serve as the operational alignment platform for AFSRTS Phase II (2026–2030), which targets scaling the agricultural economy to US$15.8 billion by 2030.
To achieve this trajectory, the conference will feature several core deliverables designed to translate policy into actionable investment outcomes.
The agenda includes the presentation and validation of an evidence-based State of the Agricultural Sector Study to outline structural bottlenecks, emerging risk factors, and short-to-medium-term sectoral outlooks through 2027.
Additionally, the event will mark the launch of the Agricultural Investment Prospectus, unveiling a curated pipeline of bankable opportunities across crop production, livestock, cold-chain logistics, and irrigation infrastructure to crowd in domestic and foreign direct investment.
Structured high-level public-private sector dialogues between government ministries, regulatory bodies, commercial financiers, input suppliers, and agribusinesses will address regulatory bottlenecks, de-risk primary production, and enhance local processing capabilities.
The conference will provide a platform for technology providers, financial institutions, and equipment manufacturers to showcase climate-smart innovations, precision farming tools, and modern mechanisation services.
The two-day summit will feature multi-sectoral participation spanning crop farming, livestock and dairy sub-sectors, agro-processing, agricultural finance, water resource management, and regional trade logistics.
Core thematic discussions will centre on scaling climate-resilient practices, expanding access to blended finance, strengthening trade linkages under the African Continental Free Trade Area, and integrating smallholder producers into commercial value chains.
FBC Holdings (FBC) reported total income of ZiG2.15 billion for the half year ended June 30, 2026, marking a 17.2% increase from ZiG1.83 billion recorded during the same period in 2025.
The financial institution’s non-funded income stream performance surpassed funded income, driven by transactional volume, customer acquisition, and investment returns.
FBC’s net interest income increased by 6.8% to ZiG774.21 million, up from ZiG 724.70 million in the prior-year period.
Net fee and commission income increased 12.4% to ZiG710.28 million, compared to ZiG631.91 million in the first half of 2025.
“The group delivered a resilient performance for the six months ended June 30, 2026, underpinned by broad-based growth across our core revenue streams,” FBC Chairman Herbert Nkala said in a statement accompanying the group’s financials.
“Total income increased by 17.2% to ZiG2.15 billion, from ZiG1.83 billion for the same period last year. This performance reflects the benefits of our diversified financial services model and the increasing contribution from customer-led, transactional and investment-related activities.”
The group’s dealing and investment-related income grew by 75% to reach ZiG530.17 million, compared to ZiG303.08 million recorded in the corresponding period of 2025.
Revenue from property sales doubled to ZiG40.23 million, up from ZiG21.97 million, while net income from property sales after development costs reached ZiG18.91 million.
Insurance revenue reached ZiG556.05 million compared to ZiG405.66 million in the prior year period.
Non-funded income components, including fee and commission income, foreign exchange trading, and processing fees, accounted for 72% of total income.
Operating expenses increased by 34.1% to ZiG1.55 billion, up from ZiG1.16 billion in the previous year, following expenditures in technology, staff costs, and infrastructure.
FBC’s profit before tax increased 23.8% to ZiG468.62 million, compared to ZiG378.51 million in the first half of 2025.
Profit after tax totaled ZiG344.22 million, down from ZiG909.69 million in the corresponding period, reflecting the impact of prior-period tax adjustments regarding the deductibility of interest expenses on credit lines.
“The group’s balance sheet also strengthened materially during the period. Total assets increased by 17.5% to ZiG26.33 billion from the audited December 31, 2025 position, while customer deposits increased by 20.4% to ZiG15.56 billion,” Nkala said.
He noted that the continued growth in deposits reflects the confidence that customers and funding partners place in the group.
FBC’s loans and advances to customers increased to ZiG11.96 billion during the period under review, up from ZiG10.99 billion. The group’s non-performing loans ratio improved to 3.03%, down from 4.22% recorded at the end of December 2025. The board declared an interim dividend of 0.32 US cents (195 ZWG cents) per share.
The government says converting agricultural land rights into secure, bankable, and transferable title deeds has the potential to unlock up to $20 billion in hidden economic value that is currently uncounted in Zimbabwe’s GDP.
Speaking at a high-level engagement on land tenure, Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube said agricultural farmland in Zimbabwe carries an average value of US6 cents per square meter, representing vast uncapitalised wealth.
He added that moving from administrative allocations, such as 99-year leases, offer letters, and permits, to legally registrable titles is designed to transform farmland from mere land-use access into a fully commercialised asset.
“At an average price of US6 cents per square meter, agricultural farm land in Zimbabwe has a hidden value, and titling land has the potential to unlock as much as US$20 billion, presently not accounted for in the current GDP accounting in Zimbabwe,” Prof Ncube said.
“The fundamental economic change is from administrative evidence of allocation to a legally recognisable asset around which farmers, financiers and investors can plan investment with greater certainty.”
To ensure lenders accept the new titles, he said the government is establishing five core pillars of bankability.
The pillars require legally enforceable rights, accurate digital surveys, credible valuation standards, cash-flow-based lending, and critical supporting infrastructure like insurance and irrigation.
Simultaneously, the government is building an integrated digital land-information system to eliminate double allocations and resolve boundary disputes.
Ncube cautioned financial institutions that title deeds must complement, rather than replace, sound credit evaluation, emphasising that default procedures must remain predictable and legally enforceable.
“A title deed is a necessary enabler of finance, but it is not, by itself, a loan,” Prof Ncube noted.
“Banks lend primarily against the capacity of an enterprise to generate cash flows and repay. Collateral strengthens that proposition by reducing loss in the event of default. Our task is therefore to make the deed legally dependable and the underlying farm enterprise financially viable.”
Drawing on international precedents, the Minister cited China’s certified long-term household contract rights and Mozambique’s Direito de Uso e Aproveitamento da Terra system as evidence that clear, durable, and transferable usage rights can mobilise investment without compromising underlying constitutional land ownership.
Zimbabwe’s annual ZiG inflation decreased to 2.9% in August 2026, from the July 2026 rate of 3.2%, marking eight consecutive months of single-digit inflation, official data shows.
The country’s consumer price inflation maintained its downward trajectory in August 2026, driven by continued price stability across both local currency and United States dollar transactions.
According to data from the Zimbabwe National Statistics Agency (ZimStat), on a monthly basis, the ZiG inflation rate remained flat at 0.1%, matching the July figure.
ZimStat highlighted that price movements in the ZiG Consumer Price Index for the month were predominantly driven by cost increases within the transport sector.
US dollar-denominated prices demonstrated absolute month-on-month stability. The USD month-on-month inflation rate dropped to 0.0% in August 2026, shedding 0.3 percentage points from the 0.3% rate registered in July 2026, as price indices across all commodity divisions remained constant.
Meanwhile, the USD year-on-year inflation rate held firm at 3.1% for the second consecutive month.
The Reserve Bank of Zimbabwe anticipates annual ZiG inflation to remain low and stable, averaging 5% and within the SADC macroeconomic convergence target of 3-7% by the end of the year.
Central bank governor Dr John Mushayavanhu said month-on-month inflation is projected to remain below 1%, without any significant domestic and external shocks.
This comes as development think-tank Africa Economic Development Strategies (AEDS) is of the firm view that the country will sustain single-digit inflation and entrench durable stability notwithstanding the existence of external shocks.
The AEDS projection is based on several reinforcing factors, which include firmly anchored inflation expectations, tight monetary policy, sustained stability in the local currency’s exchange rate, and strengthened coordination between monetary and fiscal authorities to prevent deficit monetisation.
Gold producers in Zimbabwe continue to benefit from firm bullion prices, with Fidelity Gold Refinery (FGR) offering up to US$141.08 per gram for fire-assayed gold today.
The latest figures show that the price paid to producers varies according to the quality and assay category of the gold being sold.
Gold with a specific gravity of 90% and above was being bought at US$140.34 per gram, equivalent to US$4,365.06 per troy ounce.
The local prices come as international gold prices remain elevated, providing a favourable backdrop for Zimbabwe’s gold mining industry.
The strong bullion market is particularly important for Zimbabwe because gold remains a major source of mineral export earnings.
Higher prices allow producers to generate more revenue from existing output, while also improving the economic case for investment in exploration, mining and processing.
The latest price movements also fit into Zimbabwe’s broader push to get more value from its mineral resources.
Rather than relying heavily on the export of raw minerals, the country is seeking to increase processing, beneficiation and refining before minerals leave the country.
The objective is to retain more value locally and create stronger links between mining and other parts of the economy.
Under favourable production and commodity-price conditions, combined gold and Minerals Marketing Corporation of Zimbabwe-facilitated mineral export receipts could approach US$12 billion in 2026, according to the figures presented in the mineral industrialisation outlook.
With gold continuing to command strong prices on international markets, Zimbabwe has an opportunity to use the current cycle to strengthen production while accelerating investment in refining and value addition.
The longer-term test, however, will be whether the country can turn high-value mineral exports into jobs, industrial capacity, increased local production and broader economic growth.
Tuesday’s FGR rates underline the strength of the gold market, with producers of higher-purity gold receiving more than US$140 per gram and fire-assayed gold reaching US$141.08 per gram.
Zimbabwe’s ongoing economic reform programme has received a key endorsement after the International Monetary Fund (IMF) confirmed that the Reserve Bank of Zimbabwe (RBZ) met all its quantitative performance targets for the first quarter of 2026.
The IMF carried out its first Staff-Monitored Programme (SMP) review mission in June, focusing on performance up to the end of March.
The review found that the central bank had met all the agreed quantitative targets, while considerable progress had also been made on the structural benchmarks.
“The Reserve Bank satisfactorily met all the agreed quantitative targets and structural benchmarks under the first SMP Review Mission completed for March 31, 2026. The specific quantitative targets under the purview of the Reserve Bank included reserve money, net international reserves and zero lending to government,” the RBZ Governor Dr John Mushayavanhu said in the latest Monetary Policy Statement.
The positive assessment comes as Zimbabwe continues efforts to keep its economic policies on track and strengthen stability in the financial sector.
Under the SMP, Zimbabwe’s performance is assessed against a set of agreed economic targets and policy reforms.
While the programme does not provide financial assistance, it gives the authorities a framework through which progress on economic reforms can be monitored.
The first-quarter assessment means the focus now moves to the second review, covering the three months to the end of June.
The second IMF SMP review mission is scheduled for September, with the RBZ’s internal assessment indicating that performance against the programme targets remains broadly on course.
For the central bank, maintaining this momentum will be important as it works to preserve monetary stability and support confidence in the financial system.
The September review will provide a fresh assessment of whether the progress recorded in the first quarter was sustained through the second quarter and whether outstanding structural reforms have moved forward as expected.
The outcome will also be closely followed by the business community and investors, given the importance of policy consistency and economic stability to investment and business planning.
Zimbabwe has been working to strengthen economic policy credibility amid efforts to contain inflation, maintain exchange-rate stability and improve overall macroeconomic management.
The successful completion of the first review, coupled with the RBZ’s expectation of meeting the second-quarter targets, provides some encouragement that the authorities are maintaining the reform path agreed under the SMP.
However, the September review will ultimately determine whether the second-quarter commitments were achieved and how much further progress has been made on the outstanding structural measures.
Dairibord Holdings (Dairibord) says it is intensifying its regional footprint, deploying a combination of toll manufacturing partnerships and targeted market expansion to diversify its revenue streams and increase foreign currency generation.
The milk processor said regional growth remains a central pillar of its long-term corporate strategy, with expanding operations in South Africa anchoring the push.
This comes as revenue from the group’s South Africa segment grew by 38% to US$0.72 million during the half year ended June 30, 2026 from US$0.52 million, continuing to build scale in the group’s regional operations.
“Regional expansion remains a strategic focus, with continued growth in the Africa segment and the toll manufacturing model supporting efforts to diversify the group’s revenue streams and increase foreign currency earnings,” Dairibord said in its group’s latest financial statement.
Dairibord’s revenue increased by 28% to US$64.32 million in the comparative period, driven primarily by the strong volume recovery and supported by a stable pricing and currency environment.
The group’s exports declined by 30% as product was strategically redirected to meet strong domestic demand across all portfolios, ensuring sustained market availability and supporting local market growth.
The group invested US$3.87 million in capital expenditure during the period, continuing investment in production capacity across the group’s factories.
Consolidated sales volume grew by 26% to 78.3 million litres from 62 million litres in the comparative period last year, while raw milk utilisation was broadly flat at 20.4 million litres.
The groups said performance was strong across all product portfolios. Beverages continue to be the group’s largest volume contributor, accounting for 67% of total volume.
The portfolio delivered a 33% year-on-year increase to 52.8 million litres from 39.6 million litres in the prior year.
All beverage lines recorded growth, with Quench cordial achieving an exceptional 82% increase compared to the prior year.
“Strategic capital investment in capacity expansion at the Simon Mazorodze factory successfully unlocked volume growth in bottled Cascade, driving volume up by 68%,” Dairibord said.
The group said Fun n Fresh and Pfuko Maheu grew by 56% and 43% respectively, with the latter benefiting from capacity expansion at the Chitungwiza plant, which enhanced production capability and product availability.
“Foods delivered the group’s second-highest growth, with sales volume rising 30% to 7.3 million litres. The portfolio’s positive performance was underpinned by firm consumer demand for Bulk Ice Cream, Salad Cream, Yogie Drinking Yoghurt and Yummy Yoghurt, which achieved year-on-year growth of 80%, 72%, 42% and 25%, respectively,” Dairibord said.
Liquid milks grew moderately, up 8% to 18.2 million litres. The group said category expansion was constrained by raw milk supply rather than market demand.
However, Steri Milk achieved 72% year-on-year volume growth, capitalising on the added capacity from the newly commissioned Chipinge facility in December.
On the outlook, Dairibord said the improved stability in inflation and exchange rate experienced during the first half of 2026 is expected to continue into the second half of the year.
The group noted that it remains alert to the risks and cost-push pressures presented by the geopolitical headwinds in the Middle East.
“The group will continue to prioritise capacity expansion, cost discipline and a stable, competitively priced local raw milk supply through its out-grower support programs,” Dairibord said.
