Lawyer and political activist Fadzayi Mahere has dismissed the Reserve Bank of Zimbabwe’s (RBZ) claim that achieving single-digit inflation in January 2026 is a major milestone.
On Tuesday, 3 February, the RBZ Board of Directors praised central bank staff for the achievement, saying it ends more than three decades of persistent high inflation, noting that the last time Zimbabwe recorded single-digit inflation in local currency was over 30 years ago. Part of the statement reads:
“The milestone achievement underscores the willpower of His Excellency, The President of the Republic of Zimbabwe, Dr E.D. Mnangagwa, in supporting the Governor and his Team in implementing a battery of bold and prudent monetary policy measures key in anchoring the disinflation programme.
“Precisely, the introduction of the Zimbabwe Gold (ZiG), which is backed by foreign currency reserves, particularly gold and other precious minerals, has laid a strong foundation for lasting price, currency and exchange rate stability.”
Responding to the RBZ statement, Mahere said the exchange rate, currently around US$1 to ZiG 26, is “artificial,” adding that ruling party benefactor Wicknell Chivayo does not even use the ZiG. Said Mahere:
“You fix an artificial exchange rate on a currency nobody, even your besties like [Wicknell Chivayo] wants to use, then call that stability?
“The economy is not stable. 49% of the population is living in extreme poverty.
“VAT has gone up, pushing prices through the roof. The cost of public transport has doubled.
“Teachers, doctors, nurses, civil servants and professors are all earning less than US$300. This cannot even pay the fees for a decent nursery school.
“Most of the population is suffering from poverty and can barely afford one decent meal a day, let alone the recommended nutritious three.
“You buy yourselves private jets, fancy cars and build mansions then want to force us to believe the economy is working. It’s not. It’s broken.
“That’s why [ZANU PF] supporters stampede and almost kill each other for a cheap food hamper that they scramble for during working hours where they should be in employment.”
Also responding to the RBZ statement, X user Bla B said that when a central bank publicly praises itself for inflation outcomes while attributing those results to the Head of State, it risks giving the impression that it is not functioning as an independent monetary authority. He added:
“Central bank credibility rests heavily on institutional autonomy, technical decision-making, and a clear separation from political influence.
“Blurring that line can weaken market confidence, particularly in economies where monetary stability has historically been fragile.
“Moreover, the recent decline in inflation, as we have argued in recent weeks, may not necessarily reflect underlying structural strength or policy success alone.
“It could instead be the result of liquidity-induced demand compression, a situation in which tight money supply conditions, constrained credit, and limited disposable income suppress consumer and business spending.
“In such an environment, prices stabilise not because productivity or supply capacity has improved, but because economic activity is subdued.
“While this can temporarily reduce inflationary pressure, it may also signal weak demand, slow growth, and financial strain in the real economy.”
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