Old Mutual Zimbabwe Advocates for Sustained Economic Growth Through Savings Culture
In a recent discussion led by Old Mutual Zimbabwe, industry leaders highlighted the importance of sustaining the current macroeconomic stability for fostering a robust savings culture that can significantly finance essential infrastructure projects. With the introduction of the new currency, the Zimbabwe Gold (ZiG), in 2024, the nation has been experiencing relative economic stability that has enhanced business forecasting and pricing strategies.
The stability in prices, low inflation, and a steady exchange rate are seen as key results of prudent monetary and fiscal policies, allowing businesses to plan with greater confidence. Mr. Constantine Chikosi, chairperson of Old Mutual Zimbabwe, shared insights during a media engagement last week emphasizing that while inflation remains present, it has shown a downward trend alongside a stabilized exchange rate since the launch of the ZiG. “This is encouraging as it enhances our ability to mobilize savings, which are critical for funding infrastructure development,” he stated.
Old Mutual’s approach underscores the necessity for Zimbabwe to create its own financial resources to support infrastructure projects. Unfortunately, the banking sector currently faces challenges, particularly in generating long-term funding essential for growth, especially influencing the mortgage industry adversely. Mortgage financing, which is pivotal for home ownership and real estate development, remains limited without adequate long-term deposits.
Moreover, Mr. Chikosi urged for ongoing trust-building within the financial services sector, stressing that predictable policies and a clear regulatory framework are essential for what he calls “business predictability.” “Without this predictability, risk escalates, inevitably raising the cost of capital,” he warned. Simplifying the business licensing process has also emerged as a crucial objective, aimed at diminishing operational costs and streamlining regulatory compliance.
The government’s initiative to review business licenses and associated fees seeks to attract more investments into Zimbabwe, a move the financial sector is advocating for vigorously. In line with this, Samuel Matsekete, group CEO of Old Mutual Zimbabwe, pointed out that fostering formality in the economy not only benefits the financial services sector but also has long-term implications for economic inclusivity.
As Zimbabwe navigates this phase of economic transformation, the collaborative efforts of both the public and private sectors will be vital. Innovation and supportive policies will be crucial to drive a vibrant financial ecosystem that reflects inclusivity and encourages investment in future growth.
This push towards a healthier savings culture and regulatory improvements positions Zimbabwe on a pathway of sustainable economic development, promising an optimistic outlook for its citizens and businesses alike.
Tags: #Zimbabwe #BusinessNews #Economy #Finance #Investment #OldMutualZimbabwe #InfrastructureDevelopment
