RBZ disburses ZiG350 million to key sectors
The RBZ announced it has disbursed ZiG350 million under its Targeted Finance Facility (TFF) to support key sectors of the economy, primarily manufacturing and agriculture, which accounted for 44.82 percent and 34.73 percent of allocations, respectively.
The TFF was introduced in February 2025 to ease liquidity challenges arising from the RBZ's stringent monetary policy aimed at curbing inflation and speculative market behaviour. The facility, funded by banks' statutory reserves, seeks to maintain credit flows to productive sectors without increasing the money supply.
Banks are required to conduct thorough due diligence to ensure that only genuinely productive activities benefit from the facility. Loans under the TFF have a maximum tenure of 270 days and carry a maximum interest rate of 30 percent per annum.
The RBZ said the TFF is aligned with Zimbabwe's projected 6 percent economic growth in 2025 by ensuring sectors critical to economic development - agriculture, manufacturing, and mining - have access to affordable working capital.
The facility also aims to rebalance liquidity within the banking system, redistributing excess liquidity from some banks to those better positioned to lend into the productive economy.
With robust forex reserves, prudent monetary policies, and targeted financial interventions through the TFF, analysts believe Zimbabwe is better positioned to stabilise its currency, boost investor confidence, and sustain economic recovery.
"The combination of growing reserves, a managed currency, and directed credit facilities positions Zimbabwe well for macroeconomic stability in the medium term," said Kanyenze.
