Zimbabwe capital outflows surge 91% to US$866m

Zimbabwe's capital outflows nearly doubled in the first half of 2026, with outward remittances surging 91 percent to US$866 million, as companies stepped up external debt repayments and other offshore transactions.

The figures, contained in the Reserve Bank of Zimbabwe (RBZ)'s mid-term monetary policy review, show a sharp increase from the US$453.6 million recorded during the corresponding period last year.

Outward capital remittances accounted for about 12 percent of the US$7.3 billion in foreign payments processed through banks during the six months to June, compared with 9 percent a year earlier.

The increase comes as Zimbabwe seeks to attract foreign direct investment and encourage companies operating in the country to retain and reinvest earnings locally.

The RBZ reported that disinvestments increased by 162.1 percent to US$165.5 million, while foreign investment outflows rose 74.7 percent to US$79.6 million.

External loan repayments were the largest component of the increase, rising 80 percent to US$621 million during the period.

While the surge in outward payments was largely driven by external debt servicing, the sharp increase in disinvestments and foreign investment outflows points to a broader acceleration in the movement of capital offshore.

The development could raise concerns over the ability of Zimbabwe to retain capital for domestic expansion, investment and job creation at a time when policymakers are seeking to deepen investment and strengthen economic growth.

Overall, foreign payments processed through authorised dealers increased 44.9 percent to US$7.3 billion in the first six months of 2026, from US$5 billion during the same period last year.

"During the first six months of 2026, foreign payments through authorised dealers amounted to US$7.3 billion, up by 44.9% from US$5 billion recorded in the same period in 2025," the RBZ said.

Trade-related payments accounted for 81 percent of total foreign payments as at June 30, highlighting Zimbabwe's continued dependence on imported goods and services.

Of the total payments, US$2.7 billion, or 37 percent, was directed towards imports of raw materials, intermediate goods and capital goods.

The country's fuel import bill also contributed significantly to the increase in foreign payments.

According to the RBZ, fuel import payments rose by 64.6 percent, from US$853.5 million in the first half of 2025 to approximately US$1.4 billion during the same period this year.

The central bank attributed part of the increase to higher global energy prices associated with geopolitical tensions in the Middle East.

The latest capital-flow data comes against the backdrop of uncertainty over Zimbabwe's planned transition towards a mono-currency system.

During consultations for the mid-term monetary policy review, stakeholders sought greater clarity on the roadmap towards eventual mono-currency adoption and questioned whether the Reserve Bank would immediately implement the transition once the required conditions precedent had been fulfilled.

"Stakeholders sought clarification regarding the roadmap towards eventual mono-currency adoption and whether the Reserve Bank would transition overnight after fulfilling the conditions precedent," the RBZ said.

Stakeholders also pointed to Statutory Instrument 218 of 2023, which currently limits the multi-currency system to 2030, saying the legislation had created uncertainty around the conditions precedent and the practical milestones required before a transition.

The RBZ sought to reassure the market that the move towards a mono-currency system would not be abrupt, saying the process would be gradual and determined by economic conditions.

"The Reserve Bank allayed fears and assured the stakeholders that the roadmap would be market driven and the Reserve Bank will continue to prioritise transparent communication on the CPs," the central bank said.

The RBZ also encouraged market participants to independently assess and publish their own evaluations of the conditions required for the transition.

"The Reserve Bank encouraged the market to make and publish its own assessment of the CPs. The Reserve Bank advised that it would liaise with Treasury to facilitate repeal of SI 218," it said.

The central bank further said banks had confirmed that they were issuing loans extending beyond 2030, while foreign-currency-denominated contractual obligations would remain payable in the currency in which they were originally denominated.

"The Reserve Bank advised that banks had confirmed they were issuing loans beyond 2030. In addition, the Reserve Bank clarified that all foreign currency denominated contracts will remain payable in the currency of origination."

The developments underline the complex monetary and capital-flow environment facing Zimbabwe as authorities attempt to balance exchange-rate stability, foreign investment, external debt obligations and the long-term transition towards a mono-currency regime.