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We are excited to announce the launch of Nosizo, our new WhatsApp-based Compliance Assistant Chatbot.

✅ What is Nosizo?

Nosizo is a digital tool designed to support Non-Governmental Organisations (NGOs), Civil Society Organisations (CSOs), Community-Based Organisations (CBOs), and even the general public in understanding the regulatory and compliance requirements for organisations operating in Zimbabwe. It provides easy-to-access, up-to-date guidance on legal frameworks, registration processes, reporting requirements, and key policies affecting the civil society sector.

✅ Why Nosizo?

Civil society in Zimbabwe operates in a complex and evolving regulatory environment. Navigating compliance requirements can often be confusing and time-consuming. With Nosizo, you can now access clear, simplified, and reliable information instantly — anytime, anywhere.

✅ What Nosizo Can Help You With:

  1. Guidance on the Private Voluntary Organisations (PVO) Act and Amendment processes
  2. Updates on compliance requirements from regulators, including the Ministry of Public Service, Labour and Social Welfare (MoPSLSW), National Social Security Authority (NSSA), Zimbabwe Revenue Authority (ZIMRA), Financial Intelligence Unit (FIU), National Employment Council for Welfare & Education Institutions (NECWEI) and Postal & Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) among others.
  3. Step-by-step information on registration procedures, reporting timelines, and fees
  4. Tips on strengthening institutional accountability and governance
  5. General FAQs on operating as a CSO/NGO in Zimbabwe

✅ Multilingual Support:

To ensure inclusivity and accessibility, Nosizo is conversant in multiple languages — including English, Shona, and Ndebele — making compliance guidance easier to understand for all stakeholders across Zimbabwe.

✅ How to Access Nosizo:

Simply click this link and start chatting with Nosizo on WhatsApp today!

✅ Example Commands to Try with Nosizo

  1. Hi/Hello/Hey → 👋 Nosizo will greet you and show the main menu.
  2. Register → 📋 “How do I register an NGO in Zimbabwe?”
  3. Fees → 💵 “What are the current PVO registration fees?”
  4. Reports → 🗂️ “When do I need to submit my annual reports?”
  5. PVO Act → 📑 “Tell me about the PVO Amendment Act.”
  6. AML → 🔍 “What does FATF Recommendation 8 mean for NGOs?”
  7. Data → 🔐 “What do NGOs need to comply with under the Cyber & Data Protection Act?”
  8. Tips → 💡 “Share some compliance tips.”
  9. FAQ → ❓ “Show me common NGO compliance questions.”

Contact → 📞 “How can I reach NANGO directly?”

💬 Pro Tip: Anytime you get lost, just type Help.

We believe in empowering civil society through knowledge and innovation. Nosizo is here to make compliance easier, strengthen transparency, and ensure that NGOs and CSOs can continue delivering impact to communities across Zimbabwe.

📲 Start the conversation now and let Nosizo guide you towards compliance made simple!

The Ministry of Public Service, Labour and Social Welfare (MoPSLSW) has officially gazetted the new registration fees for Private Voluntary Organisations (PVOs) through Statutory Instrument (S.I.) 82 of 2025. The regulation, issued under Section 28 of the Private Voluntary Organisations Act [Chapter 17:05], introduces separate registration fees for international and local PVOs.

International PVOs are now required to pay a registration fee of US$250.00, while local PVOs will pay a registration fee of US$150.00, payable in local currency at the prevailing bank rate. What remains unclear is whether the organisations will pay at the point of application submission or once their application documents are reviewed by the registrar. It is also unclear whether the payments will be done by cash only or bank transfers will be permissible. We are also unsure on whether organisations that have submitted their applications prior to the gazette will pay or it shall only apply to organisations that are yet to submit their applications. NANGO shall engage the Registrar’s office to get clarification on these grey areas.

NANGO continues to monitor developments regarding the implementation and the operationalisation of the PVO Amendment Act, advocating for a seamless process that will not inhibit or disrupt the operations of the organisations as they adapt to the new regulatory regime.

To ensure members and stakeholders receive tailored support, NANGO is rolling out Compliance Clinics across all its regional offices, designed to provide practical guidance on registration, compliance requirements, and navigating the evolving regulatory framework. These clinics create a safe and collaborative space where organisations can access expert advice, ask questions, and gain clarity on issues related to the PVO Amendment Act and its implementation.

Additionally, you can now get instant support on PVO registration, compliance matters, and other related queries through the NANGO Compliance Chatbot at +263 78 536 1929. Simply start a chat and our virtual assistant will guide you with the information and resources you need.

We remain committed to ensuring that members, partners, and stakeholders have timely information on regulatory updates. We encourage organisations to take note of these changes and factor them into their compliance planning.

With the 90-day transitional period provided for under the Private Voluntary Organisations (PVO) Amendment Act, 2025, having officially ended on 22 August 2025, we wish to update you on the current status and guide you on the way forward.

NANGO is actively engaging with the regulator, the Ministry of Public Service, Labour and Social Welfare (MoPSLSW), as we await their official communication on the next steps regarding registration and compliance. Please note, you can still submit your application despite that the 90 working days transitional period has lapsed. We therefore encourage all organisations that have not yet done so to finalise and submit their applications without delay, to avoid disruptions to operations.

Checklist for Local NGOs Transitioning to PVOs
If your organisation is in the process of applying for registration, please ensure that you have compiled the following documents:

Need Support? Visit Our Compliance Clinic
NANGO is here to walk with you through this process. For tailored, in-person support, you can access our Compliance Clinics through the following channels:

Regional Offices – Compliance Clinics are also available at all four NANGO Regional Offices to serve members and stakeholders across the country:

📲 For quick support, you can now get instant support on PVO registration, compliance matters, and other related queries through the NANGO Compliance Chatbot at +263 78 536 1929 or Click Here. Simply start a chat and our virtual assistant will guide you with the information and resources you need. You can also reach us via WhatsApp at: +263 712 507 925

On 11 April 2024, the Private Voluntary Organisations (PVO) Amendment Act, 2025, was signed into law, closing a legislative journey that began on 5 November 2021, when the Bill was first gazetted. Now, 82 days later, Civil Society Organisations (CSOs), Trusts, and Community-Based Organisations (CBOs) across Zimbabwe are actively engaging with the transitional requirements and compliance measures introduced by the new law.

The transition period provides a crucial window for organisations—especially pre-existing Trusts and Common Law Universitas—to register as PVOs. However, several systemic, structural, and operational hurdles have emerged, complicating what should ideally be a straightforward compliance process.

This detailed update draws on data collected by NANGO through PVO Sensitisation and Outreach Blitz, which included workshops in Harare, Bulawayo, Gweru, Masvingo, and Mutare, reaching a total of 249 organisations. It captures lived realities on the ground, highlights key observations, and presents priority actions needed for a smooth, inclusive and efficient implementation of the PVO Act.

📊 Snapshot of the Registration Progress
Out of the 249 organisations engaged:

If your organisation has not yet participated in our feedback process, we encourage you to contribute to our ongoing PVO registration tracking efforts by completing this short form:

👉 Click to Fill the Survey

📌 Contextual Realities: Implementation Challenges and Gaps
🧩 Challenges and Observations

From the Regulator’s Side (Supply Side):

  1. ⚠️ Non-standardised Procedures: District Social Development Offices differ in application templates and requirements, including the use of specific newspapers for advert placements despite the clarification from the regulator that organisations are free to choose any press of their choice.
  2. 🏛️ Difficulties in securing Letters of Intent from Local Authorities: CSOs face difficulties securing letters of intent due to confusion between MOUs, clearances, and actual recommendation letters. Some authorities are unaware of their role in the PVO registration process.
  3. 🕓 Delayed Feedback: Several CSOs have gone over 2 months with no feedback after submission.
  4. 👥 Understaffing: In some districts, untrained interns handle applications, resulting in miscommunication and delays.
  5. 💰 Delayed Gazetting of Prescribed Fees: This continues to create uncertainty in budgeting and planning.
  6. ⏳ Conflicting Timeframes: There is confusion between the 90-working-day window and the “3-month” timeframe stated in Section 14(1)(a).
  7. 🧑🏽‍⚖️ Pending Reconstitution of the PVO Board: The delay in setting up the new Board is stalling processes.

From CSOs (Demand Side):

🧰 Resources and Support Offered by NANGO
Frequently Asked Questions (FAQ) Document: Aggregated from Registrar responses and field engagements. 🔗 Access FAQ Here

📝PVO Registration Advisory Note: Step-by-step guidance for CSOs navigating the registration process. 🔗 Download the Advisory Note

PVO Amendment Act, 2025, Fact Sheet: A summary of the key provisions for informational purposes. 🔗 Download the Fact Sheet

🤝 In-Person Support and Referrals:

Our Regional Coordinators are available across the five regions to assist in peer reviewing application documents, provide referrals to legal/technical advisors, and assist with form completion and submission.

🚨 Key Asks and Priority Actions Going Forward
To ensure smooth implementation of the PVO Amendment Act, NANGO recommends the following:

To the Regulator:

To Development Partners:

To Civil Society Organisations:

Today, we proudly join the global community in commemorating World NGO Day 2025 under the theme: “Strength in Solidarity: Celebrating NGOs’ Impact and Building Financial Sustainability.” This aligns with the global theme, “Empowering Grassroots Movements for a Sustainable Future,” reinforcing the need for unity, resilience, and sustainable funding in our sector.

NGOs in Zimbabwe play a critical role in advocating for human rights, delivering essential services, and driving sustainable development. However, many organisations face challenges, including funding uncertainties, restrictive policies, and limited collaboration opportunities.

Call to Action

To strengthen the sector, we call upon:

✅ The Government – to create an enabling environment and recognize civil society’s role in development.

✅ NGOs & CSOs – to collaborate, embrace innovation, and explore diverse funding strategies.

✅ Development Partners & the Private Sector – to support grassroots movements and promote sustainable financing.

This World NGO Day, let’s celebrate our collective achievements and renew our commitment to a stronger, financially sustainable, and impactful civil society.

Read the full press release here: https://mcusercontent.com/b24bb88d91c35613ac9701056/files/508636ae-ff55-40b2-144a-d8933dfb75f8/NANGO_World_NGO_Day_Press_Release_2025.pdf

Private Voluntary Organisations Amendment Bill Passed in Senate.

On 26 November 2024, the Deputy President of the Senate, Hon. Michael Nyambuya, announced that the Private Voluntary Organisations (PVO) Amendment Bill [H.B. 2A, 2024] had been sent back to the Senate for reconsideration due to the omission of amendments previously made by the National Assembly. This was done in terms of Standing Order Number 147. These omissions were identified in the consolidated version of the Bill presented to the Senate.

The Senate resumed its debates on 12 February 2025 after their festive break, and the PVO Amendment Bill reconsideration was one of the business for the day. It went through to the third reading, meaning it shall now be transmitted to the next stage, which is the Presidential assent.

During the recommittal stage, the Minister of Justice, Legal, and Parliamentary Affairs, Hon. Ziyambi Ziyambi, detailed the clauses requiring correction. The omissions primarily involved crucial changes to governance structures, compliance requirements, and penalties related to PVO operations. The following clauses were identified for reconsideration:

The PVO Amendment Bill has significant implications for civil society operations, compliance, and governance in Zimbabwe, making it essential for CSOs and stakeholders to remain engaged in the legislative process. NANGO continues to monitor these developments and will provide further updates as they unfold. For a copy of the revised PVO Amendment Bill [H.B. 2A, 2024], which was presented to the Senate, and a link to the Hansard recording of the Senate proceedings, please refer to the following: Revised PVO Bill and Senate Hansard

NANGO remains steadfast in its commitment to advocating for an enabling environment that supports the growth and sustainability of Civil Society in Zimbabwe. As we continue to monitor the ongoing developments surrounding the PVO Amendment Bill, we affirm our dedication to pushing for a legislative framework that guarantees fundamental freedoms of association, assembly, and expression in line with the Constitution and other international instruments. NANGO will continue to engage with relevant stakeholders, including policymakers and regulators, to ensure that the revised Bill aligns with the principles of good corporate governance and enhances the role of CSOs in contributing to the country’s inclusive governance and sustainable development. Our efforts to secure a robust and supportive legal instrument reflect our unwavering belief in the vital role that CSOs play in advancing human rights, social justice, and development in Zimbabwe.

We are pleased to announce the newly elected National Executive Committee (NEC) management committee of the National Association of Non-Governmental Organisations (NANGO), following the successful National Elective Annual General Meeting (AGM) held on the 12th of December 2024 at Crowne Plaza Hotel in Harare.

The newly elected NEC will serve a three-year term, from January 2025 to December 2027, and is comprised of the following distinguished individuals:

  1. Board Chairperson: Mrs. Pester Siraha, Country Director of Population Services Zimbabwe.
  2. Board Vice Chairperson: Mr. Charles Mazorodze, Executive Director of Gweru Residents Forum.
  3. Board Treasurer: Dr. Kudakwashe Madzeke (PhD), Country Director for Solidarmed.
  4. Board Secretary: Ms. Getrude Chimange, Executive Director of Zimbabwe Community Development Foundation-Trust.
  5. Board Vice Secretary: Mr. Michael Ndiweni, Executive Director for Bulawayo Vendors and Traders Association.

We extend our heartfelt congratulations to the newly elected committee members and wish them a successful and impactful tenure as they steer the organisation towards achieving its mandate of strengthening civil society in Zimbabwe. Their leadership, expertise, and commitment will be instrumental in navigating the evolving operating environment and advancing the collective interests of the NGO sector.

We also take this opportunity to express our sincere gratitude to the outgoing NEC for their dedication, hard work, and the milestones achieved during their term of office.

For any further details or engagement with the new NEC, please do not hesitate to contact the NANGO Secretariat via email at admin@nangozim.org.

Together, we remain committed to promoting an enabling environment for civil society to thrive and contribute to inclusive and sustainable development in Zimbabwe.

Harare, Zimbabwe – 10 December 2024 – The National Association of Non-Governmental Organisations (NANGO) joins the global community today in commemorating Human Rights Day 2024, under the theme “Our Rights, Our Future, Right Now.” This day is a reminder that human rights are not just ideals or aspirations, but essential elements that must be safeguarded and promoted today to ensure a better tomorrow for all. Human rights are the foundation for a just, inclusive, and sustainable society and are vital in securing the future of all citizens.

In Zimbabwe, the protection and promotion of human rights continue to face significant challenges. According to the CIVICUS Monitor, the country’s civic space remains “repressed,” with restrictions on fundamental freedoms such as freedom of expression, assembly, and association. Civil Society Organisations (CSOs) continue to face legal and extrajudicial harassment, and journalists, human rights defenders, and activists are often targeted for their work advocating for the rights of citizens. These systemic constraints limit the participation of citizens in decision-making processes, which undermines the democratic process and denies individuals their basic rights.

Freedom of expression, assembly, and association are cornerstones of a vibrant civil society. These rights empower citizens to speak out against injustices, organize collectively to demand accountability and advocate for policies that reflect the needs of their communities. For civil society in Zimbabwe, these freedoms are essential for fostering dialogue, conducting advocacy, and holding the government accountable for its human rights obligations.

Freedom of expression enables individuals and organisations to voice concerns, share information, and raise awareness about societal issues without fear of censorship or reprisal. It ensures that diverse perspectives are heard, contributing to inclusive decision-making processes. Similarly, the right to peaceful assembly allows citizens and CSOs to self-organize and discuss matters of social justice and human rights. Freedom of association is critical for CSOs to form coalitions, mobilize resources, and collaborate effectively to address complex issues such as poverty, inequality, and corruption.

However, these fundamental rights are increasingly under threat in Zimbabwe. Civil society continues to face restrictions that undermine its ability to operate effectively. The Private Voluntary Organizations (PVO) Amendment Bill, 2024, imposes stringent regulations on the civil society sector, severely limiting their ability to function independently and autonomously. Provisions in the bill grant the government broad discretionary powers to interfere in the governance, operations, and funding of CSOs.

Human Rights in Zimbabwe: The Path Forward
To safeguard the role of civil society and ensure the realization of the theme “Our Rights, Our Future, Right Now,” NANGO urges the government to promulgate laws and instruments that align with constitutional and international human rights standards. Civil Society should not be seen as an adversary but as a critical partner in advancing development, good governance, democracy, and human rights.

NANGO emphasizes that freedom of expression, assembly, and association are not privileges but rights enshrined in Zimbabwe’s Constitution. These rights are integral to the ability of civil society to serve communities, advocate for justice, and promote good governance. Restricting these freedoms not only weakens civil society but also undermines the broader socio-economic and political stability of the nation.

As we commemorate Human Rights Day 2024, we urge all stakeholders to reaffirm their commitment to protecting and promoting these fundamental rights. The government, civil society, development partners, and citizens must work collectively to create an environment where freedoms are respected, and civil society can thrive. Only then can we truly realize the vision of a just and equitable future where “Our Rights, Our Future, Right Now” is more than a theme but a reality for all Zimbabweans.

Recommendations for Human Rights Progress:
In line with the theme “Our Rights, Our Future, Right Now,” NANGO offers the following recommendations to the Government of Zimbabwe, civil society, development partners, and citizens to ensure that human rights are prioritized and protected:

To the Government of Zimbabwe:

To CSOs:

As we commemorate Human Rights Day 2024, NANGO urges all Zimbabweans to reflect on the importance of upholding human rights in every aspect of life. The theme “Our Rights, Our Future, Right Now” underscores the urgency of addressing human rights challenges and promoting the well-being of every citizen today, so that a better tomorrow can be realized. The government, civil society, development partners, and citizens must work together to ensure that human rights are protected and advanced for all people in Zimbabwe.

We Are NANGO
NANGO is a voluntary coordinating body of Non-Governmental Organisations in Zimbabwe, dedicated to creating a conducive environment for NGOs to operate effectively and contribute to national development. NANGO provides a platform for collective action and advocacy, amplifying the voices of its members and promoting sustainable development. Through its efforts, NANGO aims to empower civil society and foster resilient communities that thrive in a democratic and inclusive Zimbabwe.

Contact Us
For media enquiries, please contact NANGO Communications via email at info@nangozim.org. Feel free to visit our website and read more about our work at www.nangozim.org.

The National Association of Non-Governmental Organisations (NANGO) joins the rest of the world in commemorating the 16 days of activism under the global theme “Towards 30 years of the Beijing Declaration and Platform for Action: UNiTE! Invest to Stop Violence Against Girls and Women! #NoExcuse.” The 16 Days of Activism against Gender-based Violence is an annual international campaign that starts on 25 November and ends on 10 December. Gender-based violence remains a global pandemic that has ramifications running deeper than other social endemics. The results have seen many women and girls being killed, maimed, or scared both physically and psychologically for life.

The 16 Days of Activism is an annual event that brings together individuals, organisations, and governments worldwide to raise awareness and take action to end GBV. It is a time to stand in solidarity with survivors, advocate for effective policies, and work toward eliminating all forms of violence against women and girls. This year, the theme is particularly significant as it marks the 30th anniversary of the Beijing Declaration and Platform for Action, which was a landmark agreement that committed countries to advancing gender equality and empowering women and girls. You may download the Declaration here.

The ongoing El Niño-induced drought currently affecting Zimbabwe has significantly exacerbated the prevalence of gender-based violence in many communities. As the drought continues to impact food security and access to clean water, many families face increased stress and economic hardship. In such challenging circumstances, women and girls often bear the brunt of the crisis, with rising tensions within households leading to higher incidences of domestic violence. Furthermore, the scarcity of resources has led to increased rates of transactional sex, exploitation, and early marriages as families struggle to survive. This situation compounds the vulnerability of women and girls, making them more susceptible to various forms of GBV. The strain on community resources also hampers access to support services, leaving survivors of GBV with fewer options for assistance. As we continue to respond to the climate crisis, it is crucial that we also address its intersection with gender-based violence and ensure that climate adaptation strategies are gender-sensitive, providing support and protection to those most affected. This campaign is a call to action to raise awareness and push for investments in prevention, support services for survivors, and legal frameworks that hold perpetrators accountable. We believe that an investment in the safety and empowerment of women and girls is an investment in the future of our nation.

The theme, “UNiTE! Invest to Stop Violence Against Girls and Women! #NoExcuse,” underscores the importance of concerted action at all levels. It calls for increased funding, resources, and policy initiatives that prioritize the safety and rights of women and girls. There is no excuse for GBV, and it is our collective responsibility to ensure that every woman and girl can live free from violence and discrimination.

NANGO, through its networks and partnerships, is committed to using these 16 Days of Activism to not only raise awareness but also to advocate for the full implementation of the laws and frameworks that protect women and girls from violence. This includes promoting the Domestic Violence Act, the Criminal Law (Codification and Reform) Act, the Trafficking in Persons Act, and other legislative instruments that seek to safeguard women’s rights.

We call upon all NANGO members, partners, and stakeholders to join us in this vital movement. Whether through organising awareness campaigns, supporting survivors, or engaging with local authorities and policymakers, each of us has a role to play in ending GBV. Together, we can make a difference and build a world where women and girls live free from fear and violence.

We encourage all our members and stakeholders to actively participate and show their support in whatever way they can. Social media, community engagement, and public events will play a critical role in raising awareness and generating discussions around this issue. Use the hashtag #NoExcuse to show your commitment to ending gender-based violence and join the conversation globally.

In addition, NANGO will continue to work with its members and partners to ensure that women and girls have access to justice, healthcare, and the support they need to heal and rebuild their lives. We are committed to contributing to the realization of the Beijing Platform for Action’s goal of achieving gender equality and ending violence against women and girls.

We look forward to your continued support and active participation during this critical period and beyond. Together, let’s make the world a better place to be for all.

Let us unite, invest, and act—because there is no excuse for gender-based violence.

The Private Voluntary Organisations (PVO) Amendment Bill H.B.2, 2024, completed its Committee Stage in the National Assembly on the afternoon of September 4, 2024. The Minister of Justice, Legal and Parliamentary Affairs, Honourable Ziyambi Ziyambi, proposed a series of amendments, all of which were adopted by the Committee, while amendments suggested by opposition Members of Parliament were rejected. The Bill has now been referred to the Parliamentary Legal Committee (PLC) to assess its constitutionality considering the adopted changes.

In response, NANGO is collaborating with other CSOs to review the latest version of the Bill, focusing on the substantive amendments that were adopted by the Committee. While this process is underway, we encourage stakeholders to refer to the September 3, 2024, Parliamentary Hansard for a detailed record of the proceedings and debates surrounding the Bill.

NANGO will continue to engage with relevant authorities to advocate for an enabling environment for CSOs and ensure that any legislative measures are aligned with constitutional principles and international human rights standards. We remain committed to safeguarding the space for civil society to operate freely and without undue interference, recognizing the critical role of NGOs in promoting good governance and development in Zimbabwe.

New Directives Introduced for CSOs in Matabeleland South

In a concerning development, government officials in Matabeleland South have introduced new operational guidelines for Non-Governmental Organisations (NGOs), intensifying efforts to exert control over civil society activities. This follows a similar attempt earlier this year, which faced significant pushback from NANGO and other CSOs over concerns related to legality, motivation, and the potential restriction of civic space.

The new directive, communicated via a letter dated August 19, 2024, from Acting Provincial Director of Local Government Services Zacharia Jusa, seeks to enforce strict compliance with a standardized system supposedly aimed at aligning NGO operations with local development goals. However, these guidelines raise serious concerns, as they are not supported by any existing legal or policy framework. This poses significant challenges to the independent and effective operation of CSOs in the province.

The directive outlines extensive requirements, including the submission of 24 registration documents to local authorities, the creation of a District Monitoring and Evaluation Committee, and the submission of detailed monthly financial and programmatic reports. Additionally, NGOs are required to sign Memorandums of Understanding (MOUs) with multiple government offices and hold inception meetings with local stakeholders, including Chiefs and Members of Parliament, before commencing any programs. These requirements impose a heavy administrative burden on CSOs, many of which are already operating with limited staff and resources.

Civil society actors have expressed widespread concern, noting that national laws governing NGO registration and operation do not grant provincial authorities such regulatory powers. The demands from Matabeleland South introduce administrative hurdles that could paralyze operations and hinder vital work supporting vulnerable communities.

NANGO is actively engaging with provincial authorities to voice CSOs’ concerns over the legality and motivation behind these new requirements. NANGO emphasizes that the resolution to these issues must come from the national level, where ministries and government agencies with the mandate to regulate NGOs can provide clear guidance. Efforts are underway to involve national bodies, including the Ministry of Public Service, Labour, and Social Welfare (MoPSLSW), to ensure that any new regulations comply with legal standards and protect the rights of CSOs to operate freely.

This troubling trend of introducing non-legally grounded directives highlights the need for collective civil society action in advocating for an enabling operational environment. NANGO will continue to monitor developments closely and advocate for a fair and supportive environment for CSOs across Zimbabwe.

2024 Mid-Term Monetary Policy Statement Update

The Reserve Bank of Zimbabwe (RBZ) released its 2024 Mid-Term Monetary Policy Statement on August 30, 2024, presenting several key measures aimed at stabilising the economy amidst persistent challenges such as informalisation and parallel market activity. Notable highlights include the continued tight monetary policy stance and the stability of the structured ZiG currency. While the currency has contributed to relative stability, more efforts are needed to build confidence, especially in the financial sector, and encourage broader use of ZiG across various sectors of the economy.

Key policy adjustments include the RBZ’s intervention in the foreign exchange market, which could reduce reliance on the parallel market by increasing the availability of foreign currency for importers. This intervention is expected to alleviate pressure on businesses and stabilise exchange rates, a critical factor for Zimbabwe’s welfare and development, particularly in the fight against inequality.

The introduction of smaller ZiG denominations, as highlighted in the policy, is an attempt to improve financial inclusion, particularly in rural areas, while addressing pricing issues caused by the lack of small change. Additionally, policies such as exempting small electronic transactions from bank charges aim to ease the financial burden on Micro, Small, and Medium Enterprises (MSMEs). These measures are crucial for boosting formalisation and supporting economic participation.

However, NGOs should remain mindful of potential drawbacks. The policy’s tight liquidity controls, while designed to maintain price stability, could reduce the availability of credit, potentially slowing economic activity. Furthermore, the focus on maintaining high statutory reserves may limit banks’ ability to lend, disproportionately affecting low-income households and small businesses.

Overall, the RBZ’s policy trajectory emphasizes stability, but challenges related to inequality and limited access to credit may persist. Civil society actors should continue to monitor how these measures impact communities, particularly vulnerable groups, and advocate for policies that promote inclusive growth and equitable development.