Africa's Central Bank Governors 2025: Navigating Economic Headwinds

The year 2025 presents a nuanced landscape for central bankers across Africa, as they navigate a complex interplay of global economic shifts, domestic challenges, and burgeoning opportunities. From managing inflation and stabilizing currencies to fostering financial inclusion and embracing digital transformation, the continent's monetary authorities are under intense scrutiny. This report card offers a comprehensive overview of their performance, highlighting key policy decisions, economic indicators, and the pressing issues defining their mandates, painting a picture of both resilience and persistent challenges.

Regional Economic Dynamics and Monetary Policy Responses

Algeria: Navigating Hydrocarbon Dependency

Algeria’s economy, heavily reliant on hydrocarbons, experienced a 3% growth in 2024, yet forecasts predict a slowdown in 2025. This deceleration is primarily attributed to lower natural gas prices and high public spending. Governor Salah Eddine Taleb of the Bank of Algeria (BoA) faces the critical task of maintaining price stability amidst a market dominated by imported consumer goods. Despite a notable drop in inflation from 9.3% in 2023 to 4% last year, concerns about a potential resurgence persist. The BoA's decision to trim its policy rate to 2.75% in August, while aiming to stimulate the economy, contrasts with the IMF's advice to maintain a focus on price stability. A significant challenge for Taleb is the Algerian Dinar's substantial black-market discount, eroding confidence and hindering investment. This situation is exacerbated by a decade-long decline in foreign reserves, plummeting from $200 billion to approximately $60 billion. Efforts to modernize the banking sector through the 2023 Monetary and Banking Law, which promotes online, Islamic, and green finance, are underway. However, these positive developments were overshadowed by Algeria's inclusion on the FATF grey list for money laundering, signaling ongoing regulatory hurdles.

Angola: The Tightrope Walk of Inflation and Stability

Under Governor Manuel António Tiago Dias, the National Bank of Angola (BNA) appears to be grappling with a static approach to monetary policy over the past two years. Primarily focused on inflation containment, the BNA's efforts have seen limited success. An initial series of policy rate hikes, peaking at 19.5% last May, has since plateaued, with the rate currently at 19% despite elevated inflation hovering around 19.5% in July. The reluctance to further raise rates is understandable, given Angola’s projected economic slowdown from 4.4% growth in 2024 to 2.4% in 2025, largely due to weakening global oil demand and low prices. Angola's profound dependence on oil, constituting 94% of exports, 60% of fiscal revenues, and 25% of GDP, renders its economy particularly vulnerable to external shocks. Beyond monetary policy, the BNA faces criticism for its oversight of a fragile banking sector, marked by "unsafe and unsound practices," distressed major banks, soaring government debt exposure, and a surge in non-performing loans (NPLs).

Bank of Central African States (BEAC): Navigating External Pressures

The Bank of Central African States (BEAC), led by Governor Yvon Sana Bangui, is currently under intense scrutiny for its foreign exchange regulations, particularly the controversial requirement for international oil companies to deposit $10 billion into BEAC accounts. This policy has drawn sharp criticism, even prompting US lawmakers to propose halting IMF loans to CEMAC member states, primarily due to concerns that the BEAC intends to use these funds to shore up its reserves. While the BEAC has attempted to mitigate tensions by easing dollar transfer rules, the amicable resolution of this dispute remains Bangui’s most significant test. With reserves at $11.3 billion at the end of last year, equivalent to 4.2 months of import cover against an IMF recommendation of five months, the bank's strategy to bolster its reserves is evident. On the monetary front, the BEAC has shown more flexibility, cutting its main policy rate to 4.5% in March, a first since 2021, and maintaining it amidst projections of low inflation (2.8% in 2025). However, the World Bank cautions that a projected average growth of 2.9% in the medium term might be insufficient for significant job creation and poverty reduction in the CEMAC region.

Botswana: Diamond Dependency and Liquidity Challenges

Botswana’s economy is facing its most severe crisis since the 2020 pandemic, characterized by a biting liquidity squeeze. Governor Cornelius Dekop of the Bank of Botswana (BoB) has expressed frustration over skyrocketing borrowing costs, despite the BoB's policy rate being one of Africa's lowest at 1.9%. The nation's overreliance on the mining sector, specifically diamond exports, which contribute 30% of revenues and 75% of foreign exchange receipts, has led to a projected 0.4% contraction in 2025 amidst a prolonged downturn in the global diamond market. This has severely impacted government revenues and overall economic activity. With foreign reserves plummeting to record lows of $3.6 billion in April, the BoB has limited scope for stimulating the economy. While maintaining an accommodative monetary policy stance with the rate unchanged at 1.9% for the sixth consecutive meeting, the central bank deems this appropriate given that inflation has fallen to 1.1% in July, well below its target range of 3% to 6%.

Central Bank of West African States (BCEAO): Innovation Amidst Tranquility

The West African Economic and Monetary Union (WAEMU) is enjoying a period of relative calm, largely attributed to the strategic leadership of BCEAO Governor Jean-Claude Kassi Brou. Despite political tensions and threats from certain member states regarding the CFA franc, the union remains cohesive. The BCEAO is actively pursuing innovation to strengthen this bond, exemplified by the launch of the Interoperable Instant Payment System Platform (PI-SPI) on September 30. This new system facilitates real-time fund transfers, modernizing WAEMU's financial infrastructure and complementing the bank’s efforts to license more fintechs for digital payment services. Furthermore, the BCEAO is progressing with its digital currency, the e-CFA, which is expected to further solidify the CFA franc's standing. Sound macroeconomic fundamentals provide the BCEAO with ample room for policy maneuvers, leading to a 25-basis-point cut in its main lending rate to 3.25% in June. With inflation projected to average 2.2% in 2025 (down from 3.5% in 2024) and GDP growth anticipated at 6.4%, driven by extractive industries and agriculture, the BCEAO’s innovative approach appears well-supported.

Egypt: Resurgence Through Bold Reforms

Egypt's economy is experiencing a significant uplift, with GDP growth projected to exceed 4% in 2025, a substantial improvement from 2.4% in 2024. Governor Hassan Abdalla of the Central Bank of Egypt (CBE) has been instrumental in this recovery, particularly through the courageous decision to float the pound in March 2024. Despite a 40% devaluation, this move successfully narrowed the black market gap, stabilized the exchange rate, and re-instilled investor confidence. Controlling inflation remains a paramount concern in a nation of over 110 million people, where a third of the population lives below the poverty line. Inflation has steadily decreased to 28.3% last year (from 33.9% in 2023), with the CBE targeting 15% for the current year. Consequently, Governor Abdalla has cautiously begun easing monetary policy, reducing the lending rate to 23% and the deposit rate to 22% at the end of August. The Egyptian financial sector is robust and expanding, with major banks showing strong profitability and pursuing regional growth in Africa and the GCC. Significant capital market activity, including the sale of 30% of United Bank (the first bank listing in 25 years) and the green light for Emirates NBD to acquire part of Banque du Caire, underscores this dynamism. Digital transformation, particularly focused on financial inclusion, is also a key agenda item for Egypt's demography, alongside a commitment to integrate climate necessities into policy design.

Ethiopia: A Legacy of Transformative Reforms

The recent resignation of National Bank of Ethiopia (NBE) Governor Mamo Mihretu, succeeded by Eyob Tekalign, concludes a period marked by historic and far-reaching macroeconomic reforms. Mihretu's tenure saw significant changes in monetary policy, open market operations, and foreign exchange rules. A landmark achievement was the official commencement of securities trading, including the first-ever listing of government treasury bills on the relaunched Ethiopian Securities Exchange after a 50-year hiatus. The National Bank Rate has proven effective in curbing persistent high inflation that had remained significantly elevated for years. After reaching a historic high of 15% in August of last year, the NBE has kept its benchmark interest rate unchanged, leading to a steady decline in inflation to 13.7% in July (down from 17.2% the same month last year). The central bank expects inflation to fall below 10% in the coming fiscal year, its lowest level in nearly a decade. Crucially, the reform package also included opening the banking sector to foreign institutions, a pivotal move after five decades, allowing international banks to operate subsidiaries, branches, or acquire stakes in local banks, signaling a new era of financial liberalization.

Gambia: Cautious Stability Amidst Growth

Governor Buah Saidy of the Central Bank of The Gambia (CBG) has adopted a notably cautious monetary policy, maintaining the benchmark interest rate at 17% for two consecutive years, with no sign of easing. This conservative stance is primarily driven by the CBG’s ongoing challenge to achieve its desired inflation target, which has fluctuated between single and double digits over the past 12 months. While inflation eased to 7.2% in July (from 10.2% in January), the CBG believes a tight monetary policy remains appropriate to ensure sustained disinflation. This approach has also contributed to the relative stability of the Dalasi, which experienced only a modest 1.7% depreciation in the first quarter, a reassuring sign given the growing economy. The Gambian economy is showing robust growth, fueled by strong remittance inflows ($207.9 million in Q1, with the US accounting for 26.3%) and increased earnings from tourism, services, telecoms, and infrastructure. With foreign reserves at a healthy $508.5 million at the end of May (equivalent to 4.6 months of import cover), the CBG forecasts a significant 6.5% GDP expansion this year, positioning Gambia as one of the world’s fastest-growing economies.

Ghana: Dynamic Policy in Challenging Times

In his initial eight months as governor of the Bank of Ghana (BoG), Johnson Asiama has demonstrated a proactive and determined approach to monetary policy. Beginning with a 100-basis-point hike to 28% in March to combat high inflation (23.1% the previous month), Asiama subsequently presided over a historic 300-basis-point cut to 25% in July, followed by another 350-basis-point reduction to 21.5% in September. These bold adjustments were justified by a series of positive economic developments: inflation plummeted to 12.1% in July (its lowest since December 2021), the Cedi appreciated significantly by 40.7%, and public debt decreased substantially to 43.8% of GDP. The economy responded positively, with a 5.3% GDP expansion in the first quarter, reflecting renewed confidence. However, a persistent challenge for Asiama is the high ratio of non-performing loans (NPLs) in the banking sector, standing at 23.6%, prompting the BoG to issue new regulatory directives to address this concern.

Kenya: A Beacon of Calm Amidst Turbulence

Central Bank of Kenya (CBK) Governor Kamau Thugge embodies stability amidst a politically charged and economically strained environment. Despite heightened political noise, pervasive corruption, and squeezed household budget pressures, Thugge has steadfastly pursued his mandates. The CBK has consistently eased its monetary policy, cutting the benchmark rate in seven consecutive meetings, reaching 9.5% in September from a peak of 13% last year. This accommodative stance is supported by inflation remaining within target, recorded at 4.1% in July, a slight increase from 3.8% the previous month. Kenya’s economic indicators are generally positive, with GDP growing 4.9% in the first quarter and a projected 5.2% expansion for the year. To ensure this growth translates into tangible benefits for citizens, the CBK is actively encouraging banks to increase lending to crucial sectors, leading to a rise in private sector credit from negative 2.9% in January to 3.3% in July. Furthermore, the CBK is strengthening the banking industry by raising new minimum capital requirements for Tier 1 banks to $23.2 million and lifting a decade-long moratorium on new bank licenses, signaling a robust and expanding financial landscape.

Madagascar: Balancing Growth with External Headwinds

Governor Aivo Andrianarivelo of the Central Bank of Madagascar (BFM) has prioritized sustaining the island nation's economic momentum, despite facing a mixed bag of fortunes. After a sluggish start to the year, economic activity rebounded in the second quarter, primarily driven by the tertiary sector, culminating in a 4.3% GDP growth in the first quarter of 2025. However, economic uncertainty looms large, particularly due to the US imposing a 15% tariff on Madagascan goods, rendering the vital textile and vanilla export industries vulnerable and potentially leading to significant job losses, especially in the garments industry. In response, the BFM has adopted a restrictive monetary policy, raising its benchmark interest rate by 150 basis points to 12% in May and maintaining it, with the aim of consolidating declining inflation, which stood at 8.2% in June. The BFM targets an annual average inflation of 8.4%, considering it crucial for macroeconomic stability. Conversely, the local currency, the Ariary, has stabilized after a 6.5% depreciation in 2024, bolstered by increased Foreign Direct Investment (FDI) inflows, which have swelled central bank reserves to $3 billion. The BFM is also actively exploring digital currency, having launched a pilot program for its e-ariary.

Mauritania: Proactive Policy in a Slowing Economy

Mauritania’s economy, while projected to slow to a 4% expansion in 2025 from robust growth of 6.4% in 2023 and 5.2% in 2024, is not causing alarm at the Central Bank of Mauritania (BCM). Governor Mohamed Lemine Ould Dhehbi acknowledges external risks like global uncertainties and regional insecurity but notes that internal macroeconomic fundamentals remain strong. Inflation has consistently stayed within the BCM’s acceptable range, although it increased slightly to 1.3% in July from 0.60% in June. The local currency, the Ouguiya, maintains stability due to ongoing reforms in the foreign exchange market. These stable conditions have afforded the BCM the flexibility to reduce interest rates as it transitions its monetary policy towards interest rate targeting. With two cuts in its policy rate, bringing it from 6.75% to 6.5% in May and then another 50-basis-point cut to 6% in August, the BCM aims to invigorate economic activity, especially in critical sectors such as mining, agriculture, fisheries, and construction. Furthermore, Mauritania anticipates an economic boon from the Greater Tortue Ahmeyim natural gas project. The banking sector is also undergoing reforms, with the BCM imposing fines for prudential regulation breaches and amending laws for the resolution of troubled banks.

Mauritius: Rebuilding Trust Amidst Economic Headwinds

The Bank of Mauritius (BoM) finds itself in a period of intense scrutiny following a leadership change and internal conflicts, with Priscilla Muthoora Thakoor recently appointed as the new governor, commencing her three-year term on September 29. The controversy surrounding her predecessor's resignation, citing "external influence," has cast doubt on the BoM's credibility and, by extension, Mauritius' reputation as an international financial center. This crisis comes at a challenging time for the economy, which is grappling with external shocks, drought, declining tourism and FDI, high public debt (equaling 88% of GDP), and social unrest following a government decision to raise the pension age. Consequently, the BoM projects GDP growth closer to a modest 3%, the lower end of its forecast range. With the key rate held unchanged at 4.5% in August and inflation rising to 3.1% in July (from 2.5% in March), Governor Thakoor faces the formidable task of restoring confidence and steering the economy towards stability and growth.

Morocco: A Pillar of Stability and Innovation

Morocco continues to be an economic powerhouse in North Africa, with GDP projected to expand by 3.8% in 2025. Under Governor Abdellatif Jouahri, Bank Al-Maghrib (BAM) has successfully brought inflation down to approximately 2% from a 2022 peak of 6.7%, effectively restoring price stability. This achievement has enabled BAM to embark on monetary policy easing, with three benchmark rate cuts bringing it to 2.25% by March 2025. The OECD, however, advises continued vigilance against global trade tensions that could pressure prices. Morocco's sustained economic trajectory is underpinned by a clear reform agenda and significant infrastructure investments that have fostered a robust business climate and attracted strong FDI, particularly in aeronautics, agri-food, and textiles. The banking sector demonstrates strong profitability, with a 13.2% increase in net banking income and credit growth at 6%-7%, though a doubling of nonperforming loans (NPLs) to 8.6% suggests a need for a secondary market for NPLs to boost credit performance. BAM is also pioneering digital finance initiatives with the opening of the Morocco Fintech Centre and is a leader in integrating climate risk into its policy design, showcasing a forward-thinking approach to modern banking challenges.

Mozambique: Recovery and Policy Dilemmas

Mozambique's economy is experiencing a steady recovery after a period of political stability following a bitterly disputed election a year ago, with GDP growth projected to average 2.5% in 2025. This positive outlook has provided headroom for policy easing by the Bank of Mozambique (BM). Under Governor Rogério Lucas Zandamela, the central bank has cumulatively cut its key MIMO lending rate by 700 basis points since January 2024, with the latest reduction bringing it 75 basis points lower to 10.25% in July. Despite these cuts, inflation has remained well anchored in the mid-single digits, increasing slightly to 4.7% in August from 3.9% in July. The Metical continues to be one of Africa's most stable currencies, buoyed by natural gas revenues that stood at $91.8 million last year and surging reserves, which reached a four-year high of $3.9 billion in June. Paradoxically, Mozambique is grappling with a severe foreign exchange shortage, prompting President Daniel Chapo to urge the BM to intervene, leading to eased reserve requirements. Adding to the complexities is a tense relationship with the International Monetary Fund, as discussions for a new financing package remain deadlocked after an IMF team completed a visit in late August.

Namibia: Diversification Imperative in a Resource-Rich Economy

Namibia’s new president, Netumbo Nandi-Ndaitwah, has prioritized economic diversification to reduce the nation's heavy reliance on the struggling mining sector. Governor Johannes !Gawaxab of the Bank of Namibia (BoN) highlights the severe impact of falling global diamond prices, which saw revenues plunge 32.9% to $672 million last year from $984 million in 2023. Further pressure comes from a 15% US tariff on Namibian exports, which could adversely impact the BoN's already squeezed foreign reserves, standing at $3.2 billion at the end of July, equivalent to 3.8 months of import cover. While external shocks are beyond his control, !Gawaxab is actively deploying the BoN’s tools to stimulate other sectors including tourism, trade, transport, and communication. The central bank maintains a cautious monetary policy, keeping the repo rate at 6.75% since February after an initial cut. This stance is deemed appropriate to safeguard the Namibian dollar's peg to the South African rand and keep inflation, which has averaged 3.6% this year, under control. Despite these challenges, private-sector credit is showing signs of recovery, increasing to 5.7% in June compared to 4.5% in April, indicating potential for broader economic activity.

Nigeria: Sustaining Momentum Amidst Lingering Challenges

Under Governor Olayemi Cardoso, the Central Bank of Nigeria (CBN) is working to stabilize macroeconomic fundamentals, though not at a pace that fully satisfies its leadership. While the annual inflation rate significantly declined to 20.12% last month (from 33.4% the same month last year), the CBN remains committed to a tight monetary policy. It recently lowered its benchmark rate by 50 basis points to 27% last month, after having held it at 27.5% for three consecutive meetings, aiming to sustain the downward inflationary trend. This prudence is exercised within a booming economy, bolstered by FX market stability, surging remittances (averaging $600 million monthly), increased oil production, and growing non-oil exports. These inflows have remarkably pushed central bank reserves to $40.1 billion in July, representing 9.5 months of import cover. Despite lingering insecurity and a sluggish agricultural sector, Nigeria anticipates 3.4% GDP growth this year and has successfully re-entered global markets with a $2.2 billion eurobond issuance. The CBN is also rigorously overseeing the banking sector, pushing for recapitalization—with at least eight banks having met new minimum core capital requirements—and implementing special supervisory regimes for troubled institutions, including revoking one license.

Rwanda: Navigating Inflationary Pressures with New Leadership

Soraya Hakuziyaremye's appointment as Governor of the National Bank of Rwanda (NBR) in February marks a new chapter, succeeding a long-serving predecessor. Her challenge lies in continuing the tradition of central bank autonomy while addressing rising inflation. After maintaining its policy rate unchanged at 6.5% since last November, the NBR unexpectedly increased it by 25-basis-points to 6.75% in August, a move deemed necessary to keep inflation within its target range, following an uptick to 7.3% in July from 3.8% in February. Rwanda continues to be a global economic outperformer, with 7.8% GDP growth in the first quarter and an International Monetary Fund projection of 7.1% for the year, fueled by agriculture, services, construction, and infrastructure investments. However, the depreciation of the Rwandan franc remains a concern, having lost 16% of its value last year and another 2.96% by the end of June this year. This has resulted in increased informal dollarization, prompting the NBR to ban unauthorized use of foreign currencies in local transactions to curb this trend and stabilize the local currency.

South Africa: A Quest for a New Inflation Paradigm

Governor Lesetja Kganyago of the South African Reserve Bank (SARB) is advocating for a significant revision of the country's inflation target range, proposing a lower limit of 3% (from the current 3% to 6%) to enhance competitiveness. This move, if adopted, could pave the way for reduced interest rates, a stronger rand, and lower borrowing costs, offering a much-needed boost to an economy grappling with paralysis and new external pressures, such as the US's 30% tariff on South African goods in August. With paltry Q1 growth of 0.1% and a projected annual expansion of less than 1%, coupled with record-low business and consumer confidence and significant foreign investor flight (selling $6.2 billion worth of stocks), the economic outlook is challenging. Stress tests have also revealed liquidity shortfalls in several banks. Despite this gloom, the SARB has consistently cut its benchmark lending rate at four consecutive meetings, bringing it to 7% in August, citing moderating inflation (3.5% in July) and a stronger rand, then maintained this rate in September. A positive development is South Africa's anticipated removal from the Financial Action Task Force grey list this month, reflecting successful anti-money laundering and counter-terrorism financing reforms.

Tanzania: Economic Resilience Amidst Political Tensions

Tanzania's economy continues its robust performance, demonstrating resilience even as the nation faces heightened political tensions surrounding its elections. Under Governor Emmanuel Tutuba, the Bank of Tanzania (BoT) has overseen a period of strong GDP growth, reaching 5.5% last year and projected to accelerate to about 6% this year, driven by agriculture, construction, and financial services. This consistent growth, alongside inflation remaining within its target band, has allowed the BoT to initiate monetary easing, cutting its benchmark interest rate by 25-basis-points to 5.75% in June, after leaving it unchanged at 6% for four previous meetings. Inflation averaged 3.2% in the second quarter and 3.3% in July, supporting the central bank's prudent decision. The Tanzanian Shilling maintains its stability, having depreciated at just 0.2% in the year ended in June compared to 12.5% in the 12 months ended in June of last year. The BoT is also actively involved in deepening financial inclusion through agency and digital banking and prohibits the use of foreign currencies for local transactions, safeguarding the integrity of the national currency.

Tunisia: A Deepening Crisis and Eroding Autonomy

Tunisia’s economy is forecast for modest growth of 1.9% in 2025 after a sluggish 1.6% in 2024, yet it remains entangled in a multifaceted crisis encompassing a high fiscal deficit, external funding gaps, persistent inflation, and unemployment. Public debt has escalated dramatically from 67% of GDP to 81% over the past five years. Yet, the authorities refuse to implement the reform agenda needed to unlock international support. Governor Fethi Zouhair Nouri of the Banque Centrale de Tunisie (BCT) has prioritized price stability, with inflation falling to 7% in 2024 from 9.3% in 2023. However, purchasing power remains a significant concern for most Tunisians, prompting a modest policy rate cut from 8% to 7.5% in March. A profound structural challenge is the erosion of central bank independence; Parliament's authorization for the BCT to lend $2.2 billion interest-free to the treasury is viewed by observers as a forced bailout that merely postponed an inevitable financial collapse and damaged investor confidence. President Kais Saied's intention to revise the regulator's mandate permanently further exacerbates these concerns. With international reform efforts stalled and access to global markets virtually cut off, Tunisia's increasing reliance on bilateral aid from wealthy Gulf allies deepens its financial isolation and complicates its path to recovery.

Uganda: Stable Growth Under New Leadership

After serving the Bank of Uganda (BoU) as deputy governor for four years, Michael Atingi-Ego was named governor in February. By and large, Atingi-Ego has kept the BoU’s wheels running smoothly, including shielding the bank from political influence and helping the Ugandan economy continue on a growth trajectory. This year, the government is projecting GDP growth reaching 6.5%. However, elevated uncertainty due to external factors is promoting the BoU to take a cautious monetary course. In August, it maintained its policy rate unchanged at 9.75% for the fourth consecutive meeting as inflation shows signs of upswing. In July, inflation stood at 3.8%, but projections by BoU show it averaging between 4.5% and 4.8% for the current fiscal year. The BoU contends this does not warrant alarm, more so since the Ugandan Shilling remains the most stable currency in Africa, according to the International Monetary Fund. After a sluggish first quarter, Uganda is recording a recovery in private-sector credit and a decline in non-performing loans. Additional good news was the World Bank’s decision to lift a ban on lending to the country, imposed two years ago following enactment of a controversial anti-homosexuality law. However, an ongoing standoff with the IMF over a new financing program presents a lingering challenge.

Zambia: Restoring Kwacha Dominance and Economic Momentum

The Bank of Zambia (BoZ), under Governor Denny H. Kalyalya, is actively working to counteract the dollarization of the economy by crafting new currency regulations aimed at reinstating the Kwacha as the sole legal tender. The Kwacha has shown remarkable recovery, appreciating by 14.4% in the second quarter, largely due to increased foreign exchange inflows and a rebounding economy. A tight monetary policy, characterized by a 50-basis-point hike in the policy interest rate to 14.5% in February (and maintained since), has effectively reduced inflationary pressures, with inflation declining to 13% in July from 14.1% in June. The BoZ's ultimate goal is to steer inflation into its 6%-to-8% target range to sustain the economic recovery. Zambia anticipates accelerated GDP growth of 5.8% this year, up from 4% in 2024, driven by skyrocketing international copper prices, increased tourist numbers, stabilized electricity generation after a period of load shedding, and booming key sectors. However, a slowdown in credit growth, which declined to 12.7% in June from 15.3% in March, disproportionately affecting midsized and small enterprises, remains a concern for the central bank.

Zimbabwe: Ending Hyperinflation, Embracing Digital Currency

Zimbabwe is celebrating the end of its hyperinflationary era, a success largely attributed to the Reserve Bank of Zimbabwe (RBZ) and its stringent monetary policy. Under Governor John Mushayavanhu, the RBZ has maintained its benchmark rate at 35%—the highest in Africa—since September last year, even as annual inflation stood at 95.8% in July, with significant easing projected in the coming months. The RBZ is making bold moves to de-dollarize the economy, setting a 2030 deadline for the gold-backed ZiG to become the sole currency. Banks are being directed to enhance ZiG accessibility through ATMs and branches, leading to a notable increase in its usage within the national payment system, with the proportion of ZiG in electronic transactions rising to 40% in June from 26% in April. The ZiG's stability, supported by consistent foreign exchange inflows from export earnings and remittances, has dramatically boosted central bank reserves, growing over 150% from $285 million in April of last year to over $730 million in June. These stable conditions are positively impacting key sectors such as agriculture, mining, manufacturing, and tourism, contributing to the RBZ’s projection of a robust 6% GDP growth in 2025 compared to 1.7% in 2024.