Chairman’s Statement
Operating Environment:
The operating environment during the period under review remained relatively stable, although global headwinds continued to weigh on economic activity. Heightened US policy uncertainty, combined with ongoing geopolitical and trade tensions, dampened global growth prospects.
In Zimbabwe, the economy grew by 6.6% in 2025, underpinned by strong performances in the agricultural and mining sectors. During the 2024/25 agriculture season, good performance was recorded in wheat and maize crops, while tobacco output reached a historic high of over 350 million kilograms. In mining, gold output surged by 28% in 2025, rising to 46.70 tonnes from 36.48 tonnes in 2024.
The official exchange rate remained largely stable, depreciating by 0.7% for the full year, from US$1: ZWG25.7985 on 1 January 2025 to US$1: ZWG25.9807 on 31 December 2025. This relative stability reflects the Reserve Bank of Zimbabwe’s (RBZ) tight monetary policy stance, with the bank policy rate maintained at 35% throughout 2025. Statutory reserve requirements also remained unchanged at 30% for demand and call deposits and 15% for savings and time deposits for both foreign and local currency deposits. While these measures supported currency stability, they also constrained credit growth, limiting the banks’ lending capacity.
Inflationary pressures moderated over the course of the year. Annual weighted inflation fell from 42.7% in January 2025 to 13.3% in December 2025, with monthly weighted inflation averaging 1.1% across the year. For ZWG inflation, annual levels spiked to a peak of 95.8% in July 2025, before easing significantly to 15% by December 2025. This decline reflected tighter liquidity management and improved currency stability. Monthly ZWG inflation slowed sharply in the final quarter, averaging below 1%. Regarding USD inflation, annual rates remained relatively contained, easing from 14.4% in mid-2025 to 12.4% by December 2025. This was supported by stronger export earnings and steady foreign currency reserves, which contributed to maintaining price stability in the USD economy.
Stable macroeconomic conditions also encouraged greater use of the ZWG currency, with its share of National Payment System electronic transactions increasing to between 30% and 40% of total transactions by December 2025.
Group Performance:
Despite the challenging environment, the Group’s operations remained profitable, posting a Profit after Tax (PAT) of ZWG0.679 billion compared to the ZWG 1.042 billion restated profit, in 2024. The decline in profit was largely impacted by a drop in Exchange gains as a result of stabilisation of ZWG exchange rates. However, I am pleased to advise that maintainable earnings (excluding unrealised Exchange Gains and Fair Values) improved from a loss of (ZWG0.292) billion in 2024 to a positive position of ZWG0.073 billion as the Group placed more reliance on revenues from its core business. The Business also recorded increased operating costs due to the staff rationalisation exercise carried out during the year.
Capital Requirements:
The Group remains committed to maintaining robust capital adequacy. As at 31 December 2025, all the Group companies were in compliance with the prescribed minimum capital requirements. The Group made a resolution to surrender the Building Society’s banking operating licence to the Reserve Bank of Zimbabwe (RBZ) in a bid to optimise capital and address the shortfall at Building Society. The Reserve Bank of Zimbabwe approved and cancelled the license on 19 December 2025. Subsequent to year end, the Group has appointed the Depositors Protection Commission as the liquidator in compliance with regulation, who will be managing the winding down of the Society’s operations and distribution of assets.
Dividends:
The Board has declared a final dividend of USD0.84 cents per share for the year ended 31 December 2025. A separate announcement with further details will be published in due course.
Strategy:
The Group’s five-year strategic plan for 2021-2025 concluded at the end of the year, and the Group has crafted another five-year strategic plan which will run from 2026-2030. Building on the base established thus far, this strategy focuses on attaining sustainable business growth and market expansion whilst creating happy people.
Directorate:
Mrs Emmah N Mungoni resigned from the ZB Financial Holdings Board on 30 June 2025. On behalf of the Board and Management, I extend my gratitude for her contributions and appreciate her for her distinguished service to the Group as both Director and Chief Financial Officer. I wish her success in her future endeavours.
Mrs Letwin Mawire was appointed as the Chief Financial Officer and Executive Director of ZB Financial Holdings Limited Board with effect from 09 October 2025. We look forward to her invaluable contribution towards the Group’s continued success.
Mr. Peter M.V. Wood retired by rotation at the Annual General Meeting held on 27 June 2025, and being eligible, did not offer himself for re-election. The Board, Management, and staff would like to thank Mr. Peter M.V. Wood for his dedicated service and commitment to ZB Financial Holdings Limited. The Board wishes him well for the future.
Outlook:
Looking ahead, Zimbabwe’s economy is projected to register positive growth of 5.0% in 2026 according to the World Bank. This expansion is expected to be driven largely by strong agricultural performance, supported by anticipated La Niña weather conditions and increased investment in high-value crops such as wheat and horticulture. Developments in the mining sector are likely to be mixed: while gold production should benefit from persistently high global prices, demand for other minerals—particularly Platinum Group Metals (PGMs)—may remain subdued amid weaker global industrial activity. Other key sectors, including manufacturing, tourism, and services, are forecast to record moderate growth, underpinned by a relatively stable macroeconomic environment. Despite this outlook, downside risks remain. Domestic structural constraints, including foreign currency shortages, energy supply challenges, and infrastructure gaps, may weigh on economic expansion. These risks are compounded by global headwinds, notably geopolitical tensions and heightened trade uncertainty.
On the policy front, the Reserve Bank of Zimbabwe (RBZ) is expected to maintain a cautious stance, skewed towards tight monetary policy aimed at preserving macroeconomic stability. Likewise, fiscal policy is also anticipated to remain anchored on supporting price and currency stability. However, the need to balance between stability and growth may see policymakers recalibrating policies to avoid constraining private sector investment and overall economic growth. Furthermore, de-dollarization is increasingly becoming a realistic prospect, anticipated to be implemented anytime in line with the Central Bank’s new policy to base the transition not on a specific date (2030), but on the attainment of certain monetary conditions particularly exchange rate and inflation stability.
Against this backdrop, the Group will continue to support Government in advancing Vision 2030, with a particular focus on strengthening productive sectors of the economy and promoting greater financial inclusion.
Conclusion:
I extend my appreciation and gratitude to our valued customers and all other key stakeholders, without whom the Group would not have been able to sustain its operations. Furthermore, I remain grateful to Board colleagues, Management and Staff, whose collective contributions enabled the ZBFH Group to attain this performance for the financial year ended 31 December 2025. Despite the challenges posed by the operating environment, our combined interventions and inputs have ensured that the Group continues to maintain its strong position.
A. Makamure
(Chairman)
30 March 2026
Related Download
ZBFH Audited Abridged Financial Results for the year ended 31 December 2025.pdf
