Unlocking Opportunities Amid Economic Shifts: How SMEs & NGOs Can Navigate the 2025 Monetary Policy Statement

The Reserve Bank of Zimbabwe (RBZ) recently released the 2025 Monetary Policy Statement (MPS), outlining key financial measures aimed at ensuring price stability, exchange rate stability, and sustainable economic growth. These measures have far-reaching implications for Small and Medium Enterprises (SMEs) and Non-Governmental Organizations (NGOs). In this edition, we break down the key takeaways, discuss the potential impact on your organization, and—most importantly—show you how to turn challenges into opportunities.

Key Highlights of the 2025 Monetary Policy Statement

✅ Tighter Monetary Policy Stance: The RBZ will maintain a tight monetary policy to curb inflation and stabilize the exchange rate.

✅ Increased Foreign Currency Retention Threshold: Exporters must now surrender 30% of their forex earnings, up from 25%.

✅ New US Dollar Denominated Deposit Facility (USDDDF): A safe investment option for surplus forex earnings with flexible ZiG withdrawals.

✅ Interest Rate Adjustments: The bank policy rate remains at 35% per annum, affecting borrowing costs.

✅ Push for Digital Transactions: Businesses must offer digital payment options like POS devices and mobile banking.

✅ Boost for Productive Sectors: The Targeted Finance Facility (TFF) provides much-needed liquidity to key business sectors.

What This Means for SMEs – Challenges & Opportunities

🚨 Challenges:

• Higher borrowing costs due to increased interest rates.
• Cash flow constraints as liquidity remains tight.
• Forex retention policies may affect pricing and supply chains.

🌟 Opportunities:

• Tap into the TFF Fund: If your business operates in a key sector, apply for low-cost funding under this initiative.
• Strengthen Local Supply Chains: Reduce reliance on imports by sourcing materials locally.
• Go Digital: Take advantage of mandatory digital payment initiatives to expand customer convenience and sales.

📌 ACTION STEP: Schedule a financial review with us to assess how these policy shifts impact your business and what strategies to implement.

How NGOs Can Adapt and Stay Resilient

🚨 Challenges:

• Foreign funding value may fluctuate due to exchange rate adjustments.
• Stricter financial regulations require enhanced compliance.
• Increased operational costs due to economic adjustments.

🌟 Opportunities:

• Strategic Forex Planning: Adopt hedging strategies to protect funding against currency shifts.
• Enhance Financial Compliance: Stay ahead by working with expert advisors to meet new regulatory requirements.
• Optimize Budgets: Identify cost-cutting opportunities without compromising impact.

📌 ACTION STEP: Let’s conduct a financial health check for your NGO and develop a plan to mitigate risks associated with the new monetary landscape.

Your Game Plan for 2025 – Take Control of Your Financial Future

🚀 1. Strengthen Financial Planning: Partner with professionals to adjust your strategies in line with the latest monetary policies.

💼 2. Engage with Banks & Financial Institutions: Discover banking products and funding options that align with your business needs.

📊 3. Optimize Operational Costs: Reduce reliance on high-interest loans and focus on revenue-generating initiatives.

📢 4. Stay Informed & Take Action: Knowledge is power—attend industry briefings and keep up with policy updates.

Final Thoughts – Let’s Take Action Together!

Yes, change can be challenging—but it also creates opportunities for those who adapt quickly. The 2025 Monetary Policy Statement is here, and it’s time to take control of your financial destiny.

📞 Book a consultation with Jerahuni Accounting & Advisory Consultancy today! Let’s develop a customized strategy to help your business or NGO navigate these changes and come out stronger.

🔗 Call or WhatsApp us at +2768 589 7848

📧 Email us at info@jaac.co.za

Your success is our priority—let’s make 2025 a breakthrough year!