By Advent Shoko | ZiGoats
Zimbabwe’s bank deposits have climbed from approximately US$2 billion in 2017 to US$7 billion in 2026, a development Government says reflects growing confidence in the country’s financial sector and progress in rebuilding the banking system.
The increase represents a more than threefold rise in deposits over nine years, providing a key indicator of the expansion of the formal financial sector under the Second Republic.
However, the growth also comes against the background of Zimbabwe’s long history of currency instability, which severely damaged public confidence in banks and the country’s financial system.
The figures were announced in Harare on Tuesday by Information Minister Zhemu Soda during the 35th Post-Cabinet Media Briefing, following Cabinet’s approval of the Financial Sector Development Strategy (2026–2030).
Presenting the strategy, Soda said Zimbabwe’s financial sector remained safe and sound, supported by adequate capitalisation and low levels of non-performing loans.
He said:
“Key indicators reveal notable progress in the banking sector under the Second Republic, including increased bank deposits from about US$2 billion in 2017 to about US$7 billion in 2026.”
The Government says the new strategy will consolidate these gains while strengthening the financial sector’s ability to mobilise savings, finance businesses and support national development.
Rebuilding confidence after years of banking losses
Zimbabwe’s banking sector has had to recover from a difficult history that left many depositors wary of keeping their money in financial institutions.
Although the hyperinflation crisis around 2008 wiped out the value of savings held in the local currency, another major blow came in 2019 when Government introduced the RTGS dollar.
Under Statutory Instrument 33 of 2019, existing RTGS balances and qualifying US dollar-denominated bank balances were converted into RTGS dollars at a nominal rate of 1:1.
This meant that balances previously held and understood by depositors as US dollars were converted into the new local currency at the same numerical value.
However, the RTGS dollar subsequently depreciated sharply against the US dollar, eroding the purchasing power of converted savings.
For depositors who had accumulated their money in US dollar accounts, the experience reinforced fears that monetary policy changes could wipe out the value of their savings even when their bank balances remained intact on paper.
The experience became an important factor in the public’s reluctance to keep money in local currency accounts and, more broadly, in the formal banking system.
Zimbabwe subsequently introduced several monetary reforms, including the Zimbabwe dollar, before launching the Zimbabwe Gold (ZiG) in April 2024.
The ZiG was introduced as a structured currency backed by foreign currency and precious metal reserves, with the objective of restoring monetary stability.
Although it experienced pressure during its early months, subsequent monetary tightening helped stabilise the exchange rate and reduce inflationary pressures.
The continued dominance of the US dollar, however, shows that currency confidence remains an important consideration for households and businesses.
Informal economy keeps much of the money outside banks
Beyond the country’s monetary history, the structure of Zimbabwe’s economy is another important factor in understanding the growth of bank deposits.
Zimbabwe has a large informal economy in which substantial business activity takes place outside conventional formal structures.
The US dollar has also become deeply embedded in everyday commercial transactions, with the IMF and other international institutions highlighting the country’s high levels of dollarisation.
The World Bank’s 2025 Zimbabwe Economic Update reported that foreign currency accounts accounted for 82.5% of banking deposits in M3 as of July 2025, demonstrating the continued dominance of foreign currency in the banking system.
It also noted that foreign currency deposits increased by 23.6% between January and June 2025.
However, not all money circulating in the economy necessarily passes through banks.
For years, many informal traders and small-scale businesses operated predominantly on a cash basis, receiving payments, paying suppliers and reinvesting their earnings without regularly depositing their money into commercial banks.
This meant that considerable economic activity could take place without a corresponding increase in recorded banking deposits.
The situation is gradually changing as Government intensifies efforts to formalise businesses, improve tax compliance and strengthen the use of registered suppliers and distributors.
Measures requiring manufacturers and formal businesses to transact through registered, tax-compliant entities have increased the incentive for businesses across supply chains to formalise their operations.
As more businesses enter the formal system, maintain records and conduct transactions through recognised financial channels, more money can potentially be captured within the banking sector.
This provides another possible explanation for the growth in deposits, alongside increased economic activity and the wider use of foreign currency banking facilities.
Cheaper banking services could encourage more deposits
Another important development has been the ongoing reforms aimed at reducing the cost of accessing banking services.
For years, Zimbabweans and businesses complained about high bank charges, with customers paying fees for basic services such as checking account balances, depositing cash and withdrawing their own money.
These costs discouraged some people from using formal banking channels, particularly informal traders, small businesses and low-income earners who make frequent, relatively small transactions.
The Reserve Bank of Zimbabwe (RBZ) has since introduced significant changes to make banking more affordable and encourage electronic transactions.
Under the 2026 Monetary Policy Statement, presented by Governor Dr John Mushayavanhu in February, banks were directed to implement a series of fee reductions by 31 March 2026.
The measures include:
- Capping cash withdrawal charges at a maximum of 2% for both US dollar and ZiG withdrawals, down from previous rates of up to 3% to 4%.
- Scrapping account balance enquiry fees across banking halls and mobile banking platforms.
- Removing cash deposit charges for both US dollar and ZiG transactions.
- Capping Point-of-Sale (POS) transaction charges at 1.5%, with no minimum transaction fee.
- Limiting new and replacement bank card charges to cost-recovery levels.
The RBZ also reduced charges on its Real-Time Gross Settlement (RTGS) payment infrastructure.
In addition, Cabinet approved further ease-of-doing-business measures in March, including the removal of account opening charges, monthly maintenance fees for accounts holding less than US$100 and charges on transactions below US$5.
The reforms followed growing concerns that expensive banking services were discouraging financial inclusion and increasing the cost of doing business.
They are also intended to make electronic payments more attractive by reducing the financial penalty customers previously incurred when using banking services.
For a trader who regularly deposits business proceeds, a customer who frequently checks account balances or a worker who withdraws money every month, the removal and reduction of these charges can make a meaningful difference.
More affordable banking could therefore encourage people and businesses to deposit money rather than keep large amounts of cash outside the formal financial system.
The reforms also create an opportunity for banks to benefit from a wider customer and depositor base, rather than relying heavily on transaction fees.
Five-year strategy targets a stronger financial sector
Against this background, Cabinet’s approval of the Financial Sector Development Strategy (2026–2030) represents another step towards strengthening the country’s financial infrastructure.
The strategy covers banking, insurance, pensions and capital markets, with a focus on improving efficiency, strengthening financial stability, expanding financial inclusion and promoting innovation.
It will also seek to deepen capital markets, improve financial literacy and mobilise long-term domestic savings for productive investment.
Soda said:
“A robust and well-developed financial sector becomes critical in the facilitation of economic growth, investment, and job creation.”
He added that the strategy would help create a well-regulated financial system capable of mobilising long-term savings, channelling national savings into productive sectors and supporting sustained economic growth towards Vision 2030.
For Zimbabwe, the importance of a stronger banking sector goes beyond the amount of money held in accounts.
A well-functioning financial system provides businesses with access to credit, supports investment, facilitates payments and helps channel savings towards productive economic activities.
An encouraging shift
The increase in bank deposits from US$2 billion to US$7 billion is an encouraging development for Zimbabwe’s financial sector.
It comes at a time when the country is pursuing monetary stability, reducing the cost of banking, encouraging business formalisation and expanding the use of electronic payment systems.
While the painful history of currency conversions remains an important part of Zimbabwe’s banking story, the current growth should also be viewed in the context of these broader economic and financial sector changes.
The challenge now is to sustain the progress through predictable policies, affordable banking services, stronger depositor protection and a financial system that rewards savings.
If the ongoing reforms succeed, banks could increasingly become an important channel for mobilising domestic resources, financing businesses and supporting investment.
The US$7 billion milestone is therefore more than a banking statistic. It provides an encouraging starting point for Government’s ambition to build a deeper, more inclusive and resilient financial sector.
Leave a Reply