ZWMB Half-Year Market Report for SMEs in Zimbabwe

January – June 2025

The first half of 2025 has been a mixed bag for Zimbabwe’s small and medium enterprises (SMEs). While there are signs of recovery in the economy, challenges like expensive loans, foreign currency shortages, and high operating costs continue to put pressure on many businesses. At the same time, new opportunities are opening up in farming, mining, digital commerce, and green energy — and SMEs that are quick to adapt stand to benefit.

As Zimbabwe Women’s Microfinance Bank (ZWMB), we’ve put together this half-year market update to help our SME clients understand the trends, risks, and opportunities shaping the business environment.

The Big Picture

Zimbabwe’s economy is slowly stabilizing. The Reserve Bank of Zimbabwe (RBZ) has been working to control inflation and stabilize the local currency. Prices are more predictable than in past years, but businesses still struggle with foreign exchange (FX) shortages and the high cost of borrowing.

• Loans are expensive: Interest rates remain high, making it difficult for SMEs to get affordable credit.

• Costs are rising: Power cuts, transport delays, and expensive inputs like fuel and packaging continue to eat into profits.

Despite these hurdles, there is hope: farming is bouncing back after the drought, mining continues to attract investment, and digital business is growing fast.

Key Challenges for SMEs

1. Access to finance: Most banks are still hesitant to lend to small businesses without collateral.

2. High borrowing costs: Even when loans are available, interest rates are often too high for SMEs to manage.

3. Infrastructure problems: Load shedding and rising transport costs increase the cost of doing business.

4. Compliance and taxes: Changing rules and new costs add to the strain on SMEs.

Bright Spots & Opportunities

Not everything is gloomy. Some sectors are showing real promise for growth in 2025:

• Agribusiness: Demand for farm produce, processing, and logistics is growing as agriculture recovers.

• Mining supply chains: SMEs that provide goods and services to mines are seeing new opportunities.

• Digital trade: Online sales and electronic payments are expanding quickly, opening doors for retailers and service providers.

• Green energy solutions: Solar and energy-saving products are in demand as businesses look to cut power costs.

• Regional exports: With the right quality and compliance, SMEs can supply neighboring SADC markets.

What ZWMB is Doing for SMEs

At ZWMB, we recognize the hurdles our entrepreneurs face. That’s why we are building solutions tailored to small business needs:

• Short-term working capital loans (3–6 months) to help with stock and supplier payments.

• Invoice financing to give faster access to cash tied up in unpaid invoices.

• Digital merchant accounts to help SMEs collect payments quickly and build transaction history.

• Asset leasing options to allow businesses to get equipment without heavy upfront costs.

• Cash-flow training clinics to help SMEs manage money better and reduce financial stress.

Our Advice to SMEs in 2025

• Focus on cash flow — keep a close eye on stock levels, debtors, and expenses.

• Embrace digital tools — online payments and sales platforms make business faster and more transparent.

• Explore new markets — don’t just depend on local customers; look at supplying bigger companies or exporting regionally.

• Invest in energy solutions — solar and efficiency upgrades can lower running costs.

• Partner with institutions like ZWMB to access affordable finance and business support.

Final Word

2025 is not without challenges, but it also brings opportunities for SMEs that are adaptable, resourceful, and forward-looking. ZWMB remains committed to walking this journey with you, providing the financial tools and knowledge you need to grow.

Together, we can build stronger, more resilient businesses that drive Zimbabwe’s economic recovery.