Lawmakers Advance Bill to Bolster Central Bank Independence

Finance and Economic Planning Minister Yusuf Murangwa told lawmakers the current law, enacted in 2017 and revised in 2021, requires further updates following recent reviews. A 2024 safeguards assessment by the International Monetary Fund identified legal gaps in the framework governing the central bank and recommended reforms to align it with international standards.

At the center of the proposed legislation is a clearer mechanism for recapitalizing the central bank if its capital declines. The draft law would require the government to cover any capital shortfall within six months of receiving a formal request from the bank. Murangwa said such recapitalization would be used only as a last resort to preserve the bank’s financial autonomy and ensure sustainable operations.

The bill also strengthens protections against external interference. It affirms that the bank’s leaders, staff and decision-making bodies must be able to exercise their powers independently. It limits the authority the board of directors can delegate to the governor, specifying that supervisory and oversight responsibilities cannot be transferred.

Lawmakers are considering expanding the board to at least 11 members with expertise in fields such as accounting, risk management, law and technology. To reinforce independence, no more than 30% of board members would be government employees, excluding the governor and deputy governor.

The draft legislation would also grant the central bank authority to impose administrative sanctions for regulatory violations, broaden its mandate in managing foreign exchange reserves and other eligible assets, and establish a formal internal audit function to strengthen oversight and risk management.