Prosper Ndlovu
Bulawayo Bureau
CONSISTENT implementation of macro-economic and sectoral reforms has set the economy on accelerated and inclusive growth driven by higher productivity in major sectors, leapfrogging Zimbabwe above several regional peers amid resilience to global headwinds, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
Excluding the Covid-19 pandemic and drought years, Zimbabwe’s economy has recorded an average annual growth of 6,3 percent over the past seven years (5,5 percent inclusive of drought year 2024), according to official Treasury records.
In cumulative terms, Zimbabwe’s Gross Domestic Product, a standard measure of the size of a country’s economy, increased by about 31,5 percent since 2018, surpassing the National Development Strategy (NDS1-2021-2025) targeted annual growth of 5 percent.
This year, the Treasury has projected an average 6,6 percent growth, compared to Southern Africa’s average of 2,8 percent, from the initial estimate of 6 percent, the fifth consecutive growth since the pandemic years.
On one hand regional peers such as Malawi, for instance, are projected to record 3,5 percent growth this year, Mozambique 2,5 percent, Botswana negative 0,4 percent, Kenya 4,8 percent, Zambia 6,2 percent, Namibia 3,8 percent, Madagascar 3,8 percent and Eswatini 5,1 percent, said Prof Ncube.
Zimbabwe’s nominal GDP is projected to increase to US$52,3 billion in 2025, rising from the US$44,4 billion recorded in 2023, a recent ZIMSTATS economic census has affirmed.
The regional statistics outlook suggest that, Zimbabwe’s economy is much bigger than Zambia (US$28,8 billion), Namibia (US$14,2 billion), Mozambique (US$23,8 billion), Mauritius (US$15,5 billion), Malawi (US$14 billion) and Botswana (US$19,4 billion).
“Zimbabwe’s economy is now bigger than some of its neighbours in the region,” said Prof Ncube in his “State of the economy report” presented to delegates at the just ended Zanu PF Annual National People’s Conference in Mutare.
“Real GDP growth in Zimbabwe is projected at 6,6 percent in 2025, the fastest in the region. Growth for 2025 in the Southern Africa Development Community (SADC) is projected to average 2,8 percent this year.
“Zimbabwe’s growth is driven by the following — economic reforms, improved fiscal management and a rebound in key sectors such as manufacturing, agribusiness and financial services post the El Niño-induced drought, which affected a significant part of the region in 2024.”
Prof Ncube, who is also Zanu PF Deputy Treasurer General, said macro-economic reforms of the past seven years, implemented through the Transitional Stabilisation Programme, the NDS1 and the ongoing ease of doing business reforms, have laid a solid foundation for sustainable, inclusive growth and changing lives as Zimbabwe marches towards Vision 2030.
“Over the past seven years, our economy has faced multilayered disruptions — Covid-19 pandemic, supply chain disruptions, geo-political tensions, elevated United States protectionist policies and climate-induced EL Niño drought,” he said.
However, under the Second Republic led by President Mnangagwa, Prof Ncube said consistent implementation of macro-economic and sectoral reforms has laid a solid foundation “for strong inclusive growth, structural transformation and resilience”, which has led to improved livelihoods of the generality of Zimbabweans.
“The economy is delivering on strong economic growth, food security, macro-economic stability, new infrastructure (roads, dams, etc), jobs and employment and mining investment, etc.”
Prof Ncube said the major contributors to GDP growth in 2024 were manufacturing (15,3 percent), mining and quarrying (14,5 percent), wholesale and retail (11,9 percent), finance and insurance (10,8 percent), agriculture (9,3 percent), education (4,2 percent) and transport/logistics and storage (3,3 percent).
He said the agriculture sector has grown from a US$5,6 billion to a US$10,3 billion industry in 2025, which accounts for a 73,9 percent increase, while food security at household level increased from 44 percent to 85 percent in 2025, attributable to Pfumvudza/Intwasa Programme and irrigation advancements.
Zimbabwe has also achieved a record-breaking tobacco output of 355 million kg in 2025, representing a cumulative growth of 86,8 percent in volume terms from 190 million recorded in 2018.
Since 2020, Prof Ncube said the national cattle herd has been on an upward trajectory, averaging annual growth of 1,1 percent with the livestock population increasing to 5,74 million in 2024, from 5,2 million in 2017, through prudent dip rehabilitation.
The mining sector, the anchor and engine for the growth of the economy, is one of the largest in terms of contribution to real GDP, and largest in terms of contribution to foreign currency earnings from exports.
The sector’s contribution to GDP has increased from 11,1 percent of GDP in 2018 to the current 14,5 percent with employment/job creation hitting over 60 000 of formally employed in the mining sector and over 1,5 million artisanal miners, contributing over 60 percent of gold production.
The sector has generally recorded an expansion and growth across nearly all sub-sectors gold, platinum, diamonds, coal, lithium, among others.
On macro-economic stability, Prof Ncube said Zimbabwe has scored impressively on price, currency and exchange rate stability, with the ZiG month-on-month inflation rate at -0,2 percent in September 2025, shedding 0,6 percentage points on the August 2025 rate of 0,4 percent.
The USD month-on-month inflation rate for September 2025 also remained unchanged at the previous month’s rate of zero percent.
Major strides are also being recorded in the tourism sector, which is projected to grow by 2,9 percent this year driven by an increase in tourist arrivals and a surge in investments within the hospitality sector.
Zimbabwe was recently ranked as the world’s number one destination of choice for this year by Forbes magazine.
On exports, Prof Ncube said since 2018, merchandise exports have recorded an upward growth trend from US$4,7 billion in 2018 to US$7,8 billion in 2024 (66 percent) mainly driven by gold and tobacco exports.
In response to supporting Government policies, growth in remittances has also remained strong, from US$922 million in 2019 to US$2,58 billion in 2024 and further projected to surpass US$2,72 billion in 2025, representing a cumulative growth of 195 percent between 2019 and 2024.
Prof Ncube said the above milestones were consistent with the ruling party’s resolutions and guidance at the last Congress in 2022 and subsequent National People’s Conferences.
He said the Government is implementing policies towards the attainment of Vision 2030, which seeks to deliver a prosperous and empowered upper middle-income society.
“Pursuant to the foregoing, Government has expanded the implementation of policies, which now include the ease of doing business reforms as part of an integrated strategy for increased economic activity, higher productivity, inclusive growth and structural transformation,” said Prof Ncube.
“Following the implementation of the initial stabilisation measures under the TSP, these reforms were sustained during NDS1 (2021-2025).”
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