HARARE – The Parliament of Zimbabwe’s three-day Pre-Budget Seminar begins today in Bulawayo, setting the stage for comprehensive consultations on the 2026 National Budget. The high-level gathering brings together lawmakers, policymakers, economic experts, and industry stakeholders to shape the country’s next fiscal and development trajectory.
Running under the theme “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030,” the seminar serves as a key platform for aligning national priorities ahead of the formal budget presentation.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube and Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu are expected to lead discussions alongside Cabinet ministers and chairpersons of parliamentary portfolio committees.
The deliberations will focus on critical fiscal, economic, and developmental issues, while committee chairpersons will present outcomes from stakeholder consultations. Ministers will in turn provide policy responses and insights.
According to Parliament, the annual Pre-Budget Seminar is a cornerstone of Zimbabwe’s fiscal planning framework — a mechanism that ensures citizen participation and transparency in the national budgeting process.
“The seminar reinforces principles of transparency, accountability, and inclusivity in the management of public finances,” organisers noted, emphasising that the forum provides citizens with a voice in shaping resource allocation and development priorities.
This year’s discussions build upon outcomes from nationwide budget consultations and are expected to produce actionable solutions to prevailing fiscal challenges while identifying key priorities for 2026.
Held in compliance with Section 28(5) of the Public Finance Management Act, the seminar highlights Government’s commitment to prudent financial governance and efficient resource allocation to stimulate economic growth and bolster productive sectors.
The event also coincides with the conclusion of the National Development Strategy 1 (NDS1: 2021–2025) and the forthcoming launch of its successor, NDS2 (2026–2030). Cabinet has approved the NDS2 roadmap, which is expected to consolidate gains achieved under NDS1, address outstanding gaps, and accelerate progress toward Vision 2030.
The final draft of NDS2 is expected to be completed by the end of November, ahead of its official launch by President Mnangagwa, with full implementation set to begin in January 2026.
In July, Prof Ncube presented the 2026 Budget Strategy Paper to Parliament, titled “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030.” He underscored that the new strategy would be anchored on domestic, regional, and continental priorities, focusing on industrialisation, diversification, and economic integration.
“The country’s development trajectory is aligned with the SADC Regional Indicative Strategic Development Plan (RISDP 2020–2030), which seeks to deepen regional integration and industrial development. This is also aligned with the AU Agenda 2063, now in its second decade of implementation,” Prof Ncube said.
He added that the 2026 development strategy is designed to actualise these priorities through industrialisation, innovation, and sustainable economic diversification.
The 2026 Budget Strategy Paper projects a real GDP growth of five percent between 2026 and 2029, driven by sustained improvements in the agriculture, mining, ICT, and electricity sectors. Inflation is expected to moderate to 12.7 percent by year-end, averaging 17.1 percent during the fiscal year.
The fiscal framework aims to maintain discipline with a targeted budget deficit below three percent of GDP, based on total revenues of ZiG309.9 billion and planned expenditures of ZiG335.6 billion. In US dollar terms, this equates to US$8.7 billion in revenue against US$9.4 billion in expenditure, resulting in a deficit of US$722.2 million (1.4 percent of GDP).
Government has reaffirmed its commitment to aligning expenditure with available resources to sustain macroeconomic stability and growth. The 2026 revenue mobilisation strategy will prioritise equity, fairness, efficiency, and transparency — strengthening tax administration, combating smuggling, streamlining tax expenditures, and improving compliance among small businesses and the informal sector.
On expenditure, key focus areas will include agriculture and food security, infrastructure, social protection, health, education, and climate change adaptation — all aimed at fostering private-sector-led growth in line with NDS2 and Vision 2030 objectives.
The Zimbabwe National Chamber of Commerce (ZNCC), in its submissions to the Ministry of Finance, welcomed the Government’s review of regulatory fees and urged the extension of the exercise to other sectors such as manufacturing, retail, and services.
“Our proposals are designed to be constructive and actionable. They build on lessons from NDS1 while positioning the private sector as a central partner in implementing NDS2 priorities,” the ZNCC said.
The chamber also raised concerns over delayed payments to Government contractors and unsettled export balances, saying these issues were constraining business cash flows.
“If effectively implemented, the 2026 budget can anchor stability, industrialisation, and prosperity that benefits every Zimbabwean,” the ZNCC added.
In the banking sector, ZNCC called for the reversal of the Zimbabwe Revenue Authority’s (Zimra) decision to disallow interest expenses as deductible costs for tax purposes, arguing that interest constitutes a legitimate component of financial institutions’ cost structures.
“Reinstating these deductions will strengthen financial intermediation and reinforce confidence among depositors and investors,” the chamber noted.
ZNCC also commended monetary authorities for stabilising the domestic currency and curbing exchange rate volatility, saying improved fiscal-monetary coordination had enhanced predictability and business confidence. – Herald