Nqobile Bhebhe
Zimpapers Business Hub
ZIMBABWE is on the cusp of an economic golden era anchored on far-reaching and transformative Government policies aimed at attaining a prosperous and empowered upper middle-income society by 2030, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
Delivering the keynote address at the oversubscribed 2026 National Budget Post-Budget Breakfast Meeting in Bulawayo yesterday, Prof Ncube said Government is targeting a single-digit inflation environment in the local currency ZiG by the first quarter of 2026.
Since the advent of the Second Republic, Government has rolled out a series of economic blueprints, beginning with the Transitional Stabilisation Programme (TSP) (2018-2020), followed by the National Development Strategy 1 (NDS1) (2021-2025), and the recently launched National Development Strategy 2 (NDS2) (2025-2030) that comes into force on January 1.
During the NDS1 period, Zimbabwe recorded notable progress across all 14 thematic areas, reflecting resilience, economic recovery and improved governance as the country steadily advanced towards Vision 2030.
Real Gross Domestic Product (GDP) growth averaged 5,6 percent under NDS1, driven by recovery in agriculture, mining and manufacturing, a major improvement from the average negative growth of –0,7 percent recorded in the five years prior to NDS1.
Domestic currency annual inflation had declined sharply from triple-digit levels at the onset of NDS1 to an estimated 20 percent by this month and would continue falling to reflect the low monthly inflation of less than 1 percent.
This progress was achieved despite persistent global shocks, including commodity price volatility, geopolitical tensions and the COVID-19 pandemic, Prof Ncube said.
The country last experienced single-digit annual inflation in the local currency in 1997.
He said ZiG annual headline inflation has decreased from a peak of 95,8 percent in July to 19,0 percent by November 2025.
“In 2026, the ZiG annual inflation rate is projected to decline to single-digit levels, reflecting anchored inflation expectations, currency and exchange rate stability, as well as strengthened monetary-fiscal policy coordination,” said the minister.
“This is the beginning of the golden era for Zimbabwe; we are at the cusp. For the first time in 32 years, I declare that,” he said.
Prof Ncube cited the introduction of the local currency, ZiG, in April 2024 as one of the most critical milestones achieved during the NDS1 period, noting that it has restored price and macro-economic stability.
“This was achieved through concerted efforts by both the monetary and fiscal authorities and it is very important to stay the course in order to sustain the stability, critical for the attainment of Vision 2030.
“This is achievable if all stakeholders have a unity of purpose on economic transformation, so that growth is shared through the creation of decent jobs with decent incomes, while the vulnerable members of society are equally taken care of through transparent and credible social protection programmes.
“Collectively, we can build a modern, resilient, and prosperous economy that delivers on the aspirations of Vision 2030 of an Upper Middle-Income Status,” said Prof Ncube.
This year’s National Budget, presented a few weeks ago, is themed “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030.”
Prof Ncube said the proposed 2026 National Budget fully supports the pillars of NDS2.
He also commended several value chains that performed strongly during NDS1, including iron and steel, oil extractors, dairy, cotton and clothing, leather and textiles, as well as the minerals sector.
The Post-Budget Breakfast Meeting was hosted by Zimpapers, the country’s largest integrated media group, in collaboration with the Confederation of Zimbabwe Industries (CZI).
The high-level platform brought together leading business and financial sector firms to unpack the implications of the 2026 National Budget.
The Bulawayo meeting followed a similar engagement held in Harare last week.
Responding to the media after the post-budget meeting, Prof Ncube said there is room for adjustments to the budget before it is passed by Parliament.
“Oh yes, there is room for adjustment. That is why we have these post-budget consultations and discussions. Because until the budget is passed by Parliament, it is still open for input and discussion, and that’s what we’re doing,” he said.
He said Government has received strong input on issues such as gold royalties, particularly from stakeholders in Bulawayo, while other measures in the budget have been widely commended.
“There are areas where the budget is being commended, for instance, for incentivising the business process outsourcing and knowledge-based organisations,” he said.
On reforms in the gold sector, Prof Ncube said Government intends to modernise the legal framework governing gold trade and support the use of gold as an alternative investment asset.
“In order to modernise the gold trade legal framework and support the use of gold as an alternative investment asset, I proposed to expand the categories of persons who may lawfully possess or deal in gold to include authorised dealers, the national gold refinery and individuals in possession of certified gold bars acquired from these entities.
“I also proposed that holders of certified gold bars, subject to the Exchange Control Act, be allowed to pledge, exchange, sell, barter, or otherwise transact in these bars. This reform will facilitate the introduction of regulated, traceable investment-grade gold products, thereby offering citizens a secure store of value,” he said.
On the 24-hour economy, Prof Ncube said stakeholders have called for additional incentives, particularly around electricity pricing.
“The cost of electricity is something that they are raising, that it would work well if electricity was cheaper during the night. They want some relief there, so we know that’s an area that we need to negotiate with the Ministry of Energy to lower that cost, so that then we can encourage the 24-hour economy,” he said.
He also addressed concerns around the e-services tax and the proposed 0,5 percent increase in Value Added Tax (VAT).
“There are 14 products, at least, that are not VAT-able. There’s no VAT at all, which are consumed by the lower tiers of society.
“So we have taken care of the poor by zero-rating these products. So they won’t be affected at all. It’s only just half a percent, just to make sure Government can continue to support social services,” he said.
Prof Ncube said 42 percent of the budget is allocated to the social sector, including health, education and social protection. Much of that budget goes on the large numbers of qualified and skilled staff these sectors need.
“Forty-two percent of revenue supporting the social sector amounts to seven percent of GDP. So it means that any growth we experience, any year of five percent and so forth, we take all of that and apply it to the social sector.
“So clearly, growth is inclusive in that way. But of course, we need to create durable jobs,” he said.
In his presentation, United Refineries Limited managing director and Zimbabwe Investment and Development Agency (ZIDA) chairman Dr Busisa Moyo urged Government to allocate more resources to the manufacturing sector.
“Based on the budget, allocation to industry seems very small given where we are and the programmes needed for the manufacturing sector and industrial expansion.
“We encourage a much healthier figure in future. From the budget one can see manufacturing growth slowing down slightly; the quality of manufacturing-led growth is important,” said Dr Moyo.
“I believe that the manufacturing sector should be leading the growth. As CZI, we firmly believe in value addition,” he said.
Dr Moyo said that neighbouring countries are placing strong emphasis on industrialisation. “We certainly do not want to be left behind. Primary production is very valuable, but the variability of earnings from primary production is very high,” he said.
On foreign direct investment (FDI), he said Zimbabwe’s private sector lending stands at about US$2,5 billion, while FDI is around US$3,2 billion.
“For higher GDP growth, incentives, FDI, and private sector credit of between US$12,5 billion and US$15 billion will be needed to achieve double-digit GDP growth and clear the investment backlog,” he said.
Participants at the meeting also welcomed Government’s proposal to review the Intermediated Money Transfer Tax (IMTT) on ZiG-denominated transactions from two percent to 1,5 percent to promote use of the local currency and lower transaction costs. The 2 percent IMTT on foreign currency transactions will be maintained.
The budget also proposes to review VAT by 0,5 percent to 15,5 percent with effect from 1 January 2026.
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