Zimbabwe targets 6% growth in budget review

Philemon Jambaya

Zim Now Editor

All eyes are fixed on Treasury this afternoon, July 31, 2025, as Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, takes center stage to present Zimbabwe's 2025 Mid-Term Budget Review. The nation holds its breath, keenly anticipating revised tax and revenue collection measures designed to propel the country towards its ambitious target of a six percent annual growth rate.

This crucial review comes at a pivotal moment for Zimbabwe's economy, which has recently displayed encouraging signs of recovery. Notable improvements have been recorded across key sectors, including the bustling mining industry, the resilient agricultural sector, and a resurgent manufacturing base. Complementing these gains has been a relative stabilization of the domestic currency, the Zimbabwe Gold (ZiG), offering a much-needed foundation for future growth.

Government sources hint that Professor Ncube's presentation will not only highlight the economic achievements notched during the first half of the year but will also candidly address outstanding challenges. These include navigating persistent global economic headwinds and mitigating the impact of climate-related disruptions that continue to pose threats to various sectors.

Development economist, Dr. Shadreck Matindike, underscored the profound importance of today's presentation. He described it as an "essential economic indicator" that promises invaluable insight into impending fiscal adjustments and strategic priority realignments. “The budget review is vital in creating the basis of where the economy is moving or progressing by giving a clear picture on merits to be derived while focusing on revising the shortfalls with a view of balancing the needs of the economy and available resources,” Dr. Matindike explained. He further emphasized its role as "an important indicator in sustaining overall development and further accelerating growth targets riding on current gains and the development agenda as enunciated by the Government."

With robust domestic consumption and bolstered investor confidence high on the national agenda, it is widely anticipated that the mid-term budget review will propose new tax incentives aimed at stimulating economic activity. Furthermore, measures to enhance the use and acceptance of the ZiG currency are expected, alongside a renewed commitment to tightening fiscal discipline across all public institutions. These initiatives are crucial for solidifying the recent economic gains and fostering a predictable operating environment.

Honourable Clemence Chiduwa, Chairperson of the Parliamentary Portfolio Committee on Industry and Commerce, weighed in on the pressing need for the review to provide tangible support for the productive sectors of the economy. “The budget review should focus mainly on policies to boost investor confidence through measures that seek to further boost the capacity of industries while unlocking value to the entire value chains,” he asserted. He stressed that the review must "assess and review the performance of the economy in the first six months and chart the way forward for the next six months," with a keen eye on "sustainable measures to foster confidence and industrial growth."

The positive trajectory of Zimbabwe's economy has not gone unnoticed by key global financial institutions. Both the International Monetary Fund (IMF), the World Bank, and the African Development Bank have all publicly endorsed Zimbabwe’s projected six percent economic growth for 2025, signaling growing international confidence in the country's reform agenda.