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ZIMBABWE’S 2027 National Budget presents an opportunity to consolidate economic gains, accelerate productive investment and strengthen resilience against climate and global shocks as
Government pursues its ambition of attaining upper-middle-income status by 2030.
After the economy expanded by 8,3 percent in 2025, Finance Minister Professor Mthuli Ncube says
the forthcoming fiscal framework will build on macro-economic stability, infrastructure
development and expanding productive capacity to sustain economic transformation.
Speaking at the 2027 Pre-Budget Seminar in Bulawayo on Wednesday, Prof Ncube outlined a policy
direction that places investment, food security, industrial growth and private sector participation at
the centre of the country’s development agenda.
Although economic growth is projected to moderate to 3,5 percent in 2027 from five percent in 2026, Government intends to strengthen economic resilience and unlock new sources of growth.
The anticipated Super El Niño has also prompted preparations to protect agricultural production,
safeguard livelihoods and ensure continuity in economic activity.
The 2027 Budget will be guided by the National Development Strategy 2 (NDS2), which seeks to
accelerate progress towards Vision 2030 while consolidating achievements under the first
development strategy.
Prof Ncube said the fiscal framework would focus on sustaining economic momentum while
responding to emerging opportunities and challenges.
“The 2027 National Budget will be guided by the NDS2 priorities, aimed at accelerating the
country’s momentum towards the long-term developmental objectives in Vision 2030, while responding to current economic realities,” he said.
Agriculture remains a key pillar of Zimbabwe’s economic transformation, supporting food security, employment, rural livelihoods and industrial development.
Government’s six-pillar drought response plan is expected to strengthen the sector’s resilience through expanded irrigation, climate-smart agricultural financing and enhanced grain reserves.
The strategy targets a Strategic Grain Reserve of 600 000 tonnes by October 2027, supported by procurement from the 2025/26 summer harvest and subsequent winter harvests.
It also promotes summer irrigated cereal production, private sector participation, livestock drought mitigation and enhanced early warning systems.
These interventions offer investment opportunities in irrigation infrastructure, agricultural finance, insurance, grain handling, storage and agro-processing.
Prof Ncube said Government was taking an anticipatory approach to the expected climatic shock.
“Our approach is anticipatory, not reactive. A Super El Niño does not automatically mean drought,
but Government is mobilising resources ahead of the shock from its own budget, banks, private
contractors and off-takers, agricultural financing, insurance (including sovereign drought
insurance) and development partners,” he said.
The approach highlights the role of partnerships in supporting agricultural productivity and
strengthening the economy’s capacity to withstand climate shocks.
Infrastructure development is also expected to drive economic activity in 2027, with Government
using the Infrastructure Development Fund to mobilise resources from domestic, regional and
international institutions.
The fund is designed to accelerate infrastructure rehabilitation and development through identified
revenue streams.
Projects include the Harare-Beitbridge and Bulawayo-Victoria Falls highways, major water
infrastructure developments such as Gwayi-Shangani and Kunzvi dams, and rural electrification
programmes.
The investments are expected to improve connectivity, access to reliable water and electricity, and
the operating environment for businesses.
For industry, improved infrastructure could help expand production, ease logistical constraints and
connect enterprises to domestic and regional markets.
The 2027 Budget will also target an overall deficit of less than three percent of gross domestic
product, reinforcing Government’s commitment to fiscal discipline while prioritising development
expenditure.
Revenue collections for 2026 are projected at ZiG287,64 billion against expenditure of ZiG290,88
billion.
During the first nine months of the year, Government recorded a cash surplus of ZiG36 billion,
which was used to repay some outstanding loan obligations.
Zimbabwe’s expanding export base provides another foundation for the 2027 economic outlook.
Exports are projected to reach US$14,9 billion in 2026 before increasing to US$15,7 billion in 2027,
driven by gold, tobacco, platinum group metals, lithium and steel.
Prof Ncube said the country would increasingly focus on beneficiation and value addition to
maximise returns from its mineral resources.
This presents opportunities to deepen industrial linkages, attract investment and strengthen
manufacturing’s contribution to economic growth.
Manufacturing capacity utilisation has risen from 45,1 percent in 2017 to a projected 63,5 percent in
2026, while output is 41,4 percent higher than in 2022.
Quantified private and public investments in the sector stand at US$3,56 billion, reflecting investor
participation in Zimbabwe’s industrial development.
The 2027 Budget will seek to consolidate this momentum through infrastructure improvements,
policy reforms and support for productive sectors.
The fiscal framework will also consolidate ten NDS2 priority areas, including macro-economic
stability, infrastructure development, agriculture, digitalisation, job creation, regional development
and social protection.
For businesses and investors, the policy direction offers opportunities to participate in expanding
productive sectors while supporting the country’s long-term development ambitions.
Prof Ncube said Government would continue implementing structural reforms to improve public
spending efficiency and foster private sector-led growth.
“As we consolidate the milestone achievements of NDS1, our strategy will directly prioritise creating
an enabling and attractive environment for both domestic and international investment,” he said.
The 2027 Budget is due to be presented in Parliament on 19 November, providing an opportunity to build on economic gains, strengthen productive capacity and deepen investment across key sectors.
With infrastructure development, agricultural resilience and industrial expansion on the policy agenda, the fiscal framework is expected to support Zimbabwe’s transition towards a more diversified, competitive and resilient economy.
