Online Reporter
Oliver Kazunga
Senior Reporter
ALL eyes are on Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube as he presents the 2026 Mid-Term Budget Review today amid expectations from business and consumers for measures to sustain economic growth, accelerate infrastructure development and support productive sectors.
The statement is expected to provide an assessment of the economy’s performance during the first half of the year while outlining policy adjustments aimed at maintaining momentum towards the country’s Vision 2030 development agenda.
Business leaders, economists and players in the construction sector are expected to closely scrutinise the review for possible revisions to economic growth projections, fiscal measures to stimulate investment, tax policy adjustments and increased funding for strategic infrastructure projects.
The business community is also keen to hear Treasury’s assessment of revenue performance, inflation trends, exchange rate stability and progress in implementing commitments announced in the 2026 National Budget.
The Zimbabwe National Chamber of Commerce (ZNCC) president Ms Josephine Takundwa said the chamber has undertaken a comprehensive review of the tax system and has developed detailed recommendations to support efficiency, equity and growth-oriented fiscal policy.
“Regarding the tobacco excise duty framework and its implications for investment, revenue mobilisation, industrial sustainability, and regulatory effectiveness, the chamber’s position is guided by three principles: maximisation of sustainable fiscal revenues, preservation of productive industries and formal employment and the reduction of illicit trade and regulatory leakages.
“The tobacco industry remains an important contributor to Zimbabwe’s economy through agriculture, manufacturing, exports, employment creation and tax revenues.
“Any changes to the excise framework should, therefore, be evaluated not only on their immediate revenue implications, but also on their impact on compliance, investment, and the long-term viability of the value chain,” she said.
Ms Takundwa said ZNCC membership recognises the Government’s efforts to stabilise the monetary environment, including the introduction of the Zimbabwe Gold (ZiG).
“However, from a tax policy design perspective, the current mixed excise system remains more vulnerable to currency movements due to its ad valorem component.
“Transitioning to a specific excise duty regime would materially improve stability and predictability. It would also reduce administrative complexity for the Zimbabwe Revenue Authority (ZIMRA), as ad valorem taxation requires constant monitoring and verification of ex-factory prices.
“Many jurisdictions increasingly rely on specific excise structures because they are easier to administer and less vulnerable to manipulation,” she said.
“The existing dual excise structure exposes the tax system to manipulation. The ad valorem component is inherently vulnerable to practices such as under-declaration of ex-factory prices by unscrupulous manufacturers and importers, which directly erodes excise collections. In principle, products within the same category should converge around comparable ex-factory prices.
“By contrast, a specific excise duty delivers more stable, transparent, and predictable revenues, shielding collections from price manipulation and inflationary pressures.”
The construction sector, one of the biggest beneficiaries of Government’s infrastructure drive, through the Construction Industry Federation of Zimbabwe (CIFOZ), said continued investment in roads, dams, housing, energy and public buildings will be critical in sustaining economic activity during the second half of the year.
CIFOZ chief executive officer Mr Martin Chingaira said the Mid-Term Budget Review presents an opportunity for Government to reinforce its commitment to infrastructure development while addressing challenges affecting contractors, including access to affordable finance and timely payment for completed public projects.
“The Mid-Term Budget Review provides Government with a timely opportunity to reaffirm its commitment to infrastructure development by addressing the key constraints facing contractors. Improved access to affordable financing, prompt settlement of certified works, and a predictable policy environment will strengthen the capacity of local contractors to deliver quality projects on time while supporting economic growth,” he said.
Rainbow Tourism Group chief executive officer Mr Tendai Madziwanyika urged the Government to maintain the prevailing macroeconomic and currency stability, describing it as critical to sustaining tourism growth.
“Please stick to the stability of the country. As a tourism player, currency stability is very important. “We are happy with the current direction because it gives confidence to both local businesses and international visitors,” he said.
Economic commentator Mr Trust Chikohora said the Mid-Term Budget Review should focus on providing important guidance on the country’s fiscal position and indicate whether Government would maintain its current policy trajectory or introduce targeted interventions to address emerging economic challenges during the remainder of the year.
“We would like to see the revised budget place greater emphasis on infrastructure development, especially water, sanitation and irrigation, while also providing resources to mitigate risks such as climate shocks and rising fuel prices.
“With revenue performing better than expected, the Government has an opportunity to strengthen developmental spending,” he said.
In a recent interview with ZBC, Prof Ncube said Treasury is expected to reaffirm its current fiscal and monetary policy framework rather than introduce major policy shifts.
He said the existing policy mix has delivered greater economic stability, with predictability remaining essential for businesses and investors.
“The ship is sailing, it’s steady. The economy seems to be very stable; there’s stability, and we have no reason to disturb or change course.
“Economic agents should not expect us to change our course during those announcements. For this year, 2026, we are projecting the economy to grow at five percent, slightly down from the 8,3 percent experienced last year,” he said.
