Online Reporter
Business Writer
ALL eyes will be on Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube this afternoon as he presents his “reform-anchored, stability-driven and growth-focused” 2026 National Budget statement at the new Parliament Building in Harare.
Rightfully, the 2026 fiscal plan will pronounce policy measures to maintain the prevailing economic stability that followed the local currency switch to Zimbabwe Gold in April last year and the coterie of supporting fiscal and monetary policy measures that have reduced inflation and stabilised the exchange rate.
The 2026 National Budget marks the next phase of Zimbabwe’s rapidly evolving economic trajectory, as the first of the five during the half decade to 2030, by which Zimbabwe should have attained upper middle income status.
Economic analysts expect the national budget to pronounce additional policy interventions to anchor the prevailing macroeconomic stability, improve Zimbabwe’s business climate, and consolidate and accelerate growth.
The budget plan coincides with the expiry of the first five-year National Development Strategy 1, which has refocused and set the economy on a strong footing. The country’s next medium-term plan, NDS2, to be unveiled soon, will indicate the policy thrust for the next five years.
As such, the 2026 National Budget, essentially a microcosm of the broader NDS 2 policy framework, is expected to usher Zimbabwe into upper-middle-income status by 2030.
The vision is being pursued through sequential five-year development strategies, the NDS 1 and 2, and aligns with global frameworks, notably the United Nations Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063, to achieve inclusive and sustainable socio-economic development.
The Treasury has promised a spending plan that consolidates recent gains while steering the economy towards higher productivity and competitiveness.
Earlier this year, Minister Ncube said the 2026 budget would remain firmly aligned with the dictates of NDS 2, with macro-economic stability at the centre of all policy interventions.
The Treasury chief has projected a five percent gross domestic product (GDP) growth in 2026, from 6,6 percent this year, premised on expected normal rainfall patterns, improved electricity generation, a stable exchange rate and moderate international commodity prices. The budget deficit is projected to remain within the statutory limit.
The 2026 budget will channel significant resources towards energy, transport and housing infrastructure. Minister Ncube said the Government was prioritising investments that reduce logistics bottlenecks and enhance regional competitiveness.
The Treasury has already started on comprehensive business reforms to lower the cost of doing business, streamline licensing requirements and cut the number of regulatory permits.
In the energy sector, Treasury will increase support for renewable projects while ensuring thermal energy sources remain stable to avoid supply disruptions.
Agriculture will also take a significant chunk of the 2026 national budget, with greater emphasis on climate resilience and food security following recent dry spells.
The budget framework emphasises innovation, digital transformation and closing the gap between academia and industry. The Government will roll out compulsory digital skills certification for civil servants and expand research funding.
Youth empowerment, women’s economic participation, and support for people with disabilities will remain integral parts of the 2026 plan. The minister said devolution allocations will continue to support the completion of critical community infrastructure projects.
As part of consultations ahead of the 2026 national budget, the Confederation of Zimbabwe Industries (CZI) presented a strong case for tax reforms, including the need to scrap the Intermediate Money Transfer Tax (IMTT).
The industrial lobby, the most influential business advocacy group, also implored the Government to implement measures to strengthen wider use of the Zimbabwe dollar, noting that weak demand for the currency affects pricing and confidence in the market.
It also called for a shift from indirect to more growth-friendly taxes, expedited clearance of Government arrears to industry, increased policy consistency, improved transparency in revenue collection and incentives to encourage businesses to transact in ZiG
Economist Gladys Shumbambiri-Mutsopotsi said the success of the 2026 national budget depended on the Treasury’s spending discipline, which sustained macro-stability this year, which saw annual inflation plunge 95,8 percent mid this year to 32,7 percent last month.
Banker Mr Raymond Madziva said the 2026 budget must go beyond stability and introduce practical incentives that increase demand for the Zimbabwe dollar.
Mr Madziva noted that the Government could also increase ZiG demand by expanding the list of taxes, fees and duties that must be paid in local currency.
With the minister emphasising stability and reform in the next fiscal plan and industry pushing for tax realignment, economists calling for efficient revenue mobilisation and financial experts urging stronger local currency support, tomorrow’s national budget carries high expectations beyond its numbers.
