Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
A SIGNIFICANT number of Zimbabweans has now reached middle-income status, spending an average of US$9 per day, amid growing economic stability, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
Addressing guests at the ongoing 2026 Pre-Budget Seminar in Bulawayo yesterday, Prof Ncube said Zimbabwe was firmly on course to achieving Vision 2030 of attaining upper middle-income economy status, guided by the National Development Strategy 1 (NDS1).
“The National Development Strategy 1, which is our national development strategy, is coming to an end at the end of the year, 31 December. I am happy to report that the average rate of economic growth during the five years 2021 to 2025 will be of the order of 5,6 percent of GDP because we are expecting a 6,6 percent rate of growth this year,” said Prof Ncube.
He noted that the growth trajectory was in line with Government projections.
“So that figure is actually on target. Our target for the period was about 5,2 percent. So 5,6 percent — I think we have done well in meeting that target,” he said. The seminar, themed “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030,” brings together key stakeholders to deliberate on fiscal, economic and developmental priorities that underpin the national budget framework.
The Pre-Budget Seminar forms a vital component of Zimbabwe’s fiscal architecture, ensuring that citizens’ views are incorporated into national planning while reinforcing transparency, accountability and inclusivity in public finance management. Prof Ncube noted that the country’s accelerated infrastructure development during the NDS1 period, particularly in roads, dams and energy projects, was driven by both Government initiatives and private sector participation.
“I think it’s fair to say as well, during the NDS1 period, we have seen accelerated investments in the infrastructure sector, our roads, our dams specifically, and now we are beginning to see investments in the energy space, both by the Government as well as the independent power producers,” he said.
He added that these investments have laid a solid foundation for achieving upper-middle-income status by 2030.
“We think that, really, we are on track to achieve upper middle-income status. In fact, there is a slight feather down with the macro-fiscal framework.
You will see that by 2030, we will be very close to, if not have achieved, the upper middle income status,” said Prof Ncube. According to the World Bank, countries with a Gross National Income (GNI) per capita of at least US$4,500 qualify as upper middle-income economies. “So the minimum GNI per capita should be US$4,500 per person, and this is an annual figure. That means that you ought to be able to spend on any given day no less than US$12 per person. Currently, on average, with the GNI per capita of US$3,300, that implies that we are spending US$9 per day,” said the Minister.
“So if you are able to spend nine dollars per day, consistently through the year, you are already middle income. You are already middle-income.
“But to get to upper middle income, you should be spending US$12.
Since you are already spending nine dollars, you are already there,” he said.
Prof Ncube underscored that macroeconomic stability and currency confidence have been at the core of the Government’s reform agenda under NDS1.
“Since 2003, the currency was unstable, so we abandoned the currency and introduced a currency which was basically the US dollar,” said Prof Ncube.
Commenting on budget performance, he noted that from January to September 2025, the main contributors to total revenue collections were Value Added Tax (23,7 percent), Personal Income Tax (19,3 percent), Excise Duty (11,5 percent), Corporate Income Tax (11,2 percent) and Customs Duty (6,9 percent).
Cumulative expenditure during the same period amounted to ZiG151,7 billion, against a target of ZiG193,8 billion. This variance reflects the exchange rate differential between the outturn (US$1:ZiG27) and the projection at Budget approval (US$1:ZiG36).
Budget utilisation stood at 55 percent based on the approved budget, and 69 percent when adjusted for the exchange rate.
Prof Ncube said the 2026 National Budget would be guided by NDS2 priorities, aimed at accelerating momentum towards Vision 2030 while addressing prevailing economic realities.
The focus will include consolidating macroeconomic stability and deepening financial sector reforms, inclusive economic growth and structural transformation, infrastructure and housing development, agriculture, food security, climate resilience and environmental protection, science, technology, digitalisation and innovation.
Also, the focus is on job creation, youth entrepreneurship and human capital development, cultural and creative industries, regional development through devolution, good governance, institutional strengthening, peace and security
“These priorities reflect the Government’s commitment to inclusive, resilient and sustainable growth, notwithstanding evolving global and domestic challenges,” he said.
Prof Ncube said the Government would continue implementing structural reforms to improve public spending efficiency and promote private sector-led growth.
“As we are consolidating gains achieved during the NDS1 period, the 2026 revenue strategy will take into consideration the need to attract and retain both domestic and foreign investment. As such, it is essential for Ministries to spend within budgeted frameworks, assist in sequencing of priorities and identify areas for sustainable and efficient revenue mobilisation.”
Macroeconomic stability has been reinforced through tight fiscal and monetary discipline, with a central bank policy rate of 35 percent and statutory reserve requirements maintained at 30 percent for demand and call deposits, and 15 percent for time and savings deposits.
The strategy for building foreign currency reserves has also yielded positive results following the introduction of the ZiG.
Foreign currency reserves have grown from below US$300 million in April 2024 to over US$900 million by September 2025, with a target of US$1 billion by December 2025.
