Online Reporter
Good afternoon, Zimbabwe!
Join us as we cover Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube’s presentation of the 2025 Midterm Budget Review at the New Parliament Building in Mount Hampden this afternoon.
The presentation provides an update on Zimbabwe’s economic performance in the first half of the year and outlines fiscal projections for the remainder of 2025.
DOWNLOAD THE 2025 MIDTERM BUDGET REVIEW DOC HERE
The mid-year statement will offer an account of how the national budget has been utilised so far, while also shedding light on key economic indicators, including revenue collection, expenditure, as well as deficit levels.
During his presentation, Prof Ncube will elaborate on Tuesday’s Cabinet approval of the review of levies, licences, fees and permits across 12 sectors of the economy, a move aimed at easing the cost of doing business in Zimbabwe.
Stay tuned!
Expectations from industry
In his presentation, the minister is expected to outline:
the review of levies, licence fees and permits in line with easing the cost of doing business.
measures being implemented to clear the country’s debt and arrears.
measures that will combat revenue leakages in the informal sector.
an update on progress of tax reforms targeting the informal sector, including efforts to compel informal businesses to register for Corporate and Income Tax. This follows findings from the 2023 Economic Census by the Zimbabwe National Statistics Agency (Zimstat), which revealed that 76,1 percent of business operations surveyed were classified as informal.
calls from individuals and business leaders for a review of the personal income tax-free threshold.
the development of the 2026 National Budget Strategy Paper, outlining the Government’s fiscal priorities for the medium term as the country transitions to NDS 2.
measures the Government seeks to take regarding tax reforms to capture the informal sector. “NDS1 focused on infrastructure development. However, as we go into NDS 2, we expect the minister to speak on issues such as education, health and other social amenities that promote the well-being of communities,” said Economic expert, Mr Persistence Gwanyanya.
“Highlight mechanisms to gradually formalise the informal sector, through simplified licensing, digital tax filing and incentives for SMEs,” said another economic analyst, Mr Namatai Maeresera
What the Finance Minister has said
In an interview with Zimpapers Digital, Prof Ncube said the review will not only evaluate the macroeconomic environment but also indicate any adjustments to the fiscal framework.
“It’s about updating the nation on the state of the economy — global and local — and how budget utilisation has progressed in the first half of the year,” he said.
“Also, to talk about the outlook for the rest of the year and maybe a few pointers into next year.”
While today’s address will focus on the outlook for the remainder of the year, Prof Ncube noted that broader fiscal and economic plans for 2026 will be detailed in the full budget presentation scheduled for November.
“When it comes to next year, I will have the time to do that in November. this is just for the rest of the year,” he said.
“I will explain if there has been a change in the fiscal framework, revenue projection, deficit expenditure, and the state of the current account situation.”
What is a budget mid-term review?
A review of the performance of the economy in the first half of the year.
Outlines fiscal projections and economic outlook for the rest of the year.
The review is a drill-down of how budget allocations have been utilised in the first six months of the year.
It sheds insights on key economic indicators such as:
1) revenue collection,
2) expenditure,
3) and deficit levels
Parliament business suspended for review
Parliament business has been suspended to pave way for the Finance Minister’s presentation.
Expectations are high that the mid-term review will bring additional measures to sustain the current stability evidenced by the stable inflation and exchange rate.
Finance Minister arrives
Finance, Economic Development and Investment Promotion Minister, Prof Mthuli Ncube has arrived at the New Parliament Building ahead of his presentation of the mid-term budget review.
Several other ministers are already in the house.
Numerous members of Parliament, business leaders and economists have also taken their seats.
The budget review will be presented at 14:45 hrs
Mid-term review kicks off
…Minister highlights growth and stability
Finance Minister, Prof Ncube gets on the podium and says budget is on course despite global developments.
Power supply has improved largely due to the power supply from Hwange.
“We would like to stay the cause of stability,” says Prof Ncube.
He says improved agriculture production and sustained economic stability has led to an improved economic outlook for the country.
GDP rebasing exercise, the size of the economy is now US$44 million, gross income per capita now above US$3000 as the economy continues to improve.
The Minister says the economy is now dominated by the manufacturing sector, which has is contributing 15 percent to the GDP.
‘Inflation to remain stable’
The Finance Minister says the projected 6 percent GDP growth is achievable due to current stability and growth in key economic sectors.
“All sectors are expected to record growth driven by agricultural recovery,” he says.
Prof Ncube says inflation is going to remain stable, adding that the exchange rate stability has been a result of stable currency.
All sectors of the economy are expected to positively contribute to the country’s economy, largely due to an improved agriculture season, improved electricity generation, and a stable exchange rate.
Current account surplus remains positive at $19,9 million and is expected to be $621,7 million by year-end.
He also highlights that exports continue to grow, largely driven by gold exports.
Diaspora remittances stood at over US$900 million in the first five months of the year.
Government is implementing the arrears clearance process to unlock new funding and improve relations with lenders.
ZiG15,7 billion channelled towards infrastructure development
He says ZiG15,7 billion had been spent on infrastructure development by the end of June, with the installation of bucket seats at the National Sports Stadium now at 66 percent.
By 2030, Government will ensure accessible energy through the ongoing power projects and new ones that are coming up.
“Government has invested significantly in housing service delivery and is supporting digital transformation and improving government systems.”
Government seized with improving ease of doing business
Prof Ncube says key focus for the second half of the year is to improve the cost of doing business and improve the business environment, starting with the reduction of various levies and fees.
“We are going to review regulation fees and penalties sector by sector, starting with the agriculture sector.
“We will grow the revenue tax base through reviewing the tax system for business growth, both locally and regionally.”
He says the Government is developing a revenue framework to bring the informal sector into the formal economy.
‘National budget is solid and adequate’
Prof Ncube says the fiscal and monetary authorities will remain focused on maintaining economic stability.
“The budget is adequate and solid enough to sustain shocks. Government will stay the course of stability,” declares the minister as he concludes his speech.
Online Reporter