Online Reporter
Business Reporter
FINANCE, Economic Development and Investment Promotion Minister Professor Mthuli Ncube will tomorrow present his “reform-anchored, stability-driven and growth-focused” 2026 National Budget at New Parliament Building in Harare.
The 2026 statement of proposed income and expenditure, with breakdowns for each ministry, marks the next phase of Zimbabwe’s rapidly evolving economic trajectory.
The budget will maintain Zimbabwe’s strict fiscal discipline with all recurrent and most capital expenditure paid out of taxes, and the deficit limited to specific capital programmes and being under 3 percent of GDP.
Economic analysts expect the fiscal statement to outline additional policy measures to anchor the prevailing macroeconomic stability, improve Zimbabwe’s business climate and accelerate growth.
The 2026 fiscal plan coincides with the end of the five-year National Development Strategy 1 (NDS1), which has set the economy on a strong footing for durable and accelerated growth going forward, with the NDS2 soon to be launched expected to provide the broad framework and targets for the next half decade.
The 2026 National Budget, therefore, is essentially a microcosm of the broader NDS 2 policy framework 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 & 2, and aligns with global frameworks, notably the United Nations Sustainable Development Goals and the African Union’s Agenda 2063, to achieve inclusive and sustainable socio-economic development.
Treasury has promised a spending plan that consolidates recent gains while steering the economy towards higher productivity and competitiveness.
Earlier this year, Prof Ncube said the 2026 budget would remain firmly aligned with the dictates of NDS2, with macro-economic stability at the centre of all policy interventions.
“The foundation of this budget is stability, fiscal, monetary and macro-economic stability. Without that, every reform becomes fragile. We are maintaining strict fiscal discipline and the zero-central-bank-financing stance because it is essential for confidence in the local currency and in the broader economy,” he said.
Prof Ncube has projected a 5 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 and be limited to capital expenditure that produces a guaranteed stream of revenue to service the new debt.
“Our aim is to keep the deficit below 3 percent of GDP. This ensures we do not crowd out the private sector while protecting resources for programmes that stimulate production and support vulnerable groups,” the minister added.
The 2026 budget will channel significant resources towards energy, transport and housing infrastructure.
Prof Ncube said the Government was prioritising investments that reduce logistics bottlenecks and enhance regional competitiveness.
Treasury has already started on comprehensive business reforms to lower the cost of doing business, streamline licencing requirements and cut the number of regulatory permits.
“Zimbabwe must be a logistics hub for the region. Our infrastructure investments are deliberately structured to reduce costs for industry, improve mobility and anchor long-term competitiveness,” Prof Ncube noted.
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.
“Climate shocks have reminded us of the need for resilience. Part of this budget focuses on securing food systems and ensuring that agricultural financing attracts more private capital,” the minister said.
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.
“Skills are the backbone of industrialisation. We are positioning Zimbabwe to compete globally by strengthening innovation and aligning educational outputs with industry needs,” Prof Ncube said.
Youth empowerment, women’s economic participation, and support for people with disabilities will remain integral parts of the 2026 plan.
Prof Ncube said devolution allocations will continue to support the completion of critical community infrastructure projects.
“Devolution is about equity. We are increasing efficiency and transparency in how local authorities use resources under the Inter-Governmental Fiscal Transfer System,” he noted.
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.
The industry body said removing the IMTT would help reduce costs, enhance competitiveness and support formalisation.
The industrial lobby, the most influential business advocacy group, also implored the Government to implement measures to strengthen wider use of the Zimbabwe ZiG currency.
Economist Gladys Shumbambiri-Mutsopotsi said the success of the 2026 national budget depended on Treasury’s spending discipline, which sustained macro-stability this year, and saw annual inflation plunge 95,8 percent mid this year to 32,7 percent last month.
She said the Finance Minister should prioritise measures that expand the tax base without imposing punitive taxes on formal businesses.
“Fiscal stability is not only about cutting spending; it is about widening the tax net in a way that supports production. The minister must continue plugging leakages, strengthening ZIMRA (Zimbabwe Revenue Authority) systems and addressing informal-sector taxation,” Ms Shumbambiri-Mutsopotsi said.
She added that the fight against illicit financial flows should be intensified, as the country continues to lose millions annually through under-invoicing, smuggling and tax evasion.
“Domestic resource mobilisation is essential. If we maintain discipline and improve tax administration, the stability we are seeing will hold,” Ms Shumbambiri-Mutsopotsi said.
Banker Mr Raymond Madziva said the 2026 budget must go beyond stability and introduce practical incentives that increase demand for the Zimbabwe dollar.
“Local currency demand is a function of confidence, utility and policy consistency. The budget must make the Zimbabwe dollar more useful in everyday business.
“That means settling Government obligations in local currency, increasing ZiG-denominated payments in the public sector and incentivising companies to hold local-currency balances,” he said.
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.
“Once the local currency becomes indispensable in key transactions, the market will naturally adjust. This must be supported by continued fiscal discipline to avoid creating excess liquidity,” he added.
