Online Reporter
Evans Mushawevato, Correspondent
AS the year draws to a close, Zimbabwe’s economic story has become one of quiet persistence turning into measurable progress.
The plans laid down over the past seven years — beginning with the Transitional Stabilisation Programme (2018-2020), strengthened through National Development Strategy 1 (2021-2025) and now advancing into National Development Strategy 2 (2026-2030) — have not only held firm; they have worked.
The latest figures tabled in Parliament confirm a country that has not regressed but steadily pushed forward, building a firm foundation and structure where fragility once reigned. So, when Finance Minister Professor Mthuli Ncube rose before legislators to outline a banking sector regaining its strength, he was doing more than presenting financial ratios, he was closing one chapter of disciplined recovery and opening another defined by opportunity.
The newly launched NDS2 is not simply the next plan, it is a blueprint for accelerated economic revitalisation and a crucial step in consolidating the successes achieved under NDS1. And as Zimbabwe enters this decisive phase, the call is clear: The same focus, unity and policy consistency that drove the gains of the past must now be applied — if not intensified — to ensure NDS2 succeeds with even greater force.
For years, Zimbabwe’s financial system was defined by fragility, confidence was thin, currency instability was a constant threat and banks were weighed down by the shadows of previous crises. But the Finance Minister’s words revealed a very different landscape, one shaped by stronger capital positions, rising liquidity, robust foreign-currency buffers and a banking sector no longer driven by artificial profits but by genuine economic activity.
Beneath the technical jargon — Tier 1 capital, capital adequacy ratios, broad money supply — lies a story of hard-won progress, a story that anchors the new national strategy now underway. This transformation has not been accidental, it follows a deliberate sequence of policies stretching nearly a decade.
The Transitional Stabilisation Programme, implemented between 2018 and 2020, was the first painful step; a period of fiscal tightening and institutional rebuilding designed to halt economic free-fall.
This was followed by National Development Strategy 1, launched in 2021 to restore production, rebuild infrastructure and begin reversing years of economic erosion.
NDS1 became a period of expansion, investment and revival, often funded through domestic resources despite global headwinds and internal constraints. And now, with the launch of NDS2, the country steps into a phase meant to consolidate the gains of stabilisation and reform and turn them into deep, structural transformation.
NDS1 reshaped the economic landscape in visible, tangible ways. Zimbabwe saw the construction of new transport arteries such as the striking redesigned interchange at Mbudzi, a structure that eased congestion and opened pathways for commerce.
The expansion of Robert Gabriel Mugabe International Airport signalled the nation’s determination to modernise and integrate with global trade and tourism networks. The commissioning of Hwange Units 7 and 8 added an unprecedented 700 megawatts to the national grid, changing the country’s electricity story from deficit to emerging stability.
Across cities and villages, roads scarred by years of deterioration were rehabilitated under the Emergency Road Rehabilitation Programmes, reconnecting communities and enabling business.
Agriculture experienced a revival unlike any seen in recent decades. Maize production met national requirements, wheat reached self-sufficiency for the first time in modern memory and tobacco output climbed to a record-shattering 355 million kilogrammes.
The dairy sector, once struggling, exceeded its target with over 65 000 cows — more than double the original expectation. Manufacturing capacity rose, housing targets were surpassed ahead of time while the ambitious goal of one million housing units was set as the new benchmark. These were not abstract achievements, they were real signs that the country is beginning to repair its social and economic fabric.
It is against this backdrop that Prof Ncube’s banking sector narrative becomes more poignant. When the minister said the banking sector is “well-capitalised”, he meant that banks hold enough financial strength to protect themselves against, and by extension, the public, from unexpected shocks. In banking parlance, ‘capital’ is not simply money that flows in and out of accounts, it refers to the bank’s own cushion, its safety net.
The most important part of this safety net is something called Tier 1 capital, which is made up of money invested by the bank’s owners and the profits the bank has earned and decided to keep instead of distributing to shareholders.
When Minister Ncube revealed that banks have a Tier 1 capital ratio of 25,3 percent, far above the international minimum of eight percent, he was telling the country that the banks’ financial shock absorbers are strong. In simple terms, if the economy hits a pothole, the banks have enough suspension to keep the vehicle steady rather than overturning.
Likewise, when he mentioned that overall capital adequacy ratios are sitting at 33,8 percent, compared to the required minimum of 12 percent, this again points to a banking sector that is not just meeting global standards but exceeding them.
These ratios are calculated by comparing the bank’s capital to the risk of the loans it has issued. If the ratio is high, it means the bank can absorb potential losses without threatening depositors’ money. For ordinary Zimbabweans, this offers one critical reassurance: The banks are less likely to collapse. The minister noted that aggregate core capital — essentially the strongest portion of this financial cushion—has risen to ZiG33,1 billion.
This growth is driven largely by retained earnings, which simply means profits that banks did not spend or give out, but reinvested into their own stability. In a country where economic shocks were frequent due to illegal sanctions, this reinvestment reflects confidence by the banks in their own future. Zimbabwe’s financial landscape, as of September 2025, consisted of 14 commercial banks, four building societies, one savings bank and a rapidly expanding microfinance sector. Microfinance institutions, which grew from 259 to 296 within a year, serve the informal economy — small-scale farmers, market traders, cross-border traders and emerging entrepreneurs whose ambitions exceed their access to traditional banking services. Their growth tells its own story about where the new energy in Zimbabwe’s economic activity lies.
Prof Ncube’s statement that “. . . overall indicators demonstrate strengthened financial stability . . .” would sound vague to someone outside finance. But he backed it up with data showing rising liquidity, robust capital positions and stronger foreign currency reserves.
Liquidity, in simple terms, refers to how easily banks can access actual cash when people need it. A bank with strong liquidity can meet withdrawals, fund new loans and respond to crises without scrambling. This is one of the clearest signs that the system is functioning normally again.
These improvements are not just financial milestones, they are prerequisites for the next stage of national development. A weak banking sector cannot fuel industrialisation, infrastructure development or private-sector expansion. A fragile currency cannot support investment. But a stable financial system — liquid, well-capitalised and increasingly disciplined — becomes the backbone of national transformation. With those developments, one can say the NDS2 has been launched at an opportune moment.
What makes NDS2 so important is that, for the first time in many years, Zimbabwe begins a development cycle not in crisis, but in relative stability. The banking sector is sound; the currency remains strong; infrastructure is expanding; agriculture has proven its mettle, manufacturing is awakening while housing targets are being exceeded.
Zimbabwe has now entered a five-year period in which stability must translate into growth and growth must translate into improved livelihoods.
NDS2 is not another technical document it is intended as the country’s most determined push towards becoming an upper-middle-income economy. It seeks to deepen macro-economic stability, drive structural transformation, accelerate job creation, harness digital innovation, expand infrastructure, strengthen agriculture’s resilience to climate change, improve social protection and strengthen governance.
It is a blueprint meant to carry the country across the final stretch towards Vision 2030. Yet the path to this moment has been shaped by more than just policy frameworks; it has been shaped by ordinary Zimbabweans — the street vendor who continues trading, the small-scale farmer whose efforts sustain national food security, the entrepreneur expanding his/ her business as well as the family saving in both ZiG and US dollars because they believe tomorrow might be more stable than yesterday.
The stabilisation of the banking sector and the successes of NDS1 are inseparable from the general populace. What NDS2 now seeks to deliver is a future where the plans for continued growth are matched with opportunity. The numbers the minister shared carry stories that go beyond spreadsheets. The slowing pace of private-sector credit growth reflects a deliberate tightening of monetary policy to protect the currency from runaway expansion. This is a sign of lessons learned from past cycles of inflation.
Foreign currency now backs more than 82 percent of reserve money, giving the ZiG stronger credibility than previous local currencies. Broad money supply is growing, but in a controlled manner that protects stability. Eighty-eight percent of loans are denominated in foreign currency, a sign of trust in the banking environment. And the fact that more than three-quarters of lending is directed towards productive sectors — manufacturing, mining, agriculture and distribution — signals an economy shifting deliberately towards growth anchored in real production, not consumption.
This is precisely the environment NDS2 requires — stable, disciplined and increasingly production-oriented. The next five years will challenge Zimbabwe to deepen these gains. Stability is never a final achievement; it is a process that must be protected. Policy consistency, transparency in currency management and sustained support for the productive sectors will determine whether the country can transition from recovery to prosperity.
Infrastructure expansion must continue, but it must be supported by viable financing mechanisms. Agriculture must maintain productivity even in the face of climate variability. Technology, innovation and digitisation must be embraced not as luxuries but as tools of national competitiveness. Youth empowerment must become a central feature of economic policy, not a peripheral goal.
The story of Zimbabwe today is not one of triumph or arrival, it is a story of rebuilding, of rising cautiously but steadily, of correcting past mistakes and forging a new path defined by discipline and long-term vision. The launch of NDS2 will not automatically resolve every challenge, but it represents a collective commitment by Government, by the private sector, by communities and by individuals to move forward with purpose.
Zimbabwe is forging ahead, step by step, its scaffolding strengthened, its financial architecture stabilised, its development agenda clearer than it has been in years.
The journey towards Vision 2030 continues and NDS2 stands as the bridge between aspiration and achievement — a plan that seeks not only to consolidate progress but to turn it into prosperity that can be felt in every home, every business and every corner of the country. – The Patriot
Bongani Ndlovu