Online Reporter
Nelson Gahadza
Senior Business Reporter
Business leaders have said that Zimbabwe’s improving macroeconomic stability requires the Government to now focus on sustaining the gains through consistent policy implementation, improved access to productive financing, tax reforms and support for industry, if the economy is to achieve durable growth.
Speaking during the 2026 Mid-Term Post-Budget breakfast meeting, panellists from the Zimbabwe National Chamber of Commerce (ZNCC), the Institute of Chartered Accountants of Zimbabwe (ICAZ) and the Confederation of Zimbabwe Industries (CZI) said the country’s economic fundamentals had improved markedly, but cautioned that maintaining stability would be critical.
ZNCC vice-president for the Mashonaland Region, Mr Ephraim Chawoneka, described the Mid-Term Budget Review as a credible macroeconomic stabilisation programme that had brought fiscal and monetary authorities into alignment, creating a more predictable operating environment for business.
“We assessed the budget against the National Development Strategy and the Zimbabwe National Industrial Development Policy, and what we have seen is a credible macroeconomic stabilisation story,” he said.
He added: “The alignment between fiscal and monetary policy is encouraging, because in the past the two were not always speaking to each other. Inflation has fallen sharply, revenue collections have exceeded targets, electricity supply has improved, exports are rising and manufacturing capacity utilisation is increasing. These are all positive indicators for industry.”
However, Mr Chawoneka said industry’s main concern was ensuring that stability was sustained over the long term through effective implementation of Government programmes.
“Our issue now is sustainability. The reforms are welcome, but implementation remains critical. We have an Industry Development Fund, but the pace at which resources are being disbursed is still too slow. With improved power supply, we should actually be talking about scaling up industrial financing rather than struggling to utilise the available funds,” he said.
He also urged the Government to simplify tax administration, saying businesses continued to grapple with complex tax computations despite efforts to improve the ease of doing business.
ICAZ chief executive, Mr William Mandisodza, said Zimbabwe’s improving macroeconomic environment was beginning to restore confidence among businesses and investors, particularly through increased financial stability.
“What we are seeing today provides a solid foundation for sustainable growth. In the past, businesses struggled to make long-term investment decisions because of instability. Today, companies are beginning to manage and plan with greater certainty, and that is something we must preserve,” he said.
Mr Mandisodza said policy consistency would be critical in maintaining investor confidence, and welcomed the operationalisation of the Zimbabwe Stock Exchange’s SME-focused platform as an important avenue for widening access to capital.
“Our economy is dominated by small and medium enterprises. We need innovative financing platforms that encourage SMEs to formalise and access long-term capital. If we incentivise businesses to utilise these markets, we will unlock significant economic growth,” he said.
CZI economist, Dr Cornelius Dube, said stronger Government revenue collections reflected improved economic activity, but stressed that businesses expected the additional resources to translate into better public services and faster settlement of obligations owed to suppliers.
“The improvement in revenue collections is encouraging and confirms that the economy is responding positively. The expectation now is that improved revenue should translate into improved service delivery and prompt payments by Government, because delayed payments impose significant costs on businesses,” he said.
Mr Dube said the stable economic environment had contributed to stronger corporate profitability, reflected in increased corporate tax collections.
“If the operating environment remains stable and conducive, businesses will continue to grow and Government revenue will also continue to increase. Stability benefits both the private sector and the fiscus,” he said.
He, however, called on the Treasury to reconsider the increase in Value Added Tax from 15 percent to 15.5 percent, arguing that revenue performance suggested the adjustment may have been unnecessary.
“We believe there is room to review VAT back down to 15 per cent, because collections have remained strong even after reductions in other taxes. Maintaining a competitive tax regime will help sustain economic activity,” said Mr Dube.
