Online Reporter
Business Writer
Zimbabwe is seeking to strengthen its economic resilience by expanding food security measures, boosting domestic production and mobilising private capital for infrastructure, as Treasury targets growth of at least 5 percent in 2027.
The measures are contained in the 2027 Budget Strategy Paper, which outlines a six-pillar approach to protecting the economy from climate-related disruptions, commodity price volatility and energy shocks.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government would give the private sector a bigger role in responding to food security challenges, including allowing private grain imports and removing duties on fertiliser.
“We are going to allow for importation of grain by the private sector. So, the private sector is going to be a partner in our response to the climate shocks, but also to the global shocks,” Minister Ncube said.
The Treasury plans to establish strategic grain reserves of at least 500 000 tonnes, largely maize and some wheat, to support vulnerable households during the peak drought period between October and March.
The Government will also expand irrigation, strengthen the Pfumvudza/Intwasa programme and provide farmers with seed, fertiliser, lime and extension services.
“Another pillar to our six-pillar strategy is supporting the Pfumvudza/Intwasa programme. So, we give out seed, fertiliser, including lime to treat the acidic soils, and just agricultural extension services,” he said.
The strategy also includes sovereign drought insurance and stronger early-warning systems, including investment in additional weather radar equipment.
To guard against weaker mineral prices, the Treasury plans to promote beneficiation and increase domestic fertiliser production using coal and phosphates.
“For commodity shocks, because we also expect a drop in the general prices of base metals and other minerals, we are focusing on beneficiation, so that we can maximise the value of what is exported,” Minister Ncube said.
The Government will also continue using taxes and levies to cushion consumers and businesses from international fuel price movements, while petrol blending could reduce pump prices by up to 15 US cents a litre.
Infrastructure financing is another major focus, with the Treasury seeking to attract more private investment into major projects.
“We are very determined, going forward, to crowd in the private sector in our infrastructure finance agenda,” Minister Ncube said.
An infrastructure fund is being developed to finance projects such as the Bulawayo-Victoria Falls and Harare-Chirundu roads, dams, irrigation schemes and health infrastructure.
The Treasury also intends to deepen capital markets, strengthen the banking sector and expand financing for small businesses through the National Venture Fund.
The strategy seeks to keep the 2027 budget deficit within 0,5 percent while building stronger buffers ahead of future economic shocks.
