Online Reporter
Business Reporter
Zimbabwe’s economy outperformed expectations in the first quarter of the year, with revenues coming in 24 percent above target and 12 percent above prior year, Treasury officials confirmed.
Presenting a robust assessment of the nation’s fiscal health on the sidelines of the IMF-World Bank spring meetings, Minister Ncube revealed that the country’s growth for 2025 would surpass the previously projected 6,6 percent, with final figures to be published next month. He also maintained a confident 5 percent growth target for 2026, dismissing concerns over global economic headwinds.
“We did better than the 6,6 percent for sure,” Minister Ncube said. “Our projection for 2026 is 5 percent, which was always conservative. When agriculture performs, many other sectors – manufacturing, power, tourism – also do well. We don’t see a big impact from global shocks.”
The minister added that the current account surplus is expected to double from US$1 billion to over US$2 billion this year, while the budget deficit remains contained at no more than 0,5 percent of GDP.
Finance Permanent Secretary George Guvamatanga attributed the revenue surge to sweeping efficiency gains, particularly the introduction of the Zimbabwe Revenue Authority’s (ZIMRA) new digital tax collection system, known as Tax and Revenue Management System (TaRMS).
“The new digital system has actually increased our tax collection efficiency,” Mr Guvamatanga said. “There has also been increased revenue from growth in the mining sector, driven by commodity prices, but also a much tighter tax collection regime.”
He cited stricter border controls, a reduction in smuggling, and measures to combat tax avoidance as key factors. “In the past, it was very easy to obtain a tax clearance certificate even if you were non-compliant. The new system has made it very, very difficult to do so,” he added.
Mr Guvamatanga said the strong fiscal performance meant the Government could balance its books and continue critical programmes, despite having surrendered some revenue to cushion citizens from fuel price increases.
