Story by Yolanda Moyo
ZIMBABWE’s economy is projected to grow by five percent in 2026, with the Treasury identifying mining, agriculture, manufacturing, and infrastructure development as the main drivers of expansion.
This comes as the final roadmap to Vision 2030, which targets an upper middle-income economy, has been unveiled in Bulawayo this Wednesday at the 2026 national pre-budget seminar.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, detailed a fiscal plan that is both disciplined and growth-oriented.
“The economy is projected to grow by five percent next year, the fiscal framework will maintain discipline with a deficit below three percent of GDP, further noting that macroeconomic stability remains the cornerstone of the reform agenda, with the Zimbabwe Gold (ZiG) currency anchoring exchange rate stability, declining inflation, and renewed investor confidence. Inflation is expected to end 2025 at 22.8 percent and reach single digits by 2027 under continued fiscal prudence,” he said.
The agricultural sector will receive enhanced funding to sustain its transformation into a multi-billion-dollar sector, while mining output is projected to grow by 6.2 percent with infrastructure projects such as the Gwayi-Shangani and Kunzvi Dams, energy expansion, and transport corridor modernisation central to the government’s plans.
“The Agriculture sector, the engine of rural livelihoods, is set for enhanced funding to drive its transformation into a US$10.3 billion industry, with key focus areas being irrigation expansion and ensuring full wheat self-sufficiency. The robust Mining sector, driven by gold, platinum, lithium, and coal, is forecast to expand by 6.2%. Focus is also on completing Gwayi-Shangani and Kunzvi Dams and modernising transport,” Professor Ncube said.
Furthermore, significant resources will be channelled into youth empowerment, innovation, and skills development to leverage the nation’s demographic dividend.
The Speaker of the National Assembly, Advocate Jacob Mudenda weighed in calling for increased domestic resource mobilisation.
“To achieve a robust Budget, there is need to accelerate domestic resource mobilisation. This is so because, according to the 2025 Mid-Term Budget and Economic Review, revenue collections reached ZiG$101.2 billion against a target of ZiG$118.1 billion. Expenditures reached ZiG 98 billion against a projected ZiG 127.5 billion. These figures demonstrate some prudential fiscal management while simultaneously revealing the persistent chasm between revenue generation capacity and expenditure requirements for optimal service delivery,” he said.
“The African Development Bank articulates this conundrum lucidly by observing that “The implementation of Agenda 2030 and Agenda 2063 hinges on Africa’s ability to mobilise sufficient and timely financial resources” for infrastructure development, human capital formation and economic transformation. The National Micro, Small and Medium Enterprise (MSME) Survey reveals that a staggering 85.7% of Zimbabwe’s 3.4 million of these enterprises operate in the fiscal shadows, beyond the reach of formal revenue streams. The 2026 Budget Strategy Paper commits the government to an aggressive formalisation campaign targeting 5 000 MSMEs registrations by 2026. This figure is gapingly paltry compared to the 3.4 million small-scale entrepreneurs.
“By using digital technology, that 5000 figure can be phenomenally upscaled to increase revenue inflows as part of compelling domestic resource mobilisation. In tandem, Parliament must also nudge the Zimbabwe Revenue Authority (ZIMRA) to expedite efforts to leverage Artificial Intelligence (AI) in transforming tax administration and improving revenue collection at our Border posts. Through the deployment of predictive analytics, blockchain technology and automated compliance monitoring. AI will enhance administrative efficiency and encourage voluntary compliance across all sectors of the economy, including the informal sector, thereby enhancing revenue streams.
“What are we waiting for? Beyond conventional tax revenue inflows, infrastructure development necessitates exploring alternative financing mechanisms that augment government financial resources while creating sustainable funding models for long-term development. Evidently, pension and insurance funds command substantial capital reserves that remain conspicuously underutilised for national development and infrastructure financing, now standing at 6% capacity utilisation against the 20% legally allowable threshold for expending in prescribed assets.”
Zimbabwe’s 2026 budget signals a clear message: growth that is inclusive, technology-driven, and firmly anchored in fiscal discipline is no longer just a vision, it is the country’s immediate roadmap to 2030.
