HARARE – Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube has presented the 2025 National Budget, designed to stabilise the economy and build resilience against future shocks.
Speaking at a post-budget breakfast meeting organised by Business Weekly in collaboration with the Confederation of Zimbabwe Industries (CZI) and his ministry, Minister Ncube outlined key allocations and strategies aimed at addressing pressing economic challenges.
Focus on Agriculture and Food Security
The budget allocates 11% of its resources to the agricultural sector, underlining the government’s commitment to food security and resilience in the face of climate change and economic uncertainties. This includes significant investments in irrigation systems to mitigate the impact of erratic weather patterns, particularly following an El Niño-induced drought that reduced economic growth from over 5% in 2023 to approximately 2% this year.
“Our citizens who depend on agriculture should expect maximum support, especially through irrigation investments, to ensure resilience and sustained productivity,” Ncube said.
Boosting Industrial Growth and Diversification
The 2025 fiscal plan also prioritises industrial diversification, proposing a development fund jointly managed by the Ministry of Finance and the Ministry of Industry and Commerce. The fund aims to catalyse investments in pharmaceuticals, automobile manufacturing, and other critical sectors to reduce reliance on imports and stimulate local production.
“This initiative will help establish industries like car and bus manufacturing while strengthening sectors deemed vital for the economy’s growth,” Ncube explained.
Strategic Asset Disposal and Debt Management
To finance key programmes and address the national debt, the government is exploring the strategic disposal of certain state assets. Proceeds will be channelled toward agriculture, food security, infrastructure, health, and education, as well as servicing national debt to reduce interest burdens.
“The issue of debt is critical—it’s an albatross that must be removed from our necks to allow economic progress,” Ncube said.
Mining Sector Challenges and Opportunities
The minister expressed concern over declining global demand for key minerals, a critical component of Zimbabwe’s export earnings, which account for over 60% of the total. Falling demand from major markets such as China has impacted prices for minerals like lithium, palladium, and platinum, though gold remains a notable exception with strong performance this year.
Environmental and Health Initiatives
The 2025 budget introduces measures to address environmental concerns and promote public health. A tax on plastic carrier bags is set to encourage environmental sustainability, avoiding outright bans to protect local industries. Additionally, taxes on unhealthy foods aim to promote healthier lifestyles.
“These progressive taxes are part of a broader strategy to ensure environmental sustainability and improve public health outcomes,” Ncube stated.
Equitable Development Through Devolution
The budget also allocates resources to advancing the devolution agenda, ensuring equitable development across all regions and preventing marginalisation in national growth initiatives.
Minister Ncube emphasised the government’s commitment to balancing economic priorities while fostering resilience. “The 2025 budget is designed to stabilise the economy, grow new industries, and build the resilience needed to withstand future shocks,” he concluded.
As Zimbabwe navigates complex economic challenges, the proposed measures in the 2025 budget signal a strategic approach to fostering growth, resilience, and equity across key sectors.
