HARARE – Zimbabwe is gearing up for the unveiling of the 2025 National Budget, a crucial policy blueprint expected to address pressing economic challenges while fostering sustainable growth and investment. Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, is at the centre of expectations as the nation looks forward to strategies aimed at unlocking the country’s economic potential.
Amid fluctuating global commodity prices and regional electricity shortages, Zimbabwe remains focused on leveraging its rich resources in mining, agriculture, and tourism to drive development. The upcoming budget is seen as an opportunity to bolster resilience and attract investment across key sectors.
Calls for Strategic Fiscal Policy
Economic analysts have underscored the need for a balanced fiscal approach, urging the government to address immediate constraints while prioritising long-term growth. Tafara Mtutu, an economic analyst, emphasised the critical role of mining in the economy, advocating for measures to enhance the sector’s competitiveness.
“Reduced royalties during periods of low commodity prices demonstrate a commitment to fostering a business-friendly environment that ensures sustainability and growth,” said Mtutu.
Economic diversification, a recurring theme in previous budgets, is expected to remain a priority. Analysts are optimistic that policies fostering resilience and global competitiveness will feature prominently in the 2025 Budget.
Stakeholder Perspectives
The Zimbabwe National Chamber of Commerce (ZNCC) President, Tapiwa Karoro, highlighted the importance of shaping fiscal priorities to support businesses and the economy. He pointed to contentious tax reforms, such as the introduction of an excise duty on e-cigarettes, which has sparked debate.
“There is concern that the excise duty on e-cigarettes does not align with scientific evidence and may negatively impact innovation in the sector,” noted Karoro.
Economist Enoch Rukarwa urged the government to focus on formalising the informal sector and expanding the tax base through targeted reforms. “Enhancing the collection of presumptive taxes will foster inclusivity and broaden the tax net,” he added.
Financial Sector Reforms
The Bankers Association of Zimbabwe (BAZ) called for fiscal efficiency and measures to promote financial inclusion. They advocated for a reduction in the 2% Intermediated Money Transfer Tax (IMTT), arguing that it would drive formal transactions, reduce cash dependency, and strengthen revenue collection.
“Lowering the IMTT will encourage formal banking transactions, supporting economic stability and reducing risks associated with cash handling,” BAZ stated.
Karoro echoed these sentiments, expressing concern over the high cost of transaction taxes, which he said discourage digital payments and hinder the country’s competitiveness.
Pro-Business and Long-Term Strategies
Stakeholders like financial markets analyst George Nhepera and economic analyst Malone Gwadu stressed the need for pro-business policies, tax cuts in growth sectors, and targeted deregulation to boost economic confidence.
“Tax cuts and deregulation, if well-implemented, could catalyse growth in key sectors,” Nhepera said. Gwadu, meanwhile, called for policies focused on inflation control and exchange rate stability, highlighting manufacturing and tourism as sectors with high potential.
Balancing Austerity and Growth
While optimism surrounds the forthcoming budget, some experts, including Rukarwa, cautioned about potential austerity measures as the government aligns fiscal policies with contractionary monetary strategies.
“To complement a contractionary monetary policy, the government may need to maintain fiscal austerity,” Rukarwa observed.
The Road Ahead
As Zimbabwe awaits Minister Ncube’s presentation, expectations remain high for a budget that balances immediate fiscal needs with the long-term vision of economic transformation. Stakeholders hope the 2025 National Budget will reinforce commitments to stability, inclusivity, and prosperity, paving the way for sustained growth.
This article is adapted from reporting by The Herald.