HARARE – Education has emerged as the top priority in Zimbabwe’s 2025 national budget, receiving the largest allocation of ZWL$56.96 billion across the primary, secondary, and tertiary sectors.
The budget, totalling ZWL$276 billion, was presented in Parliament on Thursday by Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube.
Under the theme “Building Resilience for Sustained Economic Transformation”, the budget aims to bolster the country’s economic growth, targeting a 6% growth rate in 2025. It also introduces measures to increase disposable income for workers, including raising the tax-free threshold to ZWL$2,800.
Currency Stabilisation
Prof. Ncube outlined efforts to stabilise the domestic currency, the Zimbabwe Gold (ZWG), which was introduced in April 2024 at an initial official exchange rate of US$1:ZWG13.5. While the ZWG initially helped stabilise prices, challenges in September forced a devaluation to US$1:ZWG24, where it currently trades.
However, significant disparities persist, with parallel market rates ranging between US$1:ZWG35 and US$1:ZWG40. The budget aims to anchor currency stability further and align official and parallel market rates.
Sector Allocations
In line with its prioritisation of human capital development, the Ministry of Primary and Secondary Education received ZWL$46.64 billion, with Higher and Tertiary Education securing ZWL$10.32 billion. Together, the education sector accounted for approximately 20.6% of the national budget.
Other key allocations included:
- Health: ZWL$28.32 billion
- Agriculture: ZWL$22.93 billion
- Defence: ZWL$18.05 billion
- Home Affairs and Cultural Heritage: ZWL$16.18 billion
- Office of the President and Cabinet: ZWL$10.57 billion
- Finance Ministry: ZWL$9.18 billion
Economic Outlook
The budget seeks to address critical areas, including health, agriculture, and infrastructure, to drive economic transformation. Prof. Ncube highlighted the importance of maintaining fiscal discipline and stabilising inflation, noting that these factors are pivotal for sustained economic growth and improved living standards.
Public Reactions
The prioritisation of education and health has been welcomed, with stakeholders applauding the focus on essential services. However, there is cautious optimism about the budget’s ability to address currency volatility and disparities in exchange rates.
Economic analysts have also raised concerns about the viability of funding the ambitious ZWL$276 billion budget, given the country’s limited fiscal space and reliance on domestic revenue mobilisation.
Despite these challenges, the government is optimistic that the 2025 national budget will pave the way for economic resilience and sustained growth.