Zimbabwe’s Treasury is set to maintain its current economic strategy when Finance Minister Professor Mthuli Ncube presents the 2026 Mid-Term Budget Review.
The government is expected to focus on stability rather than announce major policy changes. Officials believe the current framework has created confidence among businesses and investors.
Professor Ncube said maintaining consistency remains important for economic planning. He believes the existing approach has helped strengthen Zimbabwe’s macroeconomic environment.
Government confident in economic growth outlook
The Finance Minister said the economy remains stable despite global challenges. He added that there is no need to change direction at this stage.
He said: “The ship is sailing, it’s steady. The economy seems to be very stable; there’s stability, and we have no reason to disturb or change course. Economic agents should not expect us to change our course during those announcements. For this year, 2026, we’re projecting the economy to grow at 5%, slightly down from the 8.3% experienced last year.
“We expect this 5% rate of growth to be achieved. In the first quarter of this year, the quarter-on-quarter annualised growth rate was 6.8%. If I look at the same quarter last year in 2025, that growth was just above 4%. So, just given that kind of scenario, and the fact that the growth last year was 8.3%, we feel that really with this good start in the first quarter of this year (6.8% rate of growth), surely a 5% rate of growth for the whole year should be achievable,” he said.
Furthermore, Ncube highlighted key sectors supporting economic expansion. These include agriculture, mining, manufacturing, tourism and infrastructure development.
He also pointed to improved electricity availability as a boost for industrial activity. Additionally, stronger gold prices and recovering base metals have supported mining growth.
The minister said manufacturing now contributes 17 percent to GDP. He added that infrastructure projects are driving investment, job creation and value addition.
Treasury targets continued economic stability
The Mid-Term Budget Review is also expected to reinforce fiscal discipline. Treasury wants to preserve exchange rate stability and maintain low inflation.
Professor Ncube said foreign currency reserves have improved significantly. Zimbabwe currently holds about US$1.6 billion in reserves, covering roughly one-and-a-half months of imports.
He said: “The objective of achieving macroeconomic stability has been met, and we want to maintain that macroeconomic stability. It’s a key objective of government. It gives the whole economy a sense of certainty, a sense of predictability. Companies can plan when we have macroeconomic stability, when you know the exchange rate is stable, and inflation is also stable.
“We will carry on with this policy. It has arisen from making sure that we have a prudent fiscal policy, we have equally prudent and tight monetary policy, and that coordination between the two has been critical. The growth of our reserves now at one-and-a-half months of import cover, US$1.6 billion worth of foreign reserves, is bolstering our domestic currency, the ZiG,” he explained.
Ncube said responsible fiscal management has supported the stability of the ZiG currency. He added that avoiding excessive budget deficits remains a priority.
The minister noted that the exchange rate has stayed around ZiG26 against the US dollar. Meanwhile, average inflation between January and June remained below five percent.
However, he warned that external pressures could affect the economy. These include geopolitical conflicts, fuel price changes and possible El Niño effects.
The government will continue using tax measures to protect consumers from rising costs. As a result, Treasury aims to balance stability with support for economic growth.
The upcoming budget review is expected to reassure investors. It will also confirm government’s commitment to maintaining its current economic path.
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