Zimbabwe's Treasury has revealed that the forthcoming 2025 national budget will focus on enhancing resilience to support structural economic transformation and build upon the advancements made under the National Development Strategy 1 (NDS1).
Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube stated that the budget aims to strengthen the economy against various domestic and international challenges during a lecture at the Zimbabwe National Defence College in Harare.
With Zimbabwe's economy now expected to grow by 2% this year, revised down from the initial projection of 3.5% due to severe drought, the Treasury forecasts a significant recovery in 2025, predicting growth of 6%, predominantly attributed to expected advancements in the agricultural sector, The Zimbabwe Mail reports.
Professor Ncube stressed that the forthcoming budget will incorporate measures aimed at strengthening the country's economic resilience against shocks, especially those caused by climate-related disruptions.
“We are focusing on resilience because we have been impacted by climate changes this year. This includes investments in irrigation, drought-resilient seeds and crops, conservation agriculture through initiatives like Pfumvudza/Intwasa, and developing insurance products for farmers. These are key strategies for building resilience,” he said.
The budget is anticipated to allocate substantial resources to agriculture, particularly aimed at enhancing water infrastructure and promoting environmental conservation to fully utilise the country's natural resources. According to Professor Ncube, these investments are crucial for achieving long-term resilience and sustainable growth, especially considering the challenges presented by climate change.
Furthermore, the Treasury plans to bolster the stability of Zimbabwe’s currency by underpinning its value with precious metals and foreign currency reserves. There will also be a strong emphasis on increasing exports to strengthen currency resilience, which is seen as a fundamental element for economic growth and stability.
In addition, Professor Ncube highlighted that Zimbabwe’s economic health has improved due to strong export growth in sectors such as mining, along with consistent remittances from the diaspora.
These inflows have played a crucial role in sustaining a positive current account balance, with the surplus now projected to exceed initial estimates. Originally expected to decrease to $45 million, revised figures indicate a surplus approaching $100 million, fuelled by higher gold earnings and increased export values.
“In the last six years, we have maintained a positive current account surplus. This year’s current account is bolstered by gold earnings, and the surplus could reach as much as $100 million, reflecting the resilience of our external balances,” Professor Ncube added.