Zimbabwe Closes 2025 On a High

1 January 2026

AS the curtain fell on 2025 last night, the administration of President Mnangagwa had delivered on a raft of key signature projects, setting a foundation of high hopes for the successful implementation of the second economic blueprint, the National Development Strategy 2, which begins today.

Guided by the mantra of leaving no one and no place behind, the Second Republic has translated its vision into tangible action, uplifting socio-economic conditions through massive investments in infrastructure, food security, energy, agriculture and social services.

This push is aligned with the national vision of transforming Zimbabwe into a prosperous and empowered upper-middle-income society by 2030, with this new wealth fairly distributed and not concentrated in the hands of a tiny elite.

In a significant year-end move to improve the ease of doing business, the Government approved sweeping reductions, consolidations, and the scrapping of various burdensome Government and local authority fees, licences and permits.

Keep up with the latest headlines on WhatsApp | LinkedIn

These fees had long been an albatross, stifling business through exorbitant costs and bureaucratic red tape. The rationalisation process is set to continue into the new year, reinforcing the Government's commitment to being truly open for business.

Infrastructure development stood out as a major highlight of the year. The flagship Harare-Beitbridge highway modernisation is nearly complete, with approximately 492.9 kilometres of the 580km road now rehabilitated. This project, part of the broader Emergency Road Rehabilitation Programme 2 (ERRP2), was complemented by work on numerous urban and rural roads. Other critical transport projects advanced include the Harare-Chirundu and Bulawayo-Victoria Falls highway rebuilds.

Urban congestion received a landmark solution with the completion of the multi-million-dollar Trabablas Interchange in Harare, which has eased traffic flow and become a local attraction.

Construction has also commenced on the Mabvuku interchange, with more planned to improve connectivity.

Border modernisation took a leap forward with the expanded and upgraded Beitbridge Border Post, streamlining customs and boosting regional trade.

Under NDS2, a further US$300 million has been allocated to overhaul the Chirundu and Forbes border posts next year, with Nyamapanda and Kanyemba borders also slated for rehabilitation.

In aviation, upgrades at the Robert Gabriel Mugabe International Airport and Victoria Falls Airport are enhancing capacity to attract more tourists and investment.

The new, magnificent Parliament Building in Mount Hampden stands as a signature project, anchoring the development of a new capital city hub.

On housing, the Government advanced projects including flats in Dzivarasekwa, Zvishavane and Marondera, and homes for flood victims in Binga, progressing toward an ambitious national target.

Ensuring food security remained a top priority, driven by dam construction and irrigation expansion. Strategic projects like Kunzvi Dam and the Gwayi-Shangani Dam are critical to ending water challenges in Harare and Bulawayo. Multiple other dams were completed or are underway, supporting climate resilience and irrigation.

The Government revitalised irrigation schemes nationwide, targeting 350 000 hectares under irrigation by 2026. The climate-proofed Pfumvudza/Intwasa programme, alongside mechanisation initiatives like the John Deere facility, contributed to record maize and wheat yields, achieving national food self-sufficiency. The issuance of title deeds further secured land ownership, making farmland bankable.

Complementing this, the Presidential Borehole Drilling Programme provided clean water to over 700 villages, intending to reach all 35 000 villages.

President Mnangagwa also introduced title deeds to farmers for bankability and economic empowerment, fulfilling promises of land reform legitimacy and transforming land from mere revolutionary symbols to concrete assets.

Zimbabwe's 2025 tobacco season set new national records, with over 352 million kilograms sold, generating a historic $1.2 billion in revenue, driven by strong demand and improved production from smallholder farmers, though concerns linger about climate change risks and sustainable practices.

This output marks a massive increase over the previous year, cementing tobacco as a crucial foreign currency earner for the country despite challenges like drought.

The country recorded the same impressive story in winter wheat, producing over 639 000 tonnes, the highest yield ever since commercial wheat production started in 1966, exceeding national needs and marking the third consecutive year of record output, driven by irrigation, mechanisation, and farmer support. Now research has found suitable varieties of hard durum wheats that can fill the last gaps and end the imports of this variety, which forms about 30 percent of what bakers and pasta makers need.

A booming agriculture sector, accompanied by increased mining output, alongside stable gold prices and remittance inflows, is at the centre of a strong GDP growth for 2025, estimated at around 6 percent to 6.6 percent.

Government monetary and fiscal policies have stabilised the economy and local currency (ZiG), with foreign currency inflows reaching US$10.4 billion by August 2025, up from US$8.3 billion in the same period the previous year.

The President Mnangagwa's administration has also guided the country to economic stability, with annual inflation plummeting from nearly 95.8 percent in July 2025 to 15 percent in December 2025 and soon to reach single figures as the higher monthly rates early in 2025 are overtaken by much lower rates.

While month-on-month inflation averaged approximately 0.4 percent to 0.6 percent for much of the year, with instances of deflation, this was attributed to a monetary policy by the Reserve Bank of Zimbabwe, improved domestic food supply following a favourable agricultural season, and stabilised foreign currency availability.

Towards the empowerment of youths, the President also launched a US$2 million Presidential Youth Empowerment Revolving Fund and a US$5 million Presidential Youth Mining Equipment Scheme as he continues to empower young people. A similar initiative for the empowerment of women was also launched.

The energy sector saw substantial growth with the full commissioning of 600MW from Hwange Thermal Power Station Units 7 and 8 and more power generated by Kariba South as Zambezi flows improve. To boost renewable energy, plans were advanced for a 600MW floating solar plant on Lake Kariba.

Mining investment surged, particularly in lithium and iron ore. Major projects like the Manhize Steel Company and the Mapinga Mines-to-Energy Industrial Park underscore the sector's dynamism.

Social services were bolstered by the construction of over 500 new schools, 1 000 classroom blocks, and more than 121 new clinics, with many health facilities receiving solar power. Major central hospitals, including Parirenyatwa and United Bulawayo Hospital, underwent significant upgrades.

The digital economy gained momentum through community information centres, boosting rural internet connectivity, the promotion of e-government services and the launch of the Zimbabwe National Geospatial and Space Agency.

The devolution agenda advanced meaningfully, decentralising services like passport and birth certificate processing and empowering local governments in development decision-making.

Collectively, these milestones have propelled Zimbabwe's economy forward, laying a concrete pathway toward the achievement of Upper Middle-Income status by 2030 as the nation now turns its focus to the implementation of NDS2.

At least 527 high-impact infrastructure projects across various sectors (energy, ICT, transport, water, sanitation, agriculture, health, education and housing) have been identified for priority.

AllAfrica publishes around 400 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.