FINANCE Minister Professor Mthuli Ncube has pledged that the government will maintain the macroeconomic policies that have underpinned recent economic stability, saying the focus for the remainder of 2026 will be on sustaining growth, attracting investment and strengthening social protection programmes.
Presenting the 2026 Mid-Term Budget and Economic Review in Parliament on Thursday at the New Parliament Building, Ncube said the government would intensify programmes aimed at supporting vulnerable households while improving access to essential public services in pursuit of inclusive and equitable development.
Delivering the statement under the theme, "Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030," Ncube said Zimbabwe's economy had demonstrated remarkable resilience during the first half of 2026 despite global economic uncertainty, conflict in the Middle East and disease outbreaks such as Ebola, which negatively affected tourism and hospitality.
He attributed the country's performance to strong fiscal revenue collection and sustained macroeconomic stability, particularly in inflation, exchange rate management and currency stability.
Follow us on WhatsApp | LinkedIn for the latest headlines
Zimbabwe's annual inflation rate in the local unit, ZWG slowed from a peak of 95.8% in July 2025 to 15% in December 2025, before averaging 4.2% during the first seven months of 2026.
According to Ncube, this marked the first time in more than three decades that Zimbabwe had recorded average single-digit inflation, describing it as evidence that the government's economic policies were producing results.
Gross Domestic Product (GDP) growth is projected to moderate to 5% in 2026, down from 8.3% in 2025.
"The slowdown reflects the high base of last year but is still supported by buoyant mineral commodity prices, a favourable agricultural season, and reforms to ease doing business through the rationalisation of licences, fees and permits," Ncube said.
Looking ahead, he said economic growth would increasingly be driven by higher public and private investment in value addition and beneficiation.
"Growth is expected to be anchored by increased public and private investment in value addition and beneficiation, in line with the National Development Strategy 2 (NDS2) objective to reduce dependence on raw commodity exports," he said.
Ncube said Zimbabwe now enjoys one of the most favourable macroeconomic environments in the region, characterised by low and stable inflation, exchange rate stability and growing confidence in the Zimbabwe Gold (ZiG) currency.
He noted that month-on-month ZiG inflation remained below 0.5% throughout the first half of the year, with the exception of a temporary rise in April, which he attributed to higher international oil prices triggered by conflict in the Middle East.
"This, together with ongoing re-engagement efforts, has improved investor confidence. Foreign Direct Investment rose to US$965 million in 2025 from US$597 million in 2024, the highest in several decades, with mining and manufacturing leading the inflows," Ncube said.
The minister said agriculture rebounded strongly, growing by 27.9% in 2025 following recovery from the 2024 drought and is projected to expand by 6.9% in 2026.
Mining, one of Zimbabwe's strongest-performing sectors, recorded 10.4% growth in 2025 and is expected to grow by 5.6% this year, driven largely by gold production, which is forecast to increase to 55.6 tonnes from 50 tonnes in 2025.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
On the international front, Ncube highlighted Zimbabwe's election as a non-permanent member of the United Nations Security Council in June 2026 and its admission into the New Development Bank in July 2026 as major diplomatic milestones.
He also noted that Zimbabwe ranked third in Sub-Saharan Africa for budget transparency, behind South Africa and Benin, while continuing to meet key international standards.
Although he acknowledged the progress made, Ncube said the government needed to accelerate reforms to meet its long-term development targets.
"As we move into the second half of the year, I am confident that we will galvanise the collective energies of all Zimbabweans towards the realisation of Vision 2030 - towards a prosperous and empowered upper middle-income society," he said.
