Staff Reporter
Zimbabwe’s 2025 National Budget, presented by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube last month, outlined a strategy to build economic resilience and address external pressures through increased investments in agriculture, infrastructure, and energy.
The budget presentation was made as the country navigates economic recovery amidst drought, global commodity price fluctuations, and geopolitical challenges.
Economist and Reserve Bank of Zimbabwe Monetary Policy Committee Member, Persistence Gwanyanya told this publication yesterday that Zimbabwe has made notable progress since the introduction of economic reforms in 2018 under Vision 2030.
Despite external shocks such as droughts, cyclones, COVID-19, and depressed commodity prices, the economy has achieved cumulative growth of 10.8 percent.
Gwanyanya noted that agriculture remains a vital pillar of Zimbabwe’s economy and has seen increased financial support, particularly for irrigation infrastructure and climate-proofing initiatives.
He highlighted that wheat production has significantly rebounded, with output expected to reach 600 000 tonnes this year, marking a return to surplus production.
“With increased financial support towards agriculture, especially in irrigation and productivity, the sector’s return to its former glory is quite possible,” Gwanyanya said.
Treasury has also supported 1.1 million hectares of cereals, cotton, oilseeds, and pulses for the 2025 farming season through the Pfumvudza/Intwasa programme.
Government’s target to increase irrigable land to 496 000 hectares from the current 217 000 hectares is expected to stabilize cereal production, particularly maize, which dropped to 573 000 tonnes in 2024 due to the El Niño-induced drought.
Gwanyanya added that projections for normal to above-normal rainfall in 2025 could see the sector grow by 12.8 percent, contributing to an anticipated overall economic growth rate of 6 percent.
Gwanyanya said the Hwange Power Station’s Unit 7 and 8 expansions, which added 614 MW to the national grid, have been critical in stabilising power supply.
“I shudder to think where we would have been as an economy had we not invested in Hwange Unit 7 and 8 expansions,” he said.
Gwanyanya said Zimbabwe’s mining sector has shown resilience, with projected growth of 2.3 percent in 2024 despite global price declines.
The sector is expected to expand by 5.8 percent in 2025 as mineral prices recover.
In the manufacturing sector, Gwanyanya acknowledged existing challenges such as power shortages and informalisation, but noted encouraging developments, including the US$1.5 billion Dinson Iron and Steel Company (DISCO Steel) plant.
“The DISCO plant is a game changer for Zimbabwe and the region,” he said, highlighting its role in addressing unemployment and driving industrialisation.
Zimbabwe’s total debt stood at US$21.1 billion as of September 2024, with arrears and penalties amounting to US$10.4 billion.
Gwanyanya said the sixth high-level structured negotiations for arrears clearance, held in November 2024, marked positive progress towards resolving the debt crisis.
He also applauded Government’s commitment to fiscal discipline, with the budget deficit projected at 1.4 percent in 2024, down from 6.1 percent in 2023.
Gwanyanya said this reflects efforts to maintain deficits within the Southern African Development Community (SADC) convergence target of 3 percent.
The economist emphasised that Zimbabwe’s 2025 National Budget provides targeted interventions in key sectors, including agriculture, infrastructure, and energy, which are expected to drive sustainable growth and structural transformation.
He added that continued focus on these areas would be critical for achieving Vision 2030.
