Zimbabwe's Economy Projected to Grow 6% in 2025
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- 14 Nov 2024
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Zimbabwe is on track to achieve a six percent economic growth in 2025, driven by favorable rainfall conditions, strategic government policies, and key reforms aimed at stabilizing and growing the economy. Finance Minister Professor Mthuli Ncube, speaking at a pre-budget seminar in Bulawayo, outlined the factors contributing to this projected growth. He emphasized that robust government policies and climate-smart agricultural practices would play a central role, with agriculture expected to expand by 12.8 percent after a drought-induced contraction in 2024.
Key initiatives like the PFumvudza/Intwasa scheme, which supports climate-resilient farming, and investments in mechanization, irrigation, and extension services, are set to boost agricultural output significantly. In addition, a stable electricity supply, exchange rate stability, and controlled inflation are anticipated to create a resilient economic environment.
Ncube also detailed the 2025 National Budget, which allocates ZWG140.5 billion in expenditures focused on employee compensation, operational expenses, and capital investments. The government aims to limit the budget deficit to under three percent of GDP, aligning with its fiscal discipline commitment. Moreover, new tax reforms will support revenue generation by introducing digital tax administration and automated registration for small and medium enterprises (SMEs), thus streamlining tax collection processes.
Looking ahead, the government’s strategy will emphasize sectors with high growth potential, such as ICT, electricity, and mining. These measures are integral to Zimbabwe’s Vision 2030 agenda, which aims to establish a prosperous and resilient economy by strengthening agriculture, infrastructure, and targeted reforms.
