By a Correspondent
Zimbabwe’s economy is projected to grow by 5 percent in 2026, driven by strong agricultural output, expanding mining production, macroeconomic stability and continued investment in infrastructure, Treasury has said.
Presenting the 2026 Mid-Term Budget and Economic Review in Parliament on Thursday, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the economy had remained resilient despite global headwinds, including conflicts in the Middle East and Europe and disease outbreaks that have disrupted international markets and tourism.
The projected growth follows an 8.3 percent expansion recorded in 2025, with Prof Ncube saying Zimbabwe’s economic outlook remained among the strongest on the continent.
He attributed the 2026 growth forecast to favourable agricultural output, firm mineral commodity prices, increased investment and Government reforms aimed at improving the ease of doing business.
The Minister said macroeconomic stability had also improved significantly, with annual inflation in local currency terms falling from a peak of 95.8 percent in July 2025 to 15 percent by December 2025.
Average annual inflation during the first seven months of 2026 stood at 4.2 percent.
Prof Ncube said this marked the first time in more than three decades that Zimbabwe had sustained single-digit inflation in domestic currency terms, which he attributed to the effectiveness of Government’s macroeconomic policies.
Agriculture remains a major driver of economic growth, with maize production expected to reach 2.4 million tonnes.
The dairy sector has also recorded significant gains, with milk production projected at 167 million litres this year, up from 96 million litres in 2021, putting Zimbabwe on a path to self-sufficiency in milk production.
Mining remains one of the fastest-growing sectors, with output expected to increase by 5.6 percent in 2026.
Gold production is projected to rise to 55.6 tonnes, from 50 tonnes recorded last year, while mineral exports generated about US$1 billion during the first half of the year.
The manufacturing sector is projected to grow by 5.2 percent, supported by increased investment and improved capacity utilisation, which is expected to reach 63.5 percent this year.
Government has approved US$85 million under the Industrial Development Fund for 15 companies, with US$33.1 million already disbursed.
The economy recorded annualised quarterly GDP growth of 6.8 percent during the first quarter of 2026, reinforcing Treasury’s confidence that the annual growth target remains achievable.
Prof Ncube also highlighted progress in infrastructure development, including road rehabilitation, dam construction, rural electrification and digital connectivity programmes.
More than 260 electrification projects have been completed, while major projects such as the Gwayi-Shangani and Kunzvi dams are nearing completion.
Treasury also ruled out the need for a supplementary budget this year, with budget utilisation standing at 42.5 percent by the end of June.
Despite revenue losses of more than US$74 million arising from disruptions in global fuel markets linked to the conflict in the Middle East, Prof Ncube said the approved budget remained adequate to finance planned Government programmes and projects.
He said Government would continue to prioritise fiscal discipline, infrastructure development and investment-led growth as Zimbabwe pursues its Vision 2030 development agenda.
