daglous masveta
Nqobile Bhebhe
Bulawayo Bureau
THE economy is projected to experience a substantial 6 percent growth next year, driven by the anticipated normal to above-normal rainfall, which will boost agricultural output, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said yesterday.
In addition, the economy is expected to maintain a steady 5 percent growth rate beyond next year.
Prof Ncube attributed this resilience to the effective implementation of strategic Government policies and reforms.
He made these remarks during a pre-budget seminar in Bulawayo.
“The effective implementation of these policies has led to the development of a robust economic environment, characterised by adaptability and the capacity to withstand these external shocks ensuring long-term prosperity for the nation,” said Prof Ncube.
“Going forward into 2025, the economy is expected to recover on account of expected better rainfall season.”
The seminar, running under the theme, ‘Building resilience for sustained economic transformation’, highlighted that the stability of electricity supply, a stable exchange rate, and controlled prices would further contribute to economic growth.”
Prof Ncube emphasised the Government’s commitment to fiscal consolidation, targeting a budget deficit of less than three percent of GDP by refocusing expenditure on key assets that support economic growth in line with the National Development Strategy 1 (NDS1).
He noted that despite challenges posed by supply chain disruptions, geopolitical tensions and an El-Niño-induced drought, Zimbabwe’s economy has in the first 10 months of the year demonstrated remarkable resilience. Looking ahead, 2025 promises recovery, supported by a favourable rainfall season and strategic Government initiatives.
The 2025 National Budget will prioritise several areas, focusing on agriculture (projected to grow by 12,8 percent), electricity (10,6 percent), ICT (9,9 percent), and mining (5,6 percent).
These sectors will be the main drivers of growth, with wholesale and retail, mining, agriculture, and manufacturing expected to contribute significantly to GDP.
Prof Ncube attributed agriculture’s projected growth to climate-smart conservation agriculture practices under the Pfumvudza/Intwasa scheme, as well as improved input support, extension services, mechanisation, and irrigation development.
“This is coupled with the continuation of input support programmes for farmers, improvement in extension services, mechanisation, and irrigation development. In 2024, agriculture growth is projected at -15 percent on account of El-Nino-induced drought. In the outlook to 2025 growth is projected at 12,8 percent on account of normal to above-normal rainfall,” he said.
Prof Ncube also emphasised the need for deeper investment in irrigation infrastructure to mitigate the effects of future droughts.
He said while the mid-term NDS1 review identified notable achievements in all 14 thematic areas, the 2025 National Budget will give impetus to the implementation of programmes and projects as outlined in the 2025 Budget Strategy.
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