Economists attending the 2026 Pre-Budget Seminar in Bulawayo have commended the Government’s fiscal and monetary policy stance for maintaining economic stability over an extended period.
The consensus emerging from the seminar suggests the upcoming National Budget must now prioritise measures to enhance public confidence in the local currency.
In his presentation, Dr Cornelius Dube, chief economist for the Confederation of Zimbabwe Industries (CZI), highlighted that the country is experiencing economic growth which is being effectively matched by Treasury’s ability to collect taxes.
Dr Dube pointed out that the statistic used to measure if GDP growth translates into revenue collection—known as ‘tax points’—has consistently remained around the recommended level for developing countries.
“The recommended practice generally is that for developing countries such as Zimbabwe, it should be between 1.1 and 1.3,” Dr Dube stated.
“For us as Zimbabwe, tax points has been consistently around 1.1 . . . you also see the ability of Treasury to collect, commensurate with the growth in the GDP.”
The Reserve Bank of Zimbabwe (RBZ), whose presentation was detailed during the seminar, has anchored macroeconomic stability through various policy levers, including increasing the bank policy rate from 20 percent to 35 percent, and raising statutory reserve requirements for demanded call deposits to 30 percent.
The central bank also detailed prudent money supply management and the refinement of open market operations.
Despite these successes, Dr Dube cautioned that one key revenue stream — presumptive tax — was not growing at a level commensurate with GDP in 2024. He suggested that the 2026 National Budget must make a concerted effort to “harness” this revenue stream.
Crucially, to maintain stability, there is a need to enhance public confidence and use of the local currency, which Dr Dube observed still suffers from a confidence gap. He argued that this lack of trust often stems from the public’s perception of fiscal authorities.
“We still have a confidence gap, but this confidence gap is coming from our inability to make sure that we pay our contractors,” Dr Dube asserted, urging a deepening of monetary and fiscal policy coordination. In response, Ministry of Finance Permanent Secretary Mr George Guvamatanga briefly confirmed that Treasury has arrangements in place with contractors.
Supporting the stability claims, Dr Carren Pindiriri from the University of Zimbabwe applauded the central bank and the Minister of Finance, observing that the tightening of monetary policy had led to visible stabilisation in prices and inflation.
“It’s the first time over a long period of time where people can keep their local currency in the bank for two weeks, and come back next week, to find the same value,” Dr Pindiriri stated, based on statistics indicating economic improvement.
Finance Minister Professor Mthuli Ncube presented data showing how annual inflation has moderated significantly under the ZiG. He cited ZIMSTAT figures indicating that annual inflation, which peaked at 271,7 percent in 2023, now stands at 32,7 percent in October 2025.
The Minister projected that inflation would average 61,3 percent in 2025, end the year at 22,8 percent, and decline to single-digit levels by 2027.
This stability, Minister Ncube concluded, is underpinned by the broad acceptance of the ZiG and the continued implementation of prudent fiscal and monetary policies by the Government.
