ZIMBABWE’S inflation rate is projected to fall to its lowest level since 1997 — before the country entered a prolonged period of inflationary volatility — marking a historic turning point in Government efforts to restore macro-economic stability.
In an interview with The Herald, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government expected to achieve single-digit year-on-year inflation in ZiG by the first quarter of this year, a milestone not seen in nearly three decades.
“We should, in the first quarter of this year, be able to reach a single-digit inflation year-on-year in ZiG.
“And that will be the first time we have seen this kind of inflation level since, I don’t know, 1997,” said Prof Ncube.
He said the projected decline in inflation reflected the success of tight fiscal and monetary coordination aimed at stabilising prices, strengthening the local currency and restoring confidence in the economy.
Zimbabwe began experiencing economic challenges from the late 1990s, marked by rising inflation, currency volatility, fiscal deficits and shrinking production.
At the peak of the crisis in the 2000s, after Zimbabwe was placed under illegal sanctions by the United States and much of the West, the country recorded some of the highest inflation levels in the world.
Prof Ncube said achieving single-digit inflation would signal a return to price stability, improved planning certainty for businesses and households, and a stronger foundation for sustainable economic growth.
Growth outlook
The minister said Treasury expects economic growth of 5 percent in 2026, slightly down from the 6.6 percent recorded in 2025, but still strong enough to sustain the momentum.
“For 2026, again we are determined as a Government to make sure that we deliver on the growth that came through last year and we continue. We’re expecting a growth rate of 5 percent,” he said.
He said Government’s top priority for 2026 is maintaining macroeconomic stability through disciplined fiscal and monetary management.
“Our priorities will be stability, maintaining macroeconomic stability. This involves project management in terms of fiscal management, then also project management in terms of monetary policy. The two together, working together to make sure that we’ve got stability,” he said.
On the fiscal side, Treasury will keep the budget deficit within 0.5 percent of Gross Domestic Product, avoid using the Reserve Bank overdraft facility and manage public debt levels.
On the monetary side, the Reserve Bank will ensure there is no excessive growth in money supply, maintain positive real interest rates and carefully manage liquidity.
“All of that put together will support currency stability,” said Prof Ncube.
He said the strategy is already bearing fruit, with exports reaching record levels.
“Our export receipts are at US$16.2 billion,” he said, noting that this is the highest export earnings in the country’s history.
Zimbabwe is also running a current account surplus of just over US$1 billion, meaning the country is earning more from exports and remittances than it is spending on imports.
“All that is very supportive of currency stability and overall stability,” he said.
Prof Ncube said the 2026 Budget will focus on supporting the key pillars of the economy while maintaining stability.
“But look, in budget execution, I also have to make sure that we support those levers, those pillars of the economy that will deliver growth,” he said.
Agriculture remains a top priority, supported through infrastructure development, fertiliser programmes and irrigation investment.
“Supporting agriculture, for example, with our infrastructure programme. Fertiliser programme, investment in irrigation,” he said.
Treasury has set aside the equivalent of US$500 million, or ZiG14 billion, for infrastructure development, including roads, dams and related projects.
“We’ve put aside US$500 million equivalent, ZiG14 billion, supporting infrastructure for roads, dams and so forth,” he said.
Human capital development, housing delivery and social infrastructure will also receive significant funding.
“On human capital development, the same. Housing support, the same,” said Prof Ncube.
He said the 2026 Budget will therefore balance stability with growth-supporting investment.
“So the Budget of 2026 must support the key levers, key pillars of the economy, in addition to maintaining stability,” he said. – Herald
