Harare, (New Ziana) – Zimbabwe’s economy is projected to grow by six percent in 2025 from a sluggish two percent this year, supported by improved agricultural output and power generation as the country recovers from a severe drought, Finance, Economic Development and Investment Promotion Minister, Prof Mthuli Ncube said on Thursday.
Presenting the 2025 national budget in Parliament, Prof Ncube said the budget deficit was projected at 0.4 percent of gross domestic product next year, versus 1.4 percent this year. Prof Ncube said revenue next year is expected to top US$7.5 billion against expenditures of
US$7.7 billion. He said the agriculture sector is projected to grow by 12.8 percent in 2025 following a 15 percent contraction this year, while mining growth is seen accelerating to 5.6 percent next year from 2.3 percent in 2024.
Prof Ncube said in 2025, the government would seek to encourage greater acceptance of the local currency, the ZiG, by the public. The Finance Minister proposed new tax measures – including on betting winnings of 10 percent withholding tax on gross winnings by sports betting punters.
He also proposed to review downwards the special surtax on beverages’ sugar content on cordials from US$0.001/g to 0.0005/g. Prof Ncube also slapped a 0.5 percent tax on sales of fast foods such as burgers, chicken, chips, pizza and doughnuts and blamed them for “obesity and associated non-communicable diseases”.
In order to support the local assembly of motor vehicles, Prof Nube proposed a wholly suspended customs duty on semi knocked down kits for a period of two years beginning January 1, 2025.
He also proposed a government freeze on the recruitment of new staff, while withdrawing tax incentives that have previously been used to attract investors. “To address this unsustainable position, revenue enhancement measures will be implemented, whilst also limiting the recruitment of additional personnel only to critical sectors such as health and education,” he said.
New Ziana
