Treasury says sustained economic growth across key sectors continues to position Zimbabwe firmly on course to attain an upper middle income society by 2030, in line with the Second Republic’s inclusive development agenda that prioritises stability, productivity and broad based national transformation.
The country’s transition from recovery to sustainable growth has been driven by improvements in macroeconomic stability, price moderation, the successful introduction of the local currency in 2024 and significant retooling within the industrial sector. These dynamics have strengthened the productive base and enhanced national competitiveness.
Permanent Secretary in the Ministry of Finance, Economic Development and Investment Promotion, Mr George Guvamatanga, said Government is targeting single digit inflation by 2026 and economic growth of around 6.6 percent, noting that the current trajectory indicates a shift towards sustained expansion rather than temporary recovery.
“Macroeconomic stability has always been the basis for economic growth, not just stability, but sustainable stability. Through the fiscal measures we have implemented, together with the monetary measures put in place with the central bank, that foundation is now firmly established for industry and the wider economy to grow,” he said.
“That is why we are now talking about single digit inflation in the first quarter of 2026, already within SADC benchmarks. This anchors the growth we expect to see. The Minister is confident that we will become a middle income economy by 2030. Our first and second quarter growth averaged 8.4 percent. So while we project 6.6 percent for the year, both the Minister and I strongly believe growth will exceed 7 percent,” he added.
Value addition and beneficiation remain central pillars under the National Development Strategy Two, with Treasury highlighting the rapid transformation taking place in local manufacturing. The shift from raw commodity exports to processed goods has become more visible in supermarkets, where locally produced foods and beverages now dominate. Companies such as National Foods, Champion Foods, Varun Beverages and CFI Holdings are among the players driving this industrial resurgence.
“Three or four years ago, the ratio of locally manufactured goods to imported goods stood at around 80 to 20 or 70 to 30. We have seen a rapid turnaround. This is reflected in manufacturing now being the biggest sector in our economy. It shows the ability of the economy to convert primary agricultural outputs into consumer goods,” Mr Guvamatanga explained. He added that new production lines, including pasta and biscuit-making plants, underscore the emerging depth of Zimbabwe’s value addition capacity.
Looking ahead, Government aims to establish a strong, modern and resilient infrastructure network that will support productivity and sustainable socio economic development over the next five years. This will be complemented by programmes to boost agricultural output, shore up food and nutritional security and expand agro processing value chains as the country strengthens its path toward long term economic stability and global competitiveness
