Zimbabwe's 2027 Budget to Prioritize Infrastructure & Drought Preparedness: Finance Minister
Zimbabwe's 2027 Budget to Prioritize Infrastructure & Drought Preparedness: Finance Minister
Mthuli Ncube is set to unveil the fiscal plan this Thursday, outlining a strategic shift from consumption to capital creation while addressing the looming threat of an El Niño-induced drought.
Key details:
Infrastructure Drive: Capital expenditure is projected to rise from 2.3% of GDP this year to 3.8% in 2027, with a long-term target of 8.8% by 2030. Funds will target roads, dams, and irrigation to lower business costs and improve connectivity. To support this, the government aims to cut the wage bill from 52.3% to 38.1% by 2030.
Drought Mitigation: With growth expected to slow to 3.5% and a potential cereal deficit of up to 541,881 tonnes, the government is rolling out a six-pillar readiness strategy. This includes boosting the Strategic Grain Reserve to 600,000 tonnes, expanding climate-smart agriculture to 1 million hectares, and securing grain imports.
Fiscal Outlook: Revenue is projected at $12.8 billion against $13.3 billion in planned spending, leaving a modest $500 million deficit to be financed within sustainable targets.
Economic Stability: Treasury aims to maintain recent currency stability, with gold and foreign currency reserves projected to increase to $2.9 billion. Annual ZiG inflation has significantly dropped from 95.8% in July 2025 to 4.3% in October.
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