mbulelo smpofu
Nqobile Bhebhe, [email protected]
FINANCE, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, is optimistic about the country’s economic prospects, predicting a six percent growth rate this year.
Despite delayed rains, Prof Ncube believes the country can capitalise on emerging energy minerals to sustain economic momentum.
Speaking on the X platform, Prof Ncube highlighted the economy’s positive trajectory, citing the local currency, Zimbabwe Gold (ZWG), as a key stabilising factor.
He emphasised the importance of maintaining a tight monetary stance, which has yielded positive results in supporting the value of ZWG and ensuring fiscal discipline with controlled budget deficits.
Prof Ncube expressed confidence in a broad-based recovery across all sectors, particularly agriculture, which is expected to grow by over 10 percent.
Improved rainfall patterns are anticipated to boost water levels at Kariba Dam, enhancing electricity generation and contributing to economic stability.
“Despite the delayed rains, we still expect a six percent GDP growth rate. The recent rains have renewed optimism for a better harvest, following last year’s severe drought caused by El Nino,” he said.
The country experienced its worst drought in 43 years in 2023, which resulted in just two percent economic growth. Agriculture, a cornerstone of Zimbabwe’s economy and a major employer, was heavily impacted.
Prof Ncube noted that agriculture’s significance extends beyond its GDP contribution, as it underpins key sectors such as manufacturing through its role in the value chain.
He reaffirmed the Government’s commitment to mineral beneficiation, particularly for platinum group metals (PGMs) and lithium. He noted that laws have been introduced to mandate lithium processing to at least lithium sulphate level before export, with a five percent beneficiation tax imposed on raw lithium exports.
“Companies must submit detailed beneficiation plans to secure mining licences. Several firms are already investing in beneficiation facilities to comply with these requirements,” said Prof Ncube.
“For the first time, we have put a law that says lithium should not be exported raw but should be beneficiated to the level of lithium sulphate. Various companies are already investing in these facilities to ensure that they do beneficiation; if not a beneficiation tax is charged.”
In the fuel sector, Prof Ncube said there is significant progress in ensuring stability.
“We have maintained a multi-currency regime, allowing the use of both domestic and foreign currencies. This has worked well, eliminating long fuel queues and ensuring steady supply,” he said.
Meanwhile, Prof Ncube will lead a Zimbabwe delegation to the World Economic Forum (WEF) Annual Meeting in Davos-Klosters, Switzerland, from January 20-24.
This year’s theme, “Collaboration for the Intelligent Age,” will focus on addressing global and regional challenges, including geopolitical shocks, sustainable growth, and a just energy transition.
In addition to representing the country, Prof Ncube will participate as chairperson of the Committee of African Finance Ministers and as the chair of SADC.
Prof Ncube said he will also preside over a session on investment into three start-ups, as the national venture fund is now fully operational.
“Being Minister of Finance, this year I am also the chairman of the committee of Finance Ministers for the whole of Africa, so I also carry that continental mandate. We are also the chair of SADC, we are also the voice of SADC, and we carry the burden of the whole continent,” he said.
The WEF Annual Meeting 2025 aims to foster collaboration among global leaders to address critical issues and stimulate inclusive economic growth.
