Mthuli Ncube Projects Single-Digit Inflation and Near-Balanced 2026 Budget

Itai Mazire 

Finance and Economic Development Minister Professor Mthuli Ncube says Government will continue pushing ease-of-doing-business reforms to strengthen the country’s economic environment and support investment growth.

Presenting the latest fiscal and economic projections, Prof Ncube said inflation is expected to fall to single-digit levels by the first quarter of next year, signalling improved currency stability.

“The country’s current account balance is projected to rise to US$1.4 billion in 2026, up from the US$1.3 billion estimated for 2025. The improvement is expected to be driven by stronger export performance and increased diaspora remittances.

Cumulative revenue collections for 2025 are expected to reach ZiG215.7 billion (US$7.96 billion), against expenditures of ZiG219.46 billion (US$8.10 billion). This will result in a budget deficit of ZiG3.8 billion (US$140.1 million), equivalent to -0.3 percent of GDP,” said Minister Ncube.

On public debt, he reported that Zimbabwe’s Public and Publicly Guaranteed (PPG) debt stood at ZiG622.3 billion, or 44.7 percent of GDP, as of September 2025.

“Looking ahead to 2026, Government is projecting revenue collections of ZiG288 billion. Together with borrowing capacity, this will support an overall expenditure envelope of ZiG290 billion, amounting to 17 percent of GDP,” the Minister stated.

The projections point to a near-balanced budget with a small deficit of ZiG3.2 billion.

Prof Ncube also revealed that Zimbabwe received US$386.1 million in development assistance between January and September 2025, against a full-year target of US$500 million.

“For 2026, development support is expected to decline to US$350 million, representing a 30 percent drop from the 2025 projection,” he added.