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Nqobile Bhebhe, [email protected]

FINANCE, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, yesterday disclosed to parliamentarians that Zimbabwe had accrued ZWG63,1 billion in revenue during the first nine months of the year while incurring ZWG66,5 billion in cumulative expenses.

This imbalance led to a deficit of ZWG3,4 billion. However, Prof Ncube assured parliamentarians that this deficit would still fall within the SADC macroeconomic convergence target of three percent of the Gross Domestic Product by the end of the year and in 2025.

Speaking during a 2025 pre-budget seminar in Bulawayo themed “Building Resilience for Sustained Economic Transformation”, Prof Ncube revealed that tax revenue made up 92,6 percent of the total revenue, amounting to ZWG58,4 billion, while non-tax revenue accounted for the remaining ZWG4,7 billion, representing 7,4 percent of the total revenue collected from January to September 2024.

“During the period January to September 2024, the main contributors to total revenue collections were as follows: value added tax (26,9 percent), personal income tax (20,5 percent), excise duty (11,7 percent), corporate income tax (8,8 percent), and customs duty (6,8 percent),” he said.

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“Cumulative expenditure from January to September 2024 amounted to ZWG66,5 billion, against a target of ZWG65,6 billion resulting in an expenditure overrun of ZWG0,9 billion.”

Prof Ncube further noted that the resilience is a testament to the successful execution of strategic reforms and policies by the Government.

“The effective implementation of these policies has led to the development of a robust economic environment, characterised by adaptability and the capacity to withstand these external shocks ensuring long-term prosperity for the nation. Going forward into 2025, the economy is expected to recover on account of expected better rainfall season,” he said.

He noted that the tourism sector had recovered post-Covid-19 to US$1,75 million in 2024. Tourism receipts reached US$1,2 billion in 2023 compared to US$0,91 billion recorded in 2022. Prof Ncube said the sector is a key source of foreign currency revenues for the economy.

“Government policies such as suspension of duty on approved tourism equipment for refurbishment and suspension of duty on vehicles for tour and safari operators have aided the industry,” he said.

In the manufacturing sector, Prof Ncube said steady increases in industry capacity utilisation to 52,1 percent correspond with increasing local production.

Industry capacity utilisation has been at 10-year highs in 2021 and 2022 around 56 percent and the sector has witnessed significant investment to modernise and expansion of production capacity.

“The commencement of steel production at Dinson Iron and Steel Company (DISCO) has provided the economy with a huge opportunity to transform several sectors in the iron and steel value chain, thereby promoting linkages with upstream and downstream industries,” said Prof Ncube.

The Government recently launched the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) 2024-2025 which seeks to address some of the challenges facing the sector.

“Growth of the manufacturing sector is projected at 2,5 percent in 2024, reflecting the expected positive impact of the substantial investments underway in both existing and new plant and machinery.

“The projection also takes into account the commencement of steel production at Dinson Iron and Steel Company in Manhize and its effect on downstream and upstream industries,” said Prof Ncube.