2025 budget must be pro-poor, pro-productive

Today, all eyes are on Finance Minister Mthuli Ncube as he unveils the 2025 national budget.

Zimbabwe faces economic challenges of alarming proportions, a US$21 billion debt overhang, record unemployment, a deteriorating public health system, and an informal economy that dominates the tax base.

This budget must deliver solutions that are both compassionate and catalytic, addressing the immediate needs of the poor while reigniting productivity.

With swelling poverty levels, ordinary Zimbabweans are demanding more than token gestures. The budget must prioritize essential public services—healthcare, water, and education—over non-core government spending. Constitutionally mandated devolution funds, which require 5% of revenues, must be allocated in full to empower local authorities. Direct investments in housing, sanitation, and public transport can significantly ease the burdens on low-income communities.

Rural farmers, particularly those vulnerable to climate shocks, must also see tangible support. Irrigation infrastructure, affordable access to drought-resistant seeds, and subsidies for conservation farming can boost resilience and reduce reliance on erratic rainfall. Equally, urban families need social safety nets and affordable goods, made possible by addressing inflation and supply chain inefficiencies.

Zimbabwe’s industries are crying out for relief.

The 2% Intermediated Money Transfer Tax (IMTT) has become a lightning rod for criticism, with businesses arguing that it discourages formalization and financial inclusion.

While this tax has bolstered government revenues, its reduction—or strategic restructuring—is crucial to incentivize business growth and promote digital payments.

The mining sector, vital to foreign currency earnings, is similarly overburdened by a maze of taxes, including royalties and beneficiation levies.

A simplified and competitive tax framework can attract investors, even amid fluctuating commodity prices. For small-to-medium enterprises (SMEs), tax holidays and subsidized loans could unlock significant potential, driving both formalization and job creation.

Fiscal discipline is non-negotiable.

The government must eliminate wasteful spending, including excessive travel costs and subsidies for loss-making State-Owned Enterprises (SOEs). These entities, described as fiscal black holes, need immediate restructuring or privatization to reduce their drag on the economy.

Equally critical is greater transparency regarding Zimbabwe’s public debt, a step that could rebuild confidence among international creditors and facilitate debt relief.

Public-private partnerships (PPPs) and Build-Operate-Transfer (BOT) models offer innovative solutions to reduce government spending while advancing infrastructure projects.

If implemented effectively, such initiatives could address power shortages, road infrastructure, and housing deficits without further straining the national purse.

Minister Professor Ncube’s emphasis on resilience is timely.

Climate-smart agriculture and investment in renewable energy are essential to future-proofing Zimbabwe’s economy.

Supporting farmers with insurance products and modern irrigation systems could enhance food security and stabilize rural incomes. Furthermore, a robust energy strategy—focused on solar, hydro, and wind projects—can reduce Zimbabwe’s reliance on expensive imports and erratic grid supplies.

Underpinning these measures must be a commitment to economic transformation through innovation. Targeted investments in research, technology, and education will equip Zimbabwe with the tools needed to compete in the global economy.

For many, skepticism outweighs hope.

Years of unmet promises have left Zimbabweans expecting more taxes without meaningful improvements. From rising toll fees to additional levies, fears of further economic strain dominate public sentiment. Yet, there is a glimmer of optimism that today’s budget could prioritize productivity over politics.

If Minister  Professor Ncube truly wants to transform the economy, he must shift resources from appeasement to empowerment. Traditional leaders and politically connected groups cannot continue to benefit at the expense of public service delivery.

 Real change requires bold decisions—ones that prioritize the collective good over entrenched interests.

The 2025 budget presents a pivotal opportunity to reset Zimbabwe’s economic trajectory.

By balancing pro-poor initiatives with pro-productive reforms, Minister Professor Ncube could restore faith in government and set the stage for sustainable growth.

Failure to act decisively will deepen the nation’s economic quagmire and further alienate a weary citizenry.

It is a moment for leadership—bold, transformative, and inclusive.

Will the government rise to the occasion, or will it deliver more of the same?

Zimbabwe waits.