‘NDS2 blueprint to propel Zimbabwe from stabilisation to industrialisation’

STAFF WRITER

Zimbabwe’s next economic blueprint, the National Development Strategy 2 (NDS2), will shift the country’s focus from economic stabilisation to industrialisation, value addition and inclusive growth, a decisive phase aimed at transforming the economy into an upper-middle-income society by 2030, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.

Professor Ncube highlighted that NDS2 (2026–2030) will consolidate the gains of NDS1 and deepen structural reforms to build a resilient, productive and competitive economy anchored on innovation, stability, and good governance.

Speaking during his ministry’s 2026–2030 strategic planning workshop in Mutare last Thursday, Prof Ncube said the first phase of the national plan — NDS1 (2021–2025) — had achieved “tangible progress across most sectors”, laying the groundwork for a more robust transformation agenda.

“As we prepare for NDS2 (2026–2030), our focus must shift from stabilisation to structural transformation,” Prof Ncube said.
“NDS2 must deepen the reform agenda and drive inclusive growth under the following strategic imperatives: strengthen domestic resource mobilisation, enhance expenditure efficiency and broaden the tax base to support inclusive development; promote innovation, technology adoption and local value chains to enhance productivity and exports. Modernise public enterprises, digitalise public finance management and entrench accountability.”

Under NDS2, Government will intensify economic reforms around five key priorities, namely fiscal consolidation and stability, industrialisation and value addition, domestic resource mobilisation, innovation and digitalisation and institutional effectiveness and good governance

Prof Ncube emphasised that sustaining macroeconomic stability will remain at the core of the new plan. Fiscal discipline, exchange rate stability and a credible monetary framework will underpin investor confidence and ensure a predictable business environment.

“We must focus on 10 national priorities that deliver food security, infrastructure, industrialisation, human capital development and investment facilitation as central pillars,” he added.
“Ensure the 2026 Budget amplifies public investments that catalyse private sector activity and crowd-in finance for infrastructure and value chains; rebalance budgets towards catalytic capital expenditure with clear value-for-money frameworks and strengthen procurement oversight. These priorities align with Vision 2030 and the African Union’s Agenda 2063 framework, emphasising transformation through innovation, integration and sustainable governance.”

Industrialisation, value addition and local value chain development will form the backbone of NDS2. Prof Ncube said Zimbabwe must break from its traditional dependence on exporting raw materials and instead focus on producing finished goods to create jobs, boost exports, and strengthen the manufacturing, agro-processing, and mining beneficiation sectors.

This shift, he said, will position Zimbabwe as a regional hub for value-added exports and industrial products.

The Government will expand its domestic resource base through improved tax administration, the formalisation of the informal sector, and prudent management of natural resources. The objective is to reduce reliance on external borrowing and ensure that national budgets are primarily financed from internal resources.

Prof Ncube described NDS1 as a “resounding success”, citing major progress in infrastructure, agriculture, mining, and fiscal reforms.

“Our macro-economic fundamentals have shown resilience, with GDP growth averaging above five percent between 2021 and 2024, amid moderate inflationary pressures and fiscal consolidation efforts that yielded improved expenditure discipline,” he said.
“Infrastructure development accelerated, the agricultural sector recorded bumper harvests and mining investment reached record levels. Policy coherence in fiscal planning and alignment with Vision 2030 created measurable improvements in macro-framework stability and planning discipline.”

He also credited the structured monitoring and evaluation system — along with the Mid-Term Review of NDS1 — for enabling Government to identify policy gaps and make real-time adjustments.

“A structured monitoring and evaluation system, and comprehensive Mid-Term Review provided critical course-corrections and evidence to guide policy decisions,” Prof Ncube explained.
“Progress under NDS1 across 14 thematic areas delivered improvements in public investment planning, priority infrastructure projects and a stronger policy consensus around investment promotion and export growth. However, we are diligently working to ensure exchange rate stability and manage climate shocks, address limited industrial competitiveness and governance inefficiencies in some public enterprises.”