Treasury signals tighter policy stance

LIVINGSTONE MARUFU AND CLOUDINE MATOLA

Finance Minister, Professor Mthuli Ncube, has signalled a tighter fiscal and monetary policy stance as the Government moves to lock in recent macroeconomic stability gains and sustain momentum towards upper-middle-income status by 2030.

The shift follows nearly two years of relative stability, marking a clear departure from the volatility that has defined much of the past decade.

Officials say a disciplined blend of fiscal consolidation, tight liquidity control and exchange rate stabilisation has begun to restore confidence, with the economy projected to grow by around 5% this year.

“Maintaining fiscal discipline, strengthening industrial competitiveness and advancing structural reforms will be essential to consolidate these achievements during the National Development Strategy 2 implementation phase, which marks the final lap towards realisation of Vision 2030.”

The external sector has also remained resilient. Strong foreign currency receipts in the fourth quarter of 2025 contributed to trade and current account surpluses, reinforcing currency and price stability, according to Treasury.

Officials say the priority now is to lock in recent gains. Government models indicate inflation will remain in single digits through 2026, even amid external pressures such as rising global fuel prices and geopolitical uncertainty.

Zimbabwe’s economy has endured repeated bouts of instability over the past decade, including episodes of hyperinflation that eroded savings and undermined business confidence.

The latest policy framework, centred on disciplined spending, constrained money supply growth and tighter exchange rate management, is designed to avoid a return to those conditions.

Alongside macroeconomic tightening, the government is pressing ahead with structural reforms aimed at improving the ease of doing business and supporting private-sector-led growth.

This week, Cabinet approved a sweeping review of mining licences, permits and levies, part of a broader effort to reduce production costs and improve sector competitiveness.

Acting information minister Mangaliso Ndlovu said the reforms would streamline overlapping regulatory requirements, eliminate redundant charges and lower excessive fees across the mining value chain.

“Cabinet approved the streamlining of duplicated regulatory licences, removed unnecessary levies and lowered unjustifiably high fees for the mining sector,” Ndlovu said at a post-Cabinet briefing in Harare.

The review aligns with an earlier Cabinet decision in July 2025 to implement business environment reforms across 12 sectors of the economy. Authorities say the changes are intended to reduce the cost of doing business, enhance enterprise viability and stimulate broader economic growth.

As part of the overhaul, more than 80 per cent of existing mining fees deemed reasonable will be retained, while new pricing structures will introduce differentiated fees based on operators’ capacity to pay. Artisanal and small-scale miners will pay significantly lower licence fees than large-scale operators.

The reforms also introduce new regulatory charges, including permits for gold jewellery production and registration requirements for lithium processing plants, reflecting the government’s push to expand mineral value addition.

In addition, registration fees for dealing in precious stones have been reduced and extended to a five-year payment cycle, easing compliance costs for operators.

Cabinet also reviewed broader policy and legislative issues affecting the sector, including amendments to the Mines and Minerals Act, the development of a Minerals Development Policy and the rollout of a Mining Cadastre System to improve transparency in the allocation and management of mining rights.

Authorities said strengthening regulatory oversight and formalising small-scale mining operations remain key priorities, particularly as Zimbabwe seeks to maximise returns from its mineral resources.