Zimbabwe Budget 2027 to prioritize infrastructure and drought preparedness: Minister of Finance.
Metuli Nakov is set to unveil the fiscal plan this Thursday, outlining a strategic shift from consumption to capital creation while addressing the looming threat of El Nino-induced drought. Main details: Infrastructure push: Capital spending is expected to rise from 2.3% of GDP this year to 3.8% in 2027, with a long-term target of 8.8% by 2030. The funds will focus on roads, dams and irrigation to lower business costs and improve connectivity. To support this, the government aims to cut wages from 52.3% to 38.1% by 2030. Drought mitigation: With growth expected to slow to 3.5% and a potential grain deficit of up to 541,881 tonnes, the government is releasing a six-page preparedness strategy. This includes increasing the strategic grain reserve to 600,000 tons, expanding climate-smart agriculture to one million dunams, and ensuring grain imports. Fiscal forecast: Revenues are expected to be $12.8 billion compared to $13.3 billion in planned expenditures, leaving a modest $500 million deficit to finance within sustainable goals. Economic stability: The Ministry of Finance aims to maintain currency stability recently, with gold and foreign currency reserves expected to increase to $2.9 billion. Annual Zig inflation dropped significantly from 95.8% in July 2025 to 4.3% in October.