FBC Securities lauds mid-term budget as blueprint for national resilience

Business ReporterFBC Securities has applauded the mid–year fiscal achievements, lauding the 2025 Mid-Term Budget and Economic Review as a blueprint for sustained national resilience.In a commentary released alongside the official review, the firm held that, “The report underlines the transformational potential of ongoing reforms and the decisive role of public policy in steering Zimbabwe toward robust growth.”Highlighting the recalibration of national output, FBC Securities pointed to the rebasing exercise as a landmark achievement.“Based on the census, ZIMSTAT revised the 2023 GDP upwards from ZiG 133,7 trillion to ZiG 168,8 trillion, reflecting a broader and more inclusive estimate of national economic activity,” the research firm said.The firm argued this adjustment not only strengthens the statistical underpinnings of future fiscal planning but also demonstrates the Government’s commitment to transparency and modern data practices.On the critical issue of informality, FBC Securities was unambiguous, “The informal sector is playing a significant role in the economy, acting as both a cushion against formal sector weaknesses and a challenge to effective economic management.”However, in a tone that blends caution with optimism, the analysts noted that while the informal sector is a vital shock absorber in the current environment of tight liquidity and contractionary policies, it poses structural challenges to sustainable economic growth, formalisation of revenue and long-term industrialisation.According to FBC Securities, this dual character underscores the need for carefully calibrated support measures that bring micro-enterprises into the formal tax net without stifling their entrepreneurial spirit.Turning to revenue mobilisation, FBC Securities applauded the Government’s forward-looking stance. “Government’s 2026 revenue outlook targets enhanced domestic mobilisation through tax base expansion, SME formalisation and digital tax reforms,” the report read.In its view, the emphasis on lowering compliance costs and tightening loopholes will not only shore up fiscal buffers but also reinforce confidence among both local and international investors.FBC Securities reserves its highest praise for the growth projections, which it describes as ambitious yet achievable.“The Government projects real GDP growth of 6.0 percent in 2025, largely driven by a strong rebound in agriculture (+21,5 percent), continued expansion in mining (+5,3 percent) and a modest growth in manufacturing and services,” the firm quotes from the review.The analysts argued that this growth trajectory vindicates recent policy shifts, particularly monetary tightening and targeted infrastructure spending, that have laid the groundwork for a self-reinforcing cycle of investment and productivity gains.In upbeat but measured language, FBC Securities endorsed the mid-year surplus as evidence of prudent stewardship.“A mid-year surplus of ZiG 3.3 billion underscores disciplined public spending and a stabilising fiscal environment,” the commentary stated. It further credits the Government’s focus on key infrastructure projects, transport, water and sanitation and agriculture, for bolstering long-term growth prospects.While the note acknowledges lingering risks, such as tight liquidity conditions that may constrain private sector activity, particularly in trade, construction and small enterprises, it insists that the authorities have the policy tools and political will to manage these headwinds.In FBC Securities’ view, the convergence of strong export receipts, remittance inflows and a narrowing parallel market premium forms a solid external cushion against potential shocks.Ultimately, FBC Securities concluded, “This mid-year review sends a powerful message, Zimbabwe is on a path to resilient, export-led growth, underpinned by data-driven policy, strategic reforms and a clear vision for fiscal sustainability.”In its assessment, the Government’s blend of caution and ambition offers a template for other emerging markets grappling with similar macroeconomic challenges.Share on FacebookPost on XFollow usSave

Originally published on Zimbabwe Herald

Source: Zimbabwe Herald

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