Business ReporterSTOCKBROKING firm IH Securities has issued a broadly positive assessment of the 2026 National Budget, noting the Government’s continued commitment to fiscal discipline, formalisation and stability to strengthen economic fundamentals among key highlights.IH hailed most of the fiscal policy proposals despite some tax measures that may tighten business margins in certain sectors of the economy.In its Macro-economic update Zimbabwe 2026 National Budget Review, the equities research firm noted that the Treasury had remained consistent in its reform agenda.“The Government continues to prioritise pivoting to fiscal discipline and measures that close leakages while leveraging high commodity prices,” IH Securities said.The stockbroking firm added that these measures are laying a stronger foundation for growth while improving transparency across key sectors.The advisory firm also highlighted the ongoing modernisation of systems and business reforms as a net positive for the investment climate.“Business reforms are broadly positive,” IH Securities noted, pointing to improved market confidence and sustained export performance, particularly in mining.A key highlight of the budget, according to the firm, is the liberalisation of gold trading, which is expected to boost formal deliveries and enhance efficiency in the value chain.“Liberalisation of gold trading should enhance formalisation in the gold value chain,” IH said, emphasising that the move could unlock more value for both producers and the fiscus.IH further commended the projected stabilisation in prices, pointing out that inflation is expected to slow down significantly next year. “Inflation is projected to decline to single digits in 2026, reinforcing currency stability and supporting asset valuations,” the report said.The firm believes this outlook will improve business planning and investor sentiment.On the public debt front, IH Securities underlined the importance of the arrears clearance plan, noting that progress in this area will be central to achieving the capital-intensive goals of NDS2.“The success of the Arrears Clearance and Debt Restructuring Process remains pivotal to restoring external creditworthiness, reducing debt servicing costs and unlocking concessional financing that is critical for NDS2’s capital projects,” the firm stated.While acknowledging concerns around royalties in the gold sector, IH Securities stressed that the policy shift aims to create long-term sustainability. It noted, “The change in the royalty structure could largely impact returns and investment flows for large-scale miners.”However, the firm added that broader formalisation will support the sector’s prospects.On the VAT increase, the firm said consumer-facing companies will need to balance pricing and volumes, but insisted that market leaders retain strong resilience.“We are in favour of agile companies with monopolistic traits, deep control of their value chains and high defensible margins that can navigate the current environment, such as Econet, Delta and Axia, which are in BUY territory at current levels,” IH Securities said.Despite external risks such as global demand softness and reliance on short-term borrowing, IH Securities concluded that Zimbabwe’s strong mining exports, stable remittances and improving reforms provide a solid base for continued macroeconomic stability.The firm’s review suggests that the 2026 budget represents continued progress toward fiscal consolidation, formalisation and sustained stability under NDS2.
STOCKBROKING firm IH Securities has issued a broadly positive assessment of the 2026 National Budget, noting the Government’s continued commitment to fiscal discipline, formalisation and stability to strengthen economic fundamentals among key highlights. IH hailed most of the fiscal policy proposals despite some tax measures that may tighten business margins in certain sectors of the economy. In its Macro-economic update Zimbabwe 2026 National Budget Review, the equities research firm noted that the Treasury had remained consistent in its reform agenda.
“The Government continues to prioritise pivoting to fiscal discipline and measures that close leakages while leveraging high commodity prices,” IH Securities said. The stockbroking firm added that these measures are laying a stronger foundation for growth while improving transparency across key sectors. The advisory firm also highlighted the ongoing modernisation of systems and business reforms as a net positive for the investment climate.
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“Business reforms are broadly positive,” IH Securities noted, pointing to improved market confidence and sustained export performance, particularly in mining. A key highlight of the budget, according to the firm, is the liberalisation of gold trading, which is expected to boost formal deliveries and enhance efficiency in the value chain. “Liberalisation of gold trading should enhance formalisation in the gold value chain,” IH said, emphasising that the move could unlock more value for both producers and the fiscus.
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