ZIMBABWE’S economic recovery prospects brightened considerably during the first quarter of 2025, driven by a robust performance in agriculture and mining, which saw the Government collect a notable US$1,74 billion in revenue.
This figure comfortably surpassed the target of US$1,54 billion, registering a positive variance of US$207,3 million.
The encouraging start to the year is largely attributed to above-average rainfall, which significantly boosted the agricultural sector, and exceptionally high international commodity prices for gold, underpinning a strong showing in the mining industry.
These favourable conditions were further supported by a stable macroeconomic environment, a direct result of the nation’s stringent fiscal and monetary policies.
Despite the positive domestic outlook, the report from the Ministry of Finance, Economic Development and Investment Promotion (MoFEDIP) highlighted ongoing global economic uncertainties.
Geopolitical tensions, the imposition of tariffs, and the withdrawal of development assistance were cited as external challenges that could potentially impede Zimbabwe’s desired economic growth and fiscal sustainability.
In local currency terms, cumulative revenue collections for the first three months of 2025 reached ZiG46,7 billion, with expenditures standing at ZiG45,2 billion, leading to a budget surplus of ZiG1,6 billion.
Tax revenue constituted the lion’s share of total collections, amounting to ZiG44,8 billion, or 95,9 percent. Value Added Tax (VAT) was the leading contributor at 27,1 percent, followed by Personal Income Tax at 21,4 percent, Excise Duty at 10,7 percent, and Corporate Tax at 8,5 percent.
On the expenditure front, total outlays during the quarter amounted to ZiG45,2 billion. Recurrent expenditures, primarily employment costs (ZiG22 billion) and government operations (ZiG7,1 billion), accounted for ZiG34 billion, while capital expenditures reached ZiG11,2 billion.
Of the capital expenditure, infrastructure development projects absorbed ZiG5,4 billion, approximately 48,7 percent of the total.
The report also noted that ZiG1,5 billion was allocated to social assistance programmes to support vulnerable members of society, with interest payments amounting to a further ZiG1.5 billion, of which 80,1 percent was directed towards servicing domestic debt.
Domestic debt repayments for the first quarter totalled US$201,0 million and ZiG944,7 million. – Herald
Source: Thezimbabwemail
