Latest news with #MthuliNcube
Bloomberg
31-07-2025
- Business
- Bloomberg
Zimbabwe's Treasury Chief Sees Lower Economic Growth from Next Year
Zimbabwe's economy is expected to expand an average of about 5% a year between 2026 and 2029, with risks to output from the agriculture, mining and electricity sectors, according to Finance Minister Mthuli Ncube. A growth rate of 6% is anticipated this year, unchanged from a December projection, Ncube said in his mid-term budget speech to lawmakers in Mount Hampden, north of the capital, Harare, on Thursday.
Reuters
31-07-2025
- Business
- Reuters
Zimbabwe on track for 6% growth as economy recovers from drought
By Chris Takudzwa Muronzi HARARE, July 31 (Reuters) - Zimbabwe is on track to achieve a forecasted 6% economic growth in 2025 helped by good agricultural output and strong commodity prices, Finance Minister Mthuli Ncube said on Thursday. The Southern African country's economy has shown signs of recovery in the first half of the year following a severe drought and currency turbulence in 2024 that pushed GDP growth down to 2%. "Given the positive economic developments during the period January to June, we are confident that the projected economic growth of 6% alluded to in the 2025 National Budget is achievable," Ncube told parliament in a mid-year budget review. "All sectors of the economy are expected to record positive growth in 2025, mainly on account of a favourable agriculture season, improved electricity generation, stable exchange rate and inflation rate," he said. He did not give an update on the budget deficit, which was seen at 0.4% of gross domestic product in 2025 during the budget forecast last November. Zimbabwe's fiscal position remains under strain from grain imports, drought relief spending and the public sector wage bill. While the government has collected more revenue than in the same period last year, analysts say containing the deficit may prove difficult without new fiscal measures. The local currency, the ZiG, launched in April 2024 to replace the Zimbabwe dollar, has largely remained stable against the U.S. dollar but is still overshadowed by widespread use of the dollar in everyday transactions. Ncube reiterated the government's commitment to the gold-backed unit and said the currency had benefited from tight monetary and fiscal policies.
Bloomberg
08-07-2025
- Business
- Bloomberg
Zimbabwe Hopes to Service External Debt, Doesn't Say When
Zimbabwe, locked out of international capital markets since defaulting in 1999, expects its stronger economy to help it pay back external creditors, without saying when this would begin. Finance Minister Mthuli Ncube told reporters in the capital, Harare, on Tuesday that the country's debt as a percentage of gross domestic product has declined to 46% from around 60% thanks to better growth.
Zawya
07-07-2025
- Business
- Zawya
Zimbabwe abolishes decades-old dual exchange rate controls
The Reserve Bank of Zimbabwe announced the decision through a statutory instrument, marking the end of controls imposed over the past two decades to force the use of local currency. RBZ Deputy Governor Innocent Matshe said: 'We want the market players to drive activity, not the central bank or its agents. The heavy-handedness is gone. You will never see it again.' The central bank previously arrested traders through its financial intelligence unit and police for pricing goods and services more than 10% above official exchange rates. Whilst the measures aimed to stabilise the economy, they suppressed market forces and created an unpredictable and often hostile operating environment. The International Monetary Fund (IMF) has repeatedly urged authorities to fully liberalise the currency market. In a June 18 release, the lender reiterated calls for 'elimination of undesirable exchange restrictions'. The liberalisation aims to reduce pricing distortions, increase competitiveness, and harmonise the formal and informal sectors, which had previously operated under a dual exchange rate system. While the RBZ maintains that the ZiG remains gold-backed and stable, some analysts note that the shift to a floating exchange rate raises questions about the currency's continued asset backing and exposes it to market volatility. The move comes as Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube officially repealed a regulation introduced in May 2024 to settle the exchange rates, seen as part of a move towards more normal economic conditions. © Copyright The Zimbabwean. All rights reserved. Provided by SyndiGate Media Inc. (
Zawya
26-06-2025
- Business
- Zawya
Zimbabwe: African Banker's world news
Zimbabwe starts compensation payments to displaced White farmers The government of Zimbabwe has started disbursing funds to fully compensate former white commercial farmers whose land was compulsorily acquired during the land reform programme that started in the early 2000s. According to, Zimbabwe's Minister of Finance, Mthuli Ncube (below), 94 farms, covering 56 farmers, have been approved for compensation for both the land and improvements made on the farms, with a total value of $145.9m. He said only farms protected under the Bilateral Investment Protection and Promotion Agreements (BIPPAs), signed and ratified before the 2000 land reform programme, are eligible for compensation. The claimants are from Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia. 'The payments to farm owners under BIPPA protection mark a historic milestone and a critical step in Zimbabwe's arrears clearance and debt resolution process,' he said. As Zimbabwe engages with its external creditors for debt relief and restructuring Ncube said the successful implementation of these reforms is a key component of the country's efforts to clear arrears and achieve debt sustainability, which is essential for unlocking new concessional external financing. 'This is critical for the country to achieve its economic development aspirations,' he added. Akinwumi Adesina, President of the African Development Bank Group and the Champion of the Zimbabwe arrears clearance and debt resolution said: 'The compensation demonstrates the government's goodwill and commitment to building trust in the process and improving investor confidence in the country. 'The progress Zimbabwe has made, the commitment and resilience it is showing, calls for support from development partners to facilitate the country's effort in implementing ongoing reforms and to provide the much-needed cushion to the vulnerable members of the population in particular.' 94 farms, covering 56 farmers, have been approved for compensation for both the land and improvements made on it, with a total value of $145.9m.. AFC raises $400m shariah-compliant Murabaha The Africa Finance Corpor- ation (AFC) has successfully closed a $400m shariah- compliant Commodity Murabaha facility, marking its strategic return to the Islamic finance market for the first time in eight years. Initially launched at $300m, the facility was upsized to $400m as strong investor demand resulted in a 47% oversubscription. The transaction attracted participation from 11 leading Islamic financial institu- tions, including new AFC partnerships with Abu Dhabi Islamic Bank PJSC, Al Rajhi Bank, and Emirates Islamic Bank. 'This transaction reaf- firms AFC's role as a bridge between global capital and Africa's most urgent in- frastructure needs,' said Samaila Zubairu (below right), President and CEO of AFC. 'The overwhelming de- mand demonstrates strong confidence in our invest- ment strategy and Africa's increasing importance in the Islamic finance landscape. By expanding our interna- tional funding sources, we continue to create innova- tive fifinancial solutions to drive impactful and sustain- able development across the continent.' Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, and SMBC Bank International Plc acted as Joint Lead Arrangers and Bookrunners for the trans- action. The transaction builds on AFC's proven track record in Islamic fifinance, including its groundbreaking $230m sukuk – the first-ever by an African supranational entity – issued in 2017. AFC has consistently broadened its funding port- folio with innovative trans- actions. In January, AFC raised $500m from its first perpetual hybrid bond. In the same month, it received the highest possible credit ratings from S&P Global (China) Ratings and China Chengxin International Credit Rating Co. Ltd (CCXI) ahead of a potential panda bond issue. Islamic finance, includ- ing Murabaha structures, is widely regarded as ethical and sustainable due to its emphasis on asset-backed financing, risk-sharing, and the prohibition of specula- tive practices. 'Islamic finance plays a growing role in our funding strategy, helping us tap into a diverse pool of investors who share AFC's commit- ment to sustainable and responsible investing,' said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
