Zimbabwe: Ncube Pledges to Stay Course on Economic Reforms as FDI Surges
Zimbabwe’s finance minister has pledged that the government will stay the course on its current macroeconomic stabilisation programme, as foreign direct investment (FDI) into the country rose to US$965 million during the first half of the year, according to AllAfrica.
Presenting the Mid-Term Budget Review, Professor Mthuli Ncube said the focus for the remainder of 2026 would be on sustaining growth, attracting further investment and strengthening social protection programmes for vulnerable households. He argued that the policy mix introduced in recent years — including the launch of the structured currency known as the Zimbabwe Gold (ZiG) in 2024 — had laid the groundwork for stability after years of hyperinflation and currency volatility.
The FDI figure marks a notable upswing from the depressed levels recorded during much of the last decade, when prolonged economic turbulence, foreign-currency shortages and concerns over property rights deterred international capital. Officials have previously linked the turnaround to improved fiscal discipline, a tighter monetary policy stance and renewed engagement with international financial institutions, though Zimbabwe continues to grapple with external debt arrears that have limited access to multilateral financing.
Ncube also pointed to social protection as a priority, saying cushioning programmes targeting the elderly, children and people with disabilities would need to be widened as the cost of living continues to weigh on low-income families. The Treasury is expected to outline updated revenue and expenditure projections in the coming weeks as part of the mid-term fiscal framework.
Analysts caution that the challenge for the government will be to maintain investor confidence while addressing structural weaknesses, including power shortages, an underdeveloped manufacturing base and the lingering impact of Western sanctions. The success of the reforms, observers say, will depend in part on whether the upward trend in FDI can be translated into jobs and export earnings rather than concentrated in the extractive sector.
Sources
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