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Key takeaways from Mthuli Ncube’s play-it-safe budget review

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Finance minister Mthuli Ncube played it safe in his mid-term budget review statement on Thursday, making no major policy decisions and saying he may not need additional funding for his 2021 budget.

After many previous policy shocks, the best part about a largely uneventful budget statement was exactly that; it was uneventful. There were no major announcements on taxation, the currency, or any measures likely to shake tables immediately.

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“There is need to stay the course. There are no policy changes; I believe the existing policies are achieving the desired results are still adequate,” Ncube said. If any big budget changes are to made, those would come in the 2022 budget, he said.

Here is a summary of some of the main takeaways from Ncube’s statement:

Economic Growth: More ambitious target set

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Ncube’s prediction of 7.4% growth for 2021 was already ambitious, so much that even President Emmerson Mnangagwa thought it must be revised downwards. But Ncube is even more confident. He now sees the economy growing by 7.8%, higher than his initial expectation of 7.4%.

His predictions are far higher than the IMF’s projection of 6% and the World Bank’s 3.9% forecast. They also contrast sentiment from major local companies, many of which are tempering their confidence of a rebound with caution over the likely impact of COVID-19.

Why is Ncube so confident? He cites “rainfall season, higher international commodity prices, stable macroeconomic environment and a managed COVID-19 pandemic.”

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Ncube says agriculture will this year grow faster than expected. It will grow by 34%, higher than the initially predicted 11%. He bases this on output from key farm segments, such as maize production.

The finance minister is also counting on the base effect of GDP contraction in 2020, when the economy shrank by 4%. For 2022, Ncube expects the economy to expand by 5.4%

He sees year-on-year inflation slowing down to between 22% and 35% by December 2021.

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Vaccine procurement: More spending needed

Ncube said COVID-19 vaccines that have been bought so far have been purchased “utilising the savings from last year, in the main.”

But, to achieve Zimbabwe’s target of 60% of the population, the vaccination campaign will require “mobilisation of additional resources for the procurement of more vaccines, over and above the US$100m resource envelope.”

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Ncube laid out what he has spent so far on the programme. To date, 11.8m doses and 7.2m syringes have been purchased using US$93.2 million.

No extra budget needed, for now

Ncube has stayed away from asking for more money from Parliament. Unless there is a major shock, he says, there will be no need for a supplementary budget this year.

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He said: “In the outlook to December 2021, expenditure target of ZWL$421.6 billion will be maintained assuming continued containment of expenditures, save for exigencies managed through reallocations, where necessary.”

So far this year, the Government has managed to live within its means. The government raised an estimated Z$198.2 billion in revenues between January and June and spent Z$197.6 billion.

Diaspora’s support for economy keeps growing

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During the first six months of the year, Zimbabweans living abroad sent home a total of US$746.9 million. Over the same time last year, they sent US$288.7 million. Remittances are projected to reach US$1.3 billion by year end, Ncube said.

The contribution of Diaspora remittances to the economy is growing.

“Diaspora remittances and other transfers, which constitute the secondary income account, are projected to continue driving the current account balance as was the case in 2020. Personal transfers from Zimbabweans in the Diaspora are expected to remain steady and resilient as the economies in key source markets recover from the Covid-19 induced slow-down, allowing them invest in assets back home.”

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Sold: Gold refinery

In December, Ncube announced that the government was privatising Fidelity Printers and Refineries. This is the company that refines and exports gold. Gold producers would control 60% of Fidelity, with central bank keeping 40%.

Ncube has now announced that this deal is now done. Ten miners have agreed to buy the 60% for US$49 million. This will be the first time that the refinery will be in private hands since it was established in 1988.

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While Ncube did not name the ten miners, a structure announced last year said participation would be based on average gold sales over the previous three years. This means among the potential will be the biggest gold producers, such as Kuvimba’s Freda Rebecca, which is now the number one producer, as well as Caledonia Mining, which runs Blanket, and RioZim. – newZwire

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National

Unregulated mining pushes Zimbabwe toward environmental and public health crisis

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BY STAFF REPORTER

Zimbabwe is facing a deepening environmental and public health emergency driven by unchecked mining activities, with environmental experts warning that the situation has escalated into a national security concern.

The alarm was raised during discussions aired on recently at CITE, where environmental leaders unpacked the scale of ecological damage unfolding across the country.

Centre for Natural Resource Governance (CNRG) Executive Director Farai Maguwu said Zimbabwe’s mining boom has reached crisis levels, fuelled largely by economic decline and the collapse of formal employment.

“Mining has become the default survival strategy for many Zimbabweans,” Maguwu said, noting that widespread job losses and industrial shutdowns have pushed communities toward extractive activities as a quick source of income.

He warned that weak governance has allowed mining to spread into protected and ecologically sensitive areas, despite existing policies that prohibit such activities.

“We are seeing mountains disappearing and rivers being destroyed. Even with a ban on riverbed mining, enforcement has collapsed,” Maguwu said.

According to Maguwu, mining has encroached into UNESCO heritage sites and protected zones such as Mavuradona Wilderness, while areas like Shurugwi and Poterekwa Mountain have suffered extensive damage.

More concerning, he alleged that some law enforcement agents and senior officials are complicit in environmental destruction.

“In places like Penhalonga, elements within the police, military, senior government structures and intelligence services are allegedly part of mining syndicates,” he said, warning that the crisis now threatens national stability.

Maguwu also highlighted the dangers of mining beneath roads and residential areas, which he said could result in catastrophic collapses and flash floods.

“They are creating underground dams in mountains. When these give way, people will be swept away,” he said.

He criticised what he described as a lack of urgency from authorities in responding to the scale of destruction.

“If government is concerned about the future of this country, the current level of environmental damage should be setting off alarm bells,” Maguwu said.

He further explained that the shift from underground mining to open-cast methods has accelerated deforestation, land degradation and loss of agricultural land, undermining food security.

The uncontrolled use of toxic substances such as mercury and cyanide, particularly during the rainy season, has also heightened contamination risks.

“These chemicals are being dumped indiscriminately, with no punitive measures in place,” he said, warning that rainfall washes toxins into rivers, dams and streams.

Maguwu expressed particular concern for rural communities dependent on untreated water from shallow wells, especially in Marange and Matabeleland North.

“People are drinking contaminated water. The long-term health consequences are devastating and still unfolding,” he said, describing the crisis as an “environmental Armageddon.”

Similar concerns were echoed by Nkosikhona Sibanda, Executive Director of the Centre for Environmental and Corporate Accountability Research (CECAR), who said the crisis is nationwide.

In Matabeleland North, Sibanda said mining activity—particularly by Chinese-owned companies—has intensified in areas such as Hwange, Kamativi in Binga, and surrounding districts.

“When communities hear about foreign investment, they expect development. Instead, they are experiencing severe environmental degradation,” Sibanda said.

Studies conducted between 2024 and 2025, he added, revealed dangerous levels of air pollution in Hwange.

“The results were shocking. Air quality is far beyond safe limits, and people are breathing toxic substances daily,” Sibanda said.

Health facilities in affected areas have reportedly recorded a rise in respiratory illnesses and chronic diseases, underscoring the growing human cost of environmental neglect.

“This is no longer just an environmental issue—it is a public health emergency,” Sibanda said.

This report is based on information originally published by the Centre for Innovation and Technology (CITE).

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World AIDS Day: UN Chief says ending AIDS by 2030 “is within grasp”

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BY SONIA HLOPHE

United Nations Secretary-General António Guterres has marked World AIDS Day with a message urging world leaders to scale up investment, confront stigma and ensure that lifesaving HIV services reach everyone who needs them.

In his statement, Guterres said this year’s commemoration serves as a reminder that the world “has the power to transform lives and futures, and end the AIDS epidemic once and for all.”

He highlighted the major gains achieved over the past decade.

“The progress we have made is undeniable,” he said, noting that “since 2010, new infections have fallen by 40 per cent” while “AIDS-related deaths have declined by more than half.” Access to treatment, he added, “is better than ever before.”

But despite this global progress, the Secretary-General warned that the crisis is far from over.

“For many people around the world, the crisis continues,” he said. “Millions still lack access to HIV prevention and treatment services because of who they are, where they live or the stigma they endure.”

Guterres also raised concern over shrinking resources:

“Reduced resources and services are putting lives at risk and threatening hard-won gains.”

He said ending AIDS requires fully supporting communities, scaling up prevention and ensuring treatment for everyone.

“Ending AIDS means empowering communities, investing in prevention and expanding access to treatment for all people.”

He also called for innovation to be matched by real-world delivery:

“It means uniting innovation with action, and ensuring new tools like injectables reach more people in need.”

Above all, he stressed the need for a human-rights centred response so no one is excluded.

“At every step, it means grounding our work in human rights to ensure no one is left behind.”

With the 2030 global deadline approaching, the UN chief said success is still possible if momentum is sustained.

“Ending AIDS as a public health threat by 2030 is within grasp. Let’s get the job done.”

 

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Zimbabwe fast-tracks approval of long-acting HIV prevention drug Lenacapavir

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BY WANDILE TSHUMA

Zimbabwe has taken a major step in the fight against HIV following the rapid approval of Lenacapavir, a groundbreaking long-acting injectable for HIV pre-exposure prophylaxis (PrEP). The Medicines Control Authority of Zimbabwe (MCAZ) authorised the drug in just 23 days, marking one of the fastest regulatory approvals in the country’s history.

The application, submitted by pharmaceutical company Gilead Sciences in October, underwent an expedited review because of its public health importance. MCAZ says the fast-tracked process did not compromise scientific scrutiny, with the product subjected to a rigorous assessment of its safety, efficacy and quality.

Lenacapavir is designed for adults and adolescents weighing at least 35kg who are HIV-negative but at substantial risk of infection. Unlike traditional daily oral PrEP, the medicine is administered as a six-monthly injection, following an initiation phase that includes one injection and oral tablets on Days 1 and 2. Health authorities say this long-acting formulation could dramatically improve adherence and expand prevention options, particularly for communities where daily pill-taking is difficult.

MCAZ Director-General  Richard T. Rukwata described the approval as a landmark moment in Zimbabwe’s HIV response.

“The rapid approval of Lenacapavir reflects MCAZ’s dedication to accelerating access to trusted, high-quality health products. This milestone brings new hope for HIV prevention and reinforces our commitment to safeguarding public health,” he said.

To fast-track the process, the Authority applied a regulatory reliance approach, drawing on scientific assessments from the World Health Organization’s Prequalification Programme (WHO PQ). This allowed evaluators to build on internationally recognised review processes while ensuring Zimbabwe’s own standards were met.

The introduction of Lenacapavir comes as Zimbabwe continues efforts to reduce new HIV infections, particularly among young people and key populations who face barriers to consistent PrEP use. Public health experts say the drug’s twice-yearly dosing could be a game changer in improving uptake and protection.

MCAZ says it remains committed to ensuring Zimbabweans have access to safe, effective and good-quality medical products, in line with its mandate under the Medicines and Allied Substances Control Act.

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