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Zimbabwe Finance Minister Mthuli Ncube Budget 2022 Highlights

Major takeaways from Finance Minister Mthuli's 2022 Budget
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Finance Minister Mthuli Ncube today presented his budget for 2022.

• ZWL$927.3 billion budget was proposed. Revenue of Z$850.8bn is expected. The deficit will be funded mostly from domestic borrowings

• Health, agriculture and infrastructure are getting the bulk of IMF funds

• Top three votes go to Agriculture (ZW$124bn), Primary and Secondary Education (ZW$124bn), Health (ZW$118bn)

• Minister Mthuli Ncube still expects economic growth of 7.8%, but admits that “renewed pressures on inflation and a misaligned official exchange rate and rising international oil prices” may derail projections.

• There will be a capital budget of ZWL$334.2 billion. Out of this, ZWL$156.4 billion is for infrastructure

• Annual inflation is projected to end the year between 52% and 58%, up from the revised target of between 25% and 35%.

• Tax-free thresholds are up from ZWL$10 000 to ZWL$25 000. Tax bands will end at Z$500 000, above which a tax rate of 40% will apply, starting 1 January 2022. The tax-free bonus threshold is up from Z$25 000 to Z$100 000.

• For USD salaries, the tax-free threshold is up from US$70 to US$100. The tax-free bonus has been increased from US$320 to US$700, with effect from November.

• Excise duty on cigarettes is up from 20% and US$5.00/1000 cigarettes to 25% plus US$5.00/1000
Withholding tax is up from 10% to 30% from January

• Capital equipment worth at least US$10,000 can be imported duty-free

• Fuel imports (Jan-Sept) stood at US$285.1m, down from US$488.6m over the same period in 2020

• Raw material and machinery imports rose 94% and 50% in 2021, respectively, at US$2.4bn and US$1.3bn

• Exports were up 19% at US$4.053bn versus US$3.4bn in the months up to September 2021

•Government will issue USD-denominated Government Bonds of up to US$100 million on the Vic Falls Stock Exchange. The money will be used for infrastructure. The Infrastructure Development Bank of Zimbabwe (IDBZ) and Afreximbank are the Joint Lead Arrangers/Financial Advisors.

editor
Abel Mavura is a journalist, editor, and writer whose work explores the intersections of cities, migration, and social justice. He tells stories about how people move, survive, and remake urban life under conditions of precarity, drawing on close field engagement and lived experience. Trained as a journalist at the Christian College of Southern Africa, Abel’s early work was rooted in media practice and community storytelling. Over time, his focus expanded into research and critical inquiry, allowing his writing to move fluidly between reportage, analysis, and long-form reflection. He is a graduate of Sciences Po Paris and is currently pursuing research at the University of Cambridge, where his work builds on earlier research into migration and informal housing. Abel is the author of three books, and his writing has appeared across platforms ranging from grassroots and community radio to international and policy-facing spaces. His work is grounded in clarity, ethical storytelling, and a commitment to centring voices often left out of mainstream narratives.

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