Source: Industry earnings rise 9pc – herald
Oliver Kazunga-Senior Reporter
ZIMBABWE’S economic engine is gaining momentum, with industry earnings rising 8,8 percent in the fourth quarter of 2025 as key sectors increased wages amid stronger business activity.
Latest labour market statistics released this week by the Zimbabwe National Statistics Agency (ZimStat) show that the Industry Earnings Index climbed to 130,4 during the fourth quarter of 2025 from 119,9 recorded during the corresponding period in 2024.
On a quarter-on-quarter basis, the index increased by 3,8 percent from 125,6 recorded in the third quarter of 2025, reflecting continued momentum in earnings growth across key sectors of the economy.
The increase was driven by strong performances in financial and insurance activities, which recorded the highest Industry Earnings Index of 660,74, followed by water supply, sewerage, waste management and remediation activities (267,72), education (248,25), real estate activities (216,40) — and human health and social work activities (213,68).
“The Industry Earnings Index for the 4th quarter of 2025 stood at 130,4, reflecting a year-on-year increase of 8,8 per cent compared to the index of 119,9 recorded in the 4th quarter of 2024,” said the agency.
In separate interviews, economic commentators said the figures reflected improving confidence among businesses, particularly in sectors benefiting from increased investment, infrastructure development and stronger economic activity.
Economic commentator Ms Wendy Mpofu said the rise in earnings demonstrated that productive sectors were strengthening and companies were improving their ability to reward workers.
“The sustained growth in earnings is consistent with expanding economic activity across several productive sectors.
“The next objective is to ensure productivity gains continue to support improvements in workers’ real incomes,” she said.
Another economic commentator, Mr Peter Mhaka, said the sectoral performance showed that industries attracting investment were also recording stronger earnings growth.
“The sectoral performance is encouraging because it shows that areas attracting investment and undergoing expansion are also recording stronger earnings growth.
“The utilities sector, for example, reflects the importance of infrastructure investment in supporting economic activity and job opportunities,” he said.
Mr Mhaka said continued investment in infrastructure would be critical in sustaining sectors that are driving economic activity.
In the 2026 Mid-Term Budget Review Statement presented in Parliament last week, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said Government was establishing an Infrastructure Development Fund expected to unlock US$400 million for critical road projects.
The financing initiative is expected to accelerate completion of major highways, improve regional trade corridors and support economic activity while reducing pressure on Treasury resources.
In the latest report, ZimStat, however, noted that while nominal earnings increased, workers’ purchasing power remained affected by price movements.
“Overall, the real earnings index fluctuated during the review period, indicating that increases in nominal earnings were offset by inflation as measured by the Consumer Price Index (CPI),” said the agency.
The Industry Real Earnings Index stood at 71,5, compared to 80,0 during the same period in 2024.
However, the index improved by four percent from 69 recorded during the third quarter of 2025, pointing to a quarterly improvement.
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