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You are here: Home / cat / Zimbabwe on the Rise: Economic Rebound Sparks Optimism for Investment and Jobs

Zimbabwe on the Rise: Economic Rebound Sparks Optimism for Investment and Jobs

Dated: December 5, 2025

Zimbabwe’s economy is poised for a strong rebound, with GDP expected to grow by 6.6 percent, driven by a recovery in agriculture, iron and steel production, and services—outpacing many countries in Sub-Saharan Africa, according to the newly released sixth Zimbabwe Economic Update (ZEU). The report highlights easing inflation and sustained growth momentum while urging continued reforms to reinforce macroeconomic stability and create an environment that attracts private investment and generates employment.

The update notes that Zimbabwe’s external sector remains resilient, supported by mineral exports and remittances that continue to sustain a modest current-account surplus. Although the fiscal deficit has narrowed, public debt and debt-service pressures remain significant due to high external arrears, limiting access to affordable financing and squeezing resources needed for critical investments and social programs. While poverty levels are projected to decline as growth strengthens, progress is vulnerable to inflation and climatic shocks, especially for rural households dependent on rain-fed agriculture and limited off-farm income opportunities.

“Zimbabwe has made encouraging progress toward macroeconomic stabilization,” said Eneida Fernandes, World Bank Group Country Manager for Zimbabwe. She emphasized that consistent policy actions focused on inflation control, fiscal discipline, and resolving arrears will be essential to attract investment, generate employment, and protect the nation’s most vulnerable populations.

To sustain progress, the report recommends maintaining a coordinated tight monetary policy to curb inflation and support exchange-rate stability. It also calls for transparent budgeting practices that eliminate quasi-fiscal operations and strengthen public financial management. Further priorities include enhancing fiscal consolidation without compromising key investments and social protection, improving domestic revenue mobilization by rationalizing tax incentives, enhancing mining and property taxation, and pursuing a clear arrears resolution strategy with improved debt transparency.

A special chapter addresses regulatory reforms critical to private-sector expansion, noting that complex regulations, fragmented service delivery, and excessive fees raise business compliance costs—especially for small firms—thereby discouraging formalization and investment. The ZEU proposes a reform agenda centered on transparency through a public registry of licenses and fees, simplification and digitalization of processes, and stronger institutional accountability.

“Zimbabwe’s economic reform agenda is now bearing fruit, and I believe that the Ease of Doing Business reforms will make a significant contribution to sustainable growth going forward,” said Hon. Mthuli Ncube, Minister of Finance, Economic Development, and Investment Promotion.

The report acknowledges progress under the Presidential Ease of Doing Business Initiative and stresses the need to further promote transparency, simplify and digitize regulatory systems, reduce inspection overlaps, and enhance central oversight to ensure regulatory frameworks serve public interests rather than institutional revenue goals.

Zimbabwe’s current trajectory suggests that with sustained reforms, the country can unlock stronger private-sector growth, deepen investor confidence, and create more jobs for its population.

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