HARARE – The World Bank’s latest Zimbabwe Economic Update (ZEU) has applauded the country’s strong economic rebound while simultaneously warning that persistent regulatory bottlenecks, particularly inadequate transparency, risk undermining the gains. The report, released on Tuesday, projects Zimbabwe’s economy to grow by 6.6% in 2025, driven by robust performance in agriculture, services, and continued investment in mining and steel. Growth is expected to remain solid at 5% in 2026, positioning Zimbabwe ahead of many Sub-Saharan African peers.
The World Bank noted that tight monetary policy since late 2024 has helped stabilise the Zimbabwe Gold (ZiG) currency and improve inflation dynamics. Inflation is forecast to fall into single digits in 2026 and toward 5% over the medium term, supporting gradual poverty reduction, although the report stresses that rural households remain vulnerable to droughts, inflation, and limited social protection. World Bank Senior Country Economist Victor Steenbergen said the improving macroeconomic conditions create an opportunity for the government to intensify efforts to strengthen the ease of doing business, which he described as essential for translating headline growth into “lasting economic benefits.” “Now that the macroeconomy is improving, the Government’s position in re-prioritizing efforts to improve the ease of doing business to improve Zimbabwe’s private sector growth and competitiveness are more than necessary to enhance the overall growth and eventually translate economic growth into lasting economic benefits,” Steenbergen noted.
A special section of the ZEU analysing regulatory burdens reveals that some subsectors, including agriculture, agro-processing and tourism, face up to 28 different legal and compliance requirements from multiple Ministries, Departments and Agencies (MDAs). The World Bank has identified major challenges including the inadequacy of transparency and use of manual processes. Many regulatory requirements remain paper-based, with limited online information, forcing businesses to make physical visits to multiple offices. World Bank warns business as usual not an option for…Mar 4, 202519,513World Bank says Zimbabwe’s US$12.5 billion…Feb 4, 202524,841Reimagine or remain stagnant: World Bank says Zimbabwe needs…Mar 1, 202429,895World Bank responds to Patson Dzamara’s petitionSep 29, 2016349 World Bank warns business as usual not an option for…Mar 4, 202519,513 World Bank warns business as usual not an option for…
Read Full Article on Nehanda Radio
