Zimbabwe economy on the upswing, rating agency says

ICRA Rating, a UAE-based credit rating agency, has lauded Zimbabwe's economy for demonstrating impressive resilience and growth. The agency attributes this positive outlook to recent government initiatives aimed at stabilizing the economy and attracting foreign investment.

Key measures include the introduction of a new currency, the Zimbabwe Gold, to stabilize the financial system, alongside tight monetary policies and controlled spending to curb inflation.

In a statement, ICRA Rating highlighted that while Zimbabwe faces challenges such as infrastructure deficits, the market continues to offer opportunities for investors and entrepreneurs. The agency emphasized the country's potential amidst ongoing efforts to strengthen economic fundamentals and foster a conducive business environment.

ICRA Rating, known for its international presence including offices in London, Spain, and various African regions, expressed its commitment to collaborating with Zimbabwean institutions like the Zimbabwe National Chamber of Commerce and the Zimbabwe Association of Microfinance Institutions. Additionally, discussions are underway with the Reserve Bank of Zimbabwe to enhance support for the local market.

The agency pointed out the growing bilateral trade between Zimbabwe and the UAE, noting significant trade figures that underscore the importance of developing a robust financial ecosystem. This partnership highlights the UAE's role as Zimbabwe's second-largest export market, with exports to the UAE reaching US$2.3 billion in 2021, indicating strong economic ties and potential for further growth.

Overall, ICRA Rating's assessment underscores the importance of a well-established credit rating framework in boosting investor confidence, lowering borrowing costs, and promoting economic stability in emerging markets like Zimbabwe.