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Zimbabwe among Africa's fastest-growing economies in 2025
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Zimbabwe is expected to be one of Africa's fastest-growing economies this year, with the African Development Bank (AfDB) forecasting a 5.3 percent growth rate.
This strong projection is slightly below the 6 percent estimated by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube but still places Zimbabwe among the continent's top performers.
Niger is projected to lead the growth race in Africa, with an expected 11.1 percent growth due to its burgeoning oil production sector. Other top-performing African economies include Senegal, Rwanda, and Ethiopia.
Agriculture is expected to spearhead Zimbabwe's economic recovery, following a season of good rains. Last year, economic growth was limited to 2 percent due to the El Niño-induced drought, which significantly reduced the maize harvest by about 71 percent, according to the World Bank.
Other key sectors, including mining, tourism, and infrastructure development, are also expected to contribute significantly to economic expansion. The AfDB's African Economic Performance Report paints a highly positive outlook for Zimbabwe's economy.
"In 2025, economic performance in Zimbabwe will benefit from agricultural recovery, greater electricity generation, and expected stability in commodity prices in mining, with growth projected to rise from an estimated 2.0 percent in 2024 to 5.3 percent in 2025," the AfDB stated.
Agriculture has historically been a pillar of Zimbabwe's economy, and Government initiatives such as improved access to financing and input support schemes are expected to boost production.
The mining sector is also set to play a crucial role, benefiting from stabilised global commodity prices and increased investments in exploration and production, particularly in gold, lithium, iron ore, and steel.
The World Bank has forecast growth in transport and distribution, construction, retail, and manufacturing, which will further contribute to Zimbabwe's overall economic expansion.
Economist Gladys Shumbambiri-Mutsopotsi said that while the AfDB's forecast fell short of the Government's 6 percent growth target, the bullish projection still reflected an overall positive outlook.
"The AfDB report shows positive developments in Zimbabwe's macroeconomic growth trajectory, which aligns with the Government's ambitions to scale up economic growth," she said. "While challenges remain, achieving the set targets requires strong commitment and oversight."
Zimbabwe National Chamber of Commerce president Mr Tapiwa Karoro stressed the importance of collaboration between the Government and private sector to consolidate economic gains.
"What is needed is stakeholder commitment, where the Government and the private sector work together to identify priority areas," Karoro said. "While there are positive signs of growth, some areas still need attention to ensure sustained economic progress."
The AfDB's optimistic forecast for Zimbabwe aligns with similar predictions by the International Monetary Fund (IMF) and the World Bank, both of which anticipate strong economic growth for the country this year.
"Zimbabwe's economic outlook is positive, with recovery from the 2019-2020 COVID-19 recession and the 2024 El Niño-related drought," the World Bank said in its recently published Zimbabwe Economic Update report.
The report projects nearly 13 percent growth in the agricultural sector, anchored by a recovery in maize and tobacco production. It also highlights continued expansion in the mining sector, supported by rising gold prices and new investments in lithium, iron ore, and steel production.
"Similarly, the tourism industry is growing rapidly, with increasing numbers of international arrivals and rising hotel bed occupancy," the report noted.
With strong sectoral growth and robust economic policies, Zimbabwe's economy is on track for a significant rebound in 2025, reaffirming its position as one of Africa's top-performing economies.
This strong projection is slightly below the 6 percent estimated by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube but still places Zimbabwe among the continent's top performers.
Niger is projected to lead the growth race in Africa, with an expected 11.1 percent growth due to its burgeoning oil production sector. Other top-performing African economies include Senegal, Rwanda, and Ethiopia.
Agriculture is expected to spearhead Zimbabwe's economic recovery, following a season of good rains. Last year, economic growth was limited to 2 percent due to the El Niño-induced drought, which significantly reduced the maize harvest by about 71 percent, according to the World Bank.
Other key sectors, including mining, tourism, and infrastructure development, are also expected to contribute significantly to economic expansion. The AfDB's African Economic Performance Report paints a highly positive outlook for Zimbabwe's economy.
"In 2025, economic performance in Zimbabwe will benefit from agricultural recovery, greater electricity generation, and expected stability in commodity prices in mining, with growth projected to rise from an estimated 2.0 percent in 2024 to 5.3 percent in 2025," the AfDB stated.
Agriculture has historically been a pillar of Zimbabwe's economy, and Government initiatives such as improved access to financing and input support schemes are expected to boost production.
The mining sector is also set to play a crucial role, benefiting from stabilised global commodity prices and increased investments in exploration and production, particularly in gold, lithium, iron ore, and steel.
The World Bank has forecast growth in transport and distribution, construction, retail, and manufacturing, which will further contribute to Zimbabwe's overall economic expansion.
Economist Gladys Shumbambiri-Mutsopotsi said that while the AfDB's forecast fell short of the Government's 6 percent growth target, the bullish projection still reflected an overall positive outlook.
"The AfDB report shows positive developments in Zimbabwe's macroeconomic growth trajectory, which aligns with the Government's ambitions to scale up economic growth," she said. "While challenges remain, achieving the set targets requires strong commitment and oversight."
Zimbabwe National Chamber of Commerce president Mr Tapiwa Karoro stressed the importance of collaboration between the Government and private sector to consolidate economic gains.
"What is needed is stakeholder commitment, where the Government and the private sector work together to identify priority areas," Karoro said. "While there are positive signs of growth, some areas still need attention to ensure sustained economic progress."
The AfDB's optimistic forecast for Zimbabwe aligns with similar predictions by the International Monetary Fund (IMF) and the World Bank, both of which anticipate strong economic growth for the country this year.
"Zimbabwe's economic outlook is positive, with recovery from the 2019-2020 COVID-19 recession and the 2024 El Niño-related drought," the World Bank said in its recently published Zimbabwe Economic Update report.
The report projects nearly 13 percent growth in the agricultural sector, anchored by a recovery in maize and tobacco production. It also highlights continued expansion in the mining sector, supported by rising gold prices and new investments in lithium, iron ore, and steel production.
"Similarly, the tourism industry is growing rapidly, with increasing numbers of international arrivals and rising hotel bed occupancy," the report noted.
With strong sectoral growth and robust economic policies, Zimbabwe's economy is on track for a significant rebound in 2025, reaffirming its position as one of Africa's top-performing economies.
Source - the herald
