The World Bank in Zimbabwe

The Republic of Zimbabwe is a lower-middle-income country with strong human and natural capital and considerable growth potential.

Over the past two decades Zimbabwe has experienced significant economic volatility, low growth and high informality, as well as increasing poverty. Poverty reduction has been constrained by structural factors including macroeconomic volatility, dependence on low-productivity agriculture combined with exposure to weather shocks, low coverage of social assistance programs, and high inequality in income and human capital development. The country is also highly exposed to climate change, facing increasingly frequent climate-related shocks that exacerbate vulnerability and food insecurity.

Even so—Zimbabwe can build on its highly educated workforce, abundant natural resources, and recent advances in economic policy, together with key structural and institutional reforms—to achieve steady and rapid growth and move towards upper-middle-income country status, which the Government of Zimbabwe has targeted for 2030.

Economy

Zimbabwe’s Gross Domestic Product (GDP) growth slowed to 1.7% in 2024, primarily due to a severe drought that affected agricultural and hydro-power output. Macroeconomic stability has improved throughout 2025, with significant reductions in inflation and notable exchange rate stability. Growth is projected to rebound to 6% in 2025, supported by a good agricultural season, record-high gold prices, and strong remittance inflows. Yet the recovery is delicate, and fiscal risks remain elevated.

Zimbabwe continues to be in debt distress, with high and unsustainable public debt that limits its access to international financing. Due to accumulation of external arrears and legacy debts, total public debt reached $23.2 billion in 2024 (72.9% of GDP).  Zimbabwe has been in non-accrual status to the World Bank since 2000 and is also in arrears to the African Development Bank (AfDB) and the European Investment Bank (EIB).

Last Updated: Oct 02, 2025

Zimbabwe remains in International Development Association (IDA) nonaccrual and thus, WBG engagement is limited to technical assistance, knowledge, advisory, and analytical work. The ongoing portfolio includes the $21.57 million Global Financing Facility for Women, Children and Adolescents (GFF)–financed Zimbabwe COVID-19 Response and Essential Health Services Project. GFF supported the Government of Zimbabwe in deploying and managing COVID-19 vaccines, strengthening health system capacity for pandemic preparedness, and delivering essential health services, particularly Reproductive, Maternal, Newborn, Child, and Adolescent Health (RMNCAH).

The portfolio also comprises i) 10 ongoing Advisory Services and Analytics (ASA) initiatives that provide the evidence base for reform and policy dialogue; and ii) one multi-donor trust fund–the Zimbabwe Socio-Economic Transformation Fund (ZISET), supported by the United Kingdom, Sweden, Switzerland, and the State and Peacebuilding Fund (SPF). ZISET aims to promote inclusive growth and socio-economic resilience, focusing on supporting inclusive, private sector-led growth and building household resilience and women’s inclusion.

IFC engagement is similarly limited to advisory and analytical services. This includes the ongoing Nespresso Coffee Development Program, Environmental and Social (E&S) and climate advisory services to Commercial Bank of Zimbabwe (CBZ), and Environmental, Social, and Governance (ESG) & Climate Finance Training for the financial sector in collaboration with the Institute of Bankers of Zimbabwe.

Last Updated: Oct 02, 2025

The WBG strategy in Zimbabwe, guided by the FY25–26 Country Engagement Note (CEN), supports short-term reforms and sets the stage for future engagement aligned with Zimbabwe’s National Development Vision 2030 and the Structured Dialogue Platform. Structured around two pillars—macroeconomic stability and inclusive growth, and building resilience—the CEN emphasizes technical assistance, capacity building, regional collaboration, and arrears clearance. It focuses on reducing macroeconomic distortions, strengthening fiscal policies, and improving economic governance to promote private sector-led growth. The CEN is primarily financed through ZISET, in partnership with Sweden, Switzerland, and the United Kingdom. The CEN calls for continued coordination with partners, the private sector and encourages scaling up IFC and Multilateral Investment Guarantee Agency (MIGA) engagement.

Last Updated: Oct 02, 2025

Expanded essential health services. The Zimbabwe COVID-19 Response and Essential Health Services Project expanded essential health services to over 234,000 people via community outreach, supported vaccination campaigns for HPV, cholera, tetanus, and trained nearly 37,000 health workers in infection prevention. The project also improved cold chain infrastructure with 250 solar refrigerators, increased antenatal care attendance to 51% and upgraded 25 secondary facilities for emergency obstetric and newborn care.

Support to Zimbabwe’s ease of doing business reform agenda. Technical assistance was provided and regulatory assessments completed that informed the recently approved reform packages for livestock, dairy, and stockfeed sectors, reducing regulatory requirements and costs to foster private sector growth. Capacity building for regulatory authorities was also provided to support implementation.

Last Updated: Oct 02, 2025