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 and low coverage of social assistance programs. The country is 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.

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Zimbabwe’s macroeconomic situation has stabilized significantly in 2025, with improved price and exchange rate stability. Gross Domestic Product (GDP) has grown from 1.7% in 2024 to 7.5% in 2025, led by rebounds in agriculture and higher global mining prices. A record year-on-year single-digit local currency inflation rate of 4.1% was achieved in January 2026 and parallel market exchange rate premium, which had been excessively high in recent years, has declined to below 20% in December 2025. Yet the recovery is delicate, and fiscal risks remain elevated. Zimbabwe’s external and overall public debt is unsustainable and in distress, with total public debt of 45.6% of GDP in 2025. Successful implementation of structural reforms will help to anchor long-term growth by unlocking concessional funding lines and external long-term investments.

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The World Bank Group’s engagement in Zimbabwe is limited to technical assistance, knowledge, advisory, and analytical work due to arrears. The ongoing portfolio includes the $1.5 million Energy Sector Management Assistance Program (ESMAP) financed Zimbabwe Renewable Energy Procurement Technical Assistance Project (ZREP) that aims to support competitive procurement of Renewable Energy Independent Power Producers (IPPs). The portfolio also comprises ten ongoing Advisory Services and Analytics (ASA) initiatives addressing critical knowledge gaps, advancing priority reforms, and strengthening the evidence base for policymaking.

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The WBG’s strategy in Zimbabwe is guided by the FY25–26 Country Engagement Note (CEN) which supports short-term macroeconomic reforms while laying the groundwork for fuller re-engagement aligned with Zimbabwe’s National Development Vision 2030. The CEN is organized around four objectives: strengthening macroeconomic stability, promoting private sector-led inclusive growth, boosting pro-poor social services, and advancing energy transition and climate resilience.

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Expanded essential health services. The Zimbabwe COVID-19 Response and Essential Health Services Project reached 278,963 people via community-based outreach services, supported vaccination campaigns for HPV, cholera, tetanus and trained 34,598 health workers in infection prevention. The project also strengthened cold chain infrastructure with 250 solar refrigerators, increased antenatal care attendance to 54%, and upgraded 25 secondary facilities for emergency obstetric and newborn care.

Improved Business Environment. The World Bank provided technical assistance and completed regulatory assessments across the tourism, livestock, dairy, and stockfeed sectors that informed reform packages, streamlined compliance requirements, and reduced costs, fostering a more competitive environment for private sector growth. Technical assistance has also been provided to facilitate cross border tourism and trade between Zimbabwe and Zambia at Victoria Falls.

Strengthened Agrifood Value Chains. IFC's Nespresso supply chain engagement supported over 2,100 farmers, planted more than one million trees, brought approximately 1,650 hectares under cultivation, enabled green coffee exports, and generated around $1 million in farmer revenues—demonstrating the impact of targeted value chain development when policy, institutions, and markets align.

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