Download logoFollowing recent progress on macroeconomic stabilization, Zimbabwe has a timely opportunity to build long-term economic momentum and expand formal job opportunities, according to a new World Bank Group report launched today.
The Zimbabwe Growth and Jobs Report notes that fiscal and monetary discipline brought local currency inflation into single digits in early 2026, for the first time since 1997, and supported real GDP growth averaging nearly 6% between 2021 and 2025. At the same time, economic growth has not yet generated widespread improvements in productive employment or household incomes.
Currently, 80% of Zimbabweans work in the informal sector with median earnings of $130 per month, and nearly half the population lives below the international poverty line. The analysis shows that labor has largely shifted from agriculture into low-productivity retail and informal services rather than formal manufacturing or high-value service sectors.
According to the report, continuing on the current course would yield an average growth rate of 4% through 2030, delaying Zimbabwe's goal of attaining upper-middle-income country status until 2036. On the other hand, accelerating key structural reforms could raise real GDP by an additional 10.7% by 2030 and 26.9% by 2040 above the baseline, supporting the creation of up to 230,000 new jobs and raising real worker earnings by more than 30% over the same period.
The report highlights four priority areas for policy attention:
- Macroeconomic Stability and Arrears Resolution: Sustaining low inflation and fiscal discipline while making progress on debt resolution to restore access to concessional external financing.
- Foundational Infrastructure: Addressing power generation and grid reliability—where electricity shortages cost an estimated 6.1% of GDP annually—alongside targeted investments in transport corridors and agricultural irrigation.
- Regulatory Environment: Simplifying business permits, reducing administrative fees, easing cross-border trade procedures, and streamlining tax policy will help encourage small enterprises to invest, expand and formalize.
- Private Sector Investment: Stronger land tenure and commercial justice, financial sector deepening, expanded credit access and improved regulatory certainty for foreign investors are vital to accelerate private investment growth.
"The window of opportunity created by recent stabilization is open, but decisive and coordinated execution over multiple years will be essential," said Victor Steenbergen, World Bank Senior Economist and lead author of the report. "Focusing initially on power sector reliability and trade facilitation will yield rapid dividends. This sets the stage for deeper legal and financial sector reforms that build lasting investor confidence."
Distributed by APO Group on behalf of The World Bank Group.
