Zimbabwe`s economy on a rebound

Staff Reporter

The Zimbabwean economy is on a rebound with the International Monetary Fund (IMF) projecting a growth rate of 6.3 percent despite the COVID-19 pandemic and climate changes which has affected the country’s 2021-2022 farming season.

Speaking during a virtual meeting yesterday in Dubai, Minister of Finance and Economic Development Professor Mthuli Ncube said, “The economy is experiencing a strong rebound, with the IMF estimating growth at 6.3 percent during 2021 underpinned by growth in agriculture, mining, construction and manufacturing sectors.

“However, the IMF estimates growth were moderated to 3 percent during 2022, on account of risks from the pandemic and vulnerability to climate and other exogenous shocks.”

Minister Ncube said that a strong expansion in economic activity, estimated at 7.8 percent during 2021 was mainly due to increased agricultural output driven by a bumper harvest, as well as energy production, manufacturing and construction.

The Minister highlighted that Zimbabwe was ranked number 140 among 190 economies in the ease of doing business according to the 2020 World Bank annual ratings.  He further said that this ranking had improved from 155 in 2019 and from 159 in 2017.

Minister Ncube said that the ease of doing business reforms were part of broad measures on enhancing the country`s investment environment and external competitiveness.

He mentioned that the 2019 World Bank Doing Business Report identified Zimbabwe as one of the top 20 in the world and top five in Africa in terms of Doing Business reformers.

Minister Ncube said that progress had been made in developing an Arrears Clearance Strategy with support from the IMF and World Bank. He added that the Government was engaging various sponsors for Arrears Clearance.

“Engagement is ongoing with various potential sponsors, which is necessary before arrears with selected multilateral creditors can be addressed. Government intends to share Arrears Clearance Strategy publicly soon.”