Maladministration, corruption and poor planning continue to stymie economic development in Zimbabwe, which should be a regional economic powerhouse.“Zimbabwe has significant growth potential, with its well-educated workforce, abundant natural resources and strategic location,” said Nathan Belete, World Bank country director for Zimbabwe in a country engagement note. “Sustained, inclusive and resilient growth will require building on recent reforms and advances in economic policy,” he stated. “Zimbabwe presents a challenging, and yet potentially rewarding, investment climate,” is the view of the US Department of State.In its country review, it states that Zimbabwe’s “skilled labour, high literacy rate, mineral wealth, agricultural potential, bountiful wildlife and natural landscapes present commercial opportunities for US firms. “Sectors that currently attract the most investor interest include agriculture (tobacco in particular), mining, energy and tourism”.The World Bank agrees, describing Zimbabwe as being “highly competitive in several value chains in agriculture and agribusiness industries, including sugar, cotton, horticulture, meat a nd da ir y. “Furthermore, tourism and mining of energy transition minerals – including ample lithium reserves – hold significant potential in the short term”.There is, however, a "but".“To realise this potential fully, Zimbabwe needs to find new ways to capitalise on existing and emerging opportunities for the private sector to drive economic growth and harness the country’s comparative advantages.”There is little confidence that the present government has the capacity or will to make the necessary changes.“The economic and political dysfunction that has plagued Zimbabwe for years is unlikely to lift anytime soon, leading to increased emigration and a drift toward Russia and China,” writes Tereas Pinto, a GIS African affairs specialist.“Without incentives to change, those in power – including the most powerful wing of the military – will not implement political or democratic reforms.“Zimbabweans will continue to emigrate, delivering significant regional implications.”Zimbabwean expats are keeping the economy going. Delivering his 2025 budget speech in November 2024, finance, economic development and investment promotion minister, Mthuli Ncube, told parliament that Zimbabwe was expected to record a current account surplus of $150.5m in 2024, and $277.4m in 2025. “This is driven mainly by the resilient diaspora remittances inf lows and a projected narrower trade deficit,” he said.The finance ministry is predicting 6% growth in the gross domestic product (GDP) in 2025, up from 2% in 2024.In September 2024 the Zimbabwean public debt stood at $21 billion, made up of $12bn external debt and $9bn internal. ER
