Zim on course for strongest growth in Southern Africa, says AfDB

THE African Development Bank (AfDB) has projected that Zimbabwe is on course to achieve a six percent economic growth rate this year, buoyed by stability and recovery in key productive sectors.

 

According to the multilateral financier, growth is being underpinned by strong performance in agriculture, new mining projects, a rebound in manufacturing, and ongoing construction activities.

 

Speaking to ZBC News in Harare on Tuesday, AfDB Principal Country Economist, Kelvin Banda, said sound fiscal and monetary policies will anchor the growth momentum.

 

“This year, we are forecasting a six percent growth from two percent, driven by the recovery in the agriculture, mining, and manufacturing sectors.

 

“We are also appreciating the efforts by the Central Bank to stay the course of a tight monetary policy and sustain the current gains, so there is a need to further focus on stability.”

 

In its initial forecast for Sub-Saharan economies, the AfDB noted Zimbabwe’s economy is tipped to outpace regional peers, riding on overall macro-economic stability.

 

“The government is already implementing measures to sustain the economy.

 

“Zimbabwe is one of the fastest-growing countries in the Southern African region.

 

“Despite the headwinds of last year, the macro-economic stability measures will be key in terms of sustaining growth prospects of the country,” Banda stated.

 

The multilateral financier noted that despite inflationary pressures and local and global headwinds, a tight monetary policy system, including prudent fiscal discipline, has left Zimbabwe on course to overcome challenges.

 

The recently released 2025 Mid-Term Fiscal and Monetary Policy Statements are all pointing to a six percent growth rate, with policy consistency emerging as the top focus by the Treasury and the central bank.

ZBC