The World Bank has warned that Zimbabwe’s recent macroeconomic stabilisation will not deliver broad based prosperity unless accompanied by structural reforms.
In its Zimbabwe Growth and Jobs Report published on Friday, the Bretton Woods institution acknowledged progress in the country’s fiscal and monetary discipline, which brought local currency inflation into single digits in early 2026 for the first time since 1997 and supported average GDP growth of nearly six percent between 2021 and 2025.
However, it warned that 80 percent of Zimbabweans remain in the informal sector, with median earnings of $130 per month, and nearly half the population living below the poverty line.
“The window of opportunity created by recent stabilisation is open but decisive and coordinated execution over multiple years will be essential,” World Bank Senior Economist and report lead author Victor Steenbergen said.
The World Bank recommended a number of reforms, including macroeconomic stability and arrears resolution to restore access to concessional financing, and infrastructure investment in power, transport and irrigation, noting electricity shortages cost 6.1 percent of GDP annually.
It also called for deeper regulatory reforms to simplify permits, reduce fees and ease cross border trade, as well as private sector development through stronger land tenure, financial deepening and legal certainty for investors.
Steenbergen said focusing first on power reliability and trade facilitation would yield rapid dividends, setting the stage for broader reforms to build lasting investor confidence.
“This sets the stage for deeper legal and financial sector reforms that build lasting investor confidence.”
The report comes on the back of the bank’s recent decision to remove Zimbabwe from the list of the world’s fragile economies.
JN/APA