Private sector key to unlocking Zimbabwe’s economic growth: WB
Private sector key to unlocking Zimbabwe’s economic growth: WB
ROBIN PHIRI
The World Bank has emphasized that Zimbabwe’s private sector holds the key to unlocking sustained economic growth, calling for greater focus on value addition and industrial expansion.
Victor Steenbergen, an economist with the World Bank in Zimbabwe, underscored this point while speaking at the Confederation of Zimbabwe Industries Symposium in Harare. He stressed that strengthening value chains and enhancing productivity in key sectors are crucial for long-term economic transformation.
“Zimbabwe’s private sector holds immense potential for growth and development but faces significant challenges, including macroeconomic instability and limited access to finance,” Steenbergen said.
The country’s economy is at a pivotal moment of transformation. Agriculture, which provides livelihoods for approximately 70% of the population, presents significant opportunities for value addition. The food and beverage sectors, in particular, offer strong linkages to manufacturing, amplifying economic impact.
“There are considerable linkages here with the manufacturing sector that have an important multiplier effect in terms of both output and jobs,” Steenbergen explained. “Agribusiness contributes about 40% of national export earnings and around 7.2% of value-added GDP.”
Meanwhile, the mining industry is poised for a boom, driven by global demand for energy transition minerals such as lithium, nickel, copper, and platinum. Zimbabwe’s rich resource base presents a significant opportunity for investment in mineral beneficiation and industrialization.
“There are favourable global dynamics that suggest value addition in mining is a critical investment opportunity, especially in energy transition minerals,” Steenbergen said.
Tourism, too, is a thriving sector, with Victoria Falls continuing to attract visitors. However, Steenbergen highlighted the need to develop other untapped tourism destinations to maximize economic gains.
“Victoria Falls is doing very well, but beyond that, there are many areas where development could bring greater benefits to tourism. Leveraging Zimbabwe’s geographic location in network tourism is particularly critical,” he noted.
As the economy gains momentum, entrepreneurs and investors are taking notice. New businesses are emerging, creating jobs and driving growth. With the government implementing policies to support private sector expansion and attract foreign investment, Zimbabwe is on track for an economic transformation.
With strategic investment in agriculture, mining, and tourism—alongside policies that foster private sector growth—Zimbabwe has the potential to position itself as a leading economic powerhouse in Africa.
