Online Reporter
Michael Tome
Business Reporter
The World Bank has proposed reforms to unlock Zimbabwe’s growth potential, urging the Government to ramp up investment in critical infrastructure and improve the business regulatory environment as the country races to achieve upper-middle-income status by 2030.
Presenting the Zimbabwe Country Growth and Jobs Report, World Bank senior country economist Mr Victor Steenbergen said the reforms were critical if Zimbabwe was to translate recent macroeconomic stabilisation into sustained and inclusive economic growth.
The World Bank warned that without structural change, Zimbabwe’s economic growth would average only 4 percent through 2030, below the National Development Strategy 2 (NDS2) target.
At that pace, the country would only attain upper-middle-income status in 2036, six years behind the Government’s Vision 2030 target.
However, the Bank said implementation of its proposed reforms could significantly improve the growth trajectory.
According to the World Bank’s Macro-Fiscal Model, full implementation of the three-pillar reform agenda could increase real GDP by 10,7 percent above the business-as-usual baseline by 2030 and by 26,9 percent by 2040.
The proposals come against a backdrop of improved macroeconomic conditions, with the World Bank noting that growth averaged almost 6 percent between 2021 and 2025, while local currency inflation fell into single digits in early 2026 for the first time since 1997.
Mr Steenbergen said anchoring macroeconomic stability remains essential but not enough, stressing that stability must now be converted into investment, productivity and productive employment.
He said the first requirement identified by the Bank was macroeconomic stability and debt sustainability.
“To accelerate growth, job creation, and structural transformation, Zimbabwe should durably anchor macroeconomic stability and achieve debt sustainability, and prioritise reforms across three mutually reinforcing pillars that include infrastructure investment, cutting the cost of doing business, and unlocking private capital.
“Without structural change, GDP growth will average just 4 percent through 2030 (well below the NDS2 target) and Zimbabwe will not reach upper-middle-income status until 2036, six years behind its Vision 2030 goal,” said Mr Steenbergen.
Under the first pillar, which focuses on investment in foundational infrastructure, the Bank called for reforms aimed at improving energy reliability, transport connectivity, irrigation and agricultural market infrastructure.
In the energy sector, the Government was urged to adopt the National Integrated Energy Resource Plan as the main planning framework, maintain cost-reflective and competitive tariffs while protecting vulnerable consumers, and move towards competitive tendering supported by standardised power purchase agreements.
On transport, Mr Steenbergen recommended ring-fencing the ZINARA fuel levy and scaling up preventive road maintenance.
In agriculture, he proposed scaling up farmer-led irrigation through blended finance and prioritising the rehabilitation of economically viable irrigation schemes.
Under the second pillar, the World Bank urged the Government to create a business-enabling regulatory environment, focusing on reducing regulatory, trade and tax costs that discourage formalisation, suppress investment and constrain private-sector growth.
The Bank recommended publishing a comprehensive registry of business permits and fees and connecting border agencies to the Electronic Single Window.
It also called for streamlined permits and fees, fewer transaction points, risk-based regulation and digital licensing systems.
It further proposed consolidating ministries, departments and agencies where appropriate and shifting institutional mandates from revenue collection towards service delivery.
For MSMEs, the Bank recommended a whole-of-government business registration system, higher tax thresholds and digital, risk-based tax compliance.
It also called for a gradual reduction in PAYE and payroll levies to reduce the cost of formal employment.
Under the third pillar, the World Bank advocated for the mobilisation and de-risking of private investment, saying the Government should strengthen governance, property rights, land tenure and commercial justice to give investors greater confidence to commit capital.
This would help drive the structural transformation Zimbabwe has struggled to achieve by shifting workers and firms towards higher-productivity and better-paid activities.
Speaking at the launch, the Ministry of Finance, Economic Development and Investment Promotion’s Head of Debt Management Office, Mr Andrew Bvumbe, said the report came at an important time, as Zimbabwe had made significant progress in restoring macroeconomic stability.
He cited controlled inflation, greater exchange-rate stability and improved foreign-currency availability as key gains.
“We must now build on this foundation. Stability must translate into transformation, growth and jobs, and ultimately into better livelihoods for our people,” Mr Bvumbe said.
He said the report would deepen the Government’s understanding of the growth–jobs nexus, particularly whether economic expansion was translating into productive and decent employment.
“The report would also strengthen NDS2 targeting and provide a focused medium-term growth plan towards 2030,” he said.
He further noted that the findings would help shape policies supporting job-rich growth, skills development, entrepreneurship, investment and the transition from informal to formal employment.
