Zim economy on growth trajectory

 

Tapiwanashe Mangwiro

ZIMBABWE’S economy remains firmly on course for sustained expansion over the next three years, analysts have said, even as global headwinds test the resilience of the emerging markets.

Despite the intensifying global trade war, rooted in US President Donald Trump’s tariffs and volatility in commodity prices, except gold, economists believe the global recent policy shifts and Zimbabwe’s robust sectoral performance underpin its projected strong growth path.

Zimbabwe’s economy is projected to grow by 6 percent this year, driven by the recovery in agriculture following the El Niño drought last year, improvements in electricity generation and expected stability in commodity prices in the mining sector

They see Government-led initiatives to deepen mineral output, beneficiation, accelerate manufacturing growth, and stimulate the importation of capital goods as critical pillars supporting the economic outlook.

“Zimbabwe possesses a solid foundation for growth with focused beneficiation policies that add value locally rather than exporting raw materials,” said Dr Abigail Chakona, a senior economist at the Harare-based Institute for Development Studies.

“Through processing minerals domestically, the Government not only captures greater revenue but also creates jobs and builds technical capacity for future industrialisation.”

Concrete evidence of this policy’s positive impact emerged in the first quarter of 2025, where official data showed a 15 percent year-on-year rise in processed platinum outputs, reflecting increased capacity at domestic refineries.

Analysts said the upward trend mirrors a broader shift towards value addition in the mining sector, with gold, chrome and ferrochrome also earmarked for enhanced downstream processing.

Manufacturing has likewise recorded steady gains.

Recent figures released by the Zimbabwe National Statistics Agency (ZimStat) indicate a 12 percent surge in manufacturing output compared to the same period last year. The growth spans agro-processing, textiles and construction materials.

“We are seeing capital goods imports rise by nearly 20 percent as local firms upgrade machinery to meet higher production standards and fulfil export orders,” explained Nathaniel Mawere, head of research at Alistair and Roberts consultsancy.