Story by Stanley James, Business Editor
THE African Development Bank (AfDB) has projected strong growth for Zimbabwe’s economy, forecasting expansion of more than four percent by year-end, driven by agriculture, mining, construction, retail and distribution.
According to the bank’s latest macroeconomic outlook for Africa, Zimbabwe is among economies expected to record positive growth despite global economic headwinds.
The AfDB projects Zimbabwe’s growth at 4.5 percent, broadly in line with Treasury’s five percent target, with mining and agriculture expected to anchor the expansion.
Director of the Business School at the University of Zimbabwe, Professor Albert Makochekanwa, described the forecast as a vote of confidence in the country’s economic trajectory.
“This is a vote of confidence by the bank considering the current global shocks, so giving such a prediction sends signals that what the government is doing is paying off in as much as the journey to the five percent growth rate is concerned.”
While the AfDB urged developing economies, including Zimbabwe, to guard against geopolitical tensions, climate-related shocks and fluctuating global commodity prices, prudent fiscal and monetary policies were identified as critical to sustaining growth.
Economist Moses Chundu emphasised the need for vigilance in managing both external and domestic risks.
“This is the right time the nation should take into account that there are so many external and local factors that might hinder growth targets, so it is prudent to do the best by continuously reviewing the current indicators, identifying challenges, including charting the way forward,” he said.
The AfDB has joined other global financiers, including the International Monetary Fund and the World Bank, in endorsing Zimbabwe’s growth trajectory.
