Zimbabwe’s Economy Shows Resilience Amid Severe Drought and Debt Isolation, Finance Minister Says

Zimbabwe’s Economy Shows Resilience Amid Severe Drought and Debt Isolation, Finance Minister Says

Zimbabwe’s economy is displaying unexpected resilience despite severe drought and limited access to international capital, Finance Minister Mthuli Ncube stated in an interview on Bloomberg TV.

Speaking from Johannesburg, Ncube highlighted the country’s 2% economic growth forecast for 2024, marking a recovery from the 7% contraction in 2019, when the nation also battled adverse weather conditions.

The minister attributed Zimbabwe’s recent economic stability to prudent financial management, noting the government’s efforts to operate “within our means.”

A projected budget deficit of 1.4% of GDP by year-end is among the lowest Zimbabwe has recorded in recent years. Additionally, the nation has maintained a current account surplus for six consecutive years, reducing pressure on its currency and bolstering financial stability.

The El Niño-induced drought that devastated Zimbabwe, like neighbouring Zambia and Malawi, caused widespread crop failures across southern Africa.

Corn is Zimbabwe’s main staple crop, and the drought decimated its yield, destroying roughly 75% of what subsistence farmers who depend on rainfall produce.

A bumper wheat harvest is anticipated this year, though, as the nation’s commercial farms that rely on irrigation were able to avoid significant losses.

“We’re going to be self-sufficient for wheat,” Ncube noted, adding that the country has produced almost 600,000 metric tonnes of wheat and anticipates exporting surplus stocks.

As part of a broader drought mitigation strategy, Zimbabwe will expand agricultural insurance coverage to more areas in 2025 to help manage future climate risks.

In response to the drought, Zimbabwe recently received $32 million from the African Union’s climate insurance agency as part of a larger $60 million regional payout to drought-affected countries.

This support reflects a growing commitment to climate resilience in southern Africa, especially for countries heavily dependent on agriculture.