Economy News

A new World Bank report, 'The Zimbabwe Growth and Jobs Report', urges the country to convert recent economic stability into formal employment. According to New Zimbabwe, it notes growth averaged nearly 6% between 2021 and 2025, with inflation falling. Yet the report highlights that over 80% of workers remain in informal jobs, and the formal sector struggles with high taxes and regulatory burdens. The government's reliance on currency controls and state-led investment has failed to spur private-sector hiring. The core vulnerability is the disconnect between macroeconomic stability and the structural reforms needed to absorb Zimbabwe's growing labor force into formal employment.

CBZ Holdings is seeking yuan-denominated credit lines from Chinese lenders, moving to deepen the use of the Chinese currency in growing trade with China. The bank began settling transactions directly in CNY in June, offering an alternative to the US dollar. The shift signals a deliberate de-dollarization strategy, but analysts warn it exposes Zimbabwe to yuan volatility and Beijing's political leverage. Local businesses remain heavily reliant on the greenback, creating friction between policy goals and market reality. This move underscores Zimbabwe's deepening financial dependency on China, trading one currency hegemony for another.

Government spokesperson Nick Mangwana addressed the September 9 deadline for vendors operating from undesignated sites, warning of enforcement action. The ultimatum targets informal traders in Harare and other urban areas. The crackdown follows months of disputes between city councils and vendors, who argue the government has failed to provide designated trading spaces. Previous evictions have sparked protests and legal challenges. The deadline risks escalating tensions between the state and the informal sector, which employs millions, as authorities prioritize order over livelihoods.

The Zimbabwe Revenue Authority (ZIMRA) is expanding scrutiny of private rental properties, targeting landlords in Borrowdale Brooke and other areas. The tax drive aims to capture undeclared rental income. Landlords have raised concerns over aggressive enforcement and lack of clarity on tax thresholds, warning the move could push rental prices higher. Some accuse ZIMRA of overreach. The backlash exposes the government's struggle to broaden the tax base without alienating property owners, as informal rental markets remain largely untaxed.

The World Bank has cautioned Zimbabwe against rushing to end the use of the US dollar in the economy, warning it could trigger capital flight. Zimbabwe has set 2030 as the deadline to phase out the dollar and make the bullion-backed ZiG its sole currency. The warning was reported by Bloomberg and published by NewZimbabwe.com.

Zimplats has reported significant progress in resolving delayed payments from the Zimbabwean government after reaching a deal to use part of the money owed to settle taxes and other obligations. The mining company said the arrangement marks a step forward in resolving a long-standing payment dispute, as reported by The Financial Gazette.

Research firm IH Securities reports that Zimbabwe's tight ZiG supply is constraining consumers' purchasing power and reinforcing the dominance of the US dollar in transactions. The central bank's high interest rates and tight monetary policies have caused a severe cash shortage, suppressing local spending, according to The Financial Gazette.

Mashonaland Holdings is banking on the planned commencement of pre-sales for its development projects to unlock value and support future growth. The pre-sales strategy aims to generate upfront cash to fund construction and reduce reliance on external financing amid funding constraints, as reported by The Financial Gazette.

SuccessBank's profit after tax surged 542 percent to ZiG 41.99 million in the six months to June 30, 2026, supported by growth in core banking activities and a diversified revenue base. Fees and commissions income jumped 75 percent to ZiG 55 million, as reported by The Financial Gazette.

Starafrica Corporation is targeting a 39 percent increase in sales volumes to 83,000 tonnes for the year ending March 31, 2027, supported by improved pricing and penetration into informal markets. The target compares with 59,596 tonnes sold in the prior year, according to The Financial Gazette.

Nedbank Zimbabwe reported a 19 percent rise in half-year profit after tax to ZiG 113.2 million, underpinned by balance sheet growth, diversified revenue, and tighter cost management. The result compares with ZiG 95.2 million in the same period last year, as reported by The Financial Gazette.

OK Zimbabwe launched restocking after securing credit guarantees from two local banks. Major suppliers like Dairibord and Nestlé have resumed deliveries, signaling renewed confidence in the beleaguered retailer. This move suggests a tactical shift by banks, prioritizing commercial stability over default risks.

Zimbabwe's trade surplus widened to $320.6 million in July, up 34.1% month-on-month, driven by rising exports and falling imports. ZimStat data indicates improving external balance. However, the underlying reliance on commodity exports remains a structural vulnerability.

Econet Wireless has been recognized as Zimbabwe's leading tax contributor, highlighting its central role in government revenue. The telecom giant's payments underscore its strategic importance to state finances. This recognition may signal future leverage for Econet in regulatory discussions.

Zimbabwe's removal from the World Bank's list of fragile states has triggered a recalibration of international risk models. Analysts predict a surge in foreign direct investment as the country gains access to more favorable lending terms and investor confidence. However, the move bypasses ongoing concerns about governance and rule of law, leaving the reform narrative at odds with domestic realities.

The government is escalating its crackdown on smuggling syndicates, tax evasion, and revenue leakages with an aggressive enforcement campaign. Officials have deployed new tracking and audit mechanisms to intercept black-market currency traders and illicit goods networks. However, the timing raises questions of political selectivity, as the operation targets grassroots operators while high-level corruption cases remain unresolved.

The government defended ZIMRA's intensified crackdown on rental income, warning landlords that all rental properties must be taxed, according to iHarare. The tax authority requested tenant and owner details from upmarket estates like Borrowdale Brooke. Landlords protest the move as punitive, but the state's aggressive revenue collection reveals a fiscal vulnerability: Zimbabwe's budget relies on squeezing informal sectors rather than broadening the tax base. This approach highlights the government's struggle to expand its revenue base without stifling economic activity.

The Infrastructure Development Bank of Zimbabwe disbursed US$2.4 million to productive and infrastructure projects in the first half of 2026, as reported by the Daily News. The funds target agriculture, energy, and transport sectors. While the injection supports economic recovery, the amount is a fraction of the capital needed to address Zimbabwe's infrastructure deficit, which continues to hamper growth and deter private investment. This modest funding highlights the massive gap between Zimbabwe's infrastructure needs and available resources.

iHarare reports that Finance Minister Mthuli Ncube is celebrating the World Bank's removal of Zimbabwe from its Fragile and Conflict-Affected Economies list. Ncube argues this reclassification validates the ongoing currency and fiscal reforms, signaling a major shift in the country's international standing. However, the country still faces deep liquidity crises, with an informal economy that remains the primary engine for most citizens, and critics argue the World Bank's decision does not reflect the daily economic realities for the average Zimbabwean. The government will now need to leverage this improved status to attract foreign investment and tackle the structural issues that continue to impede broad-based growth.

Daily News reports that Sandawana Mine has set a $140 million revenue target for 2026, positioning itself as a key asset in Zimbabwe's lithium extraction strategy. The state plans to aggressively ramp up production, but operational hurdles including power shortages and equipment failures remain. The gamble is that the state can capture value from the global green transition while managing deep infrastructure deficits. The mine's success is critical to the government's broader economic ambitions.

The World Bank delisted Zimbabwe from its Fragile and Conflict Affected Economies list effective July 1, 2026, a move Finance Minister Mthuli Ncube hailed as direct confirmation of reform impact. NewZimbabwe.com reported the decision removes the country from a category that previously flagged governance and instability risks. Critics argue the delisting masks persistent political repression and unresolved land disputes that continue to deter foreign direct investment. Local economists warn the World Bank's gesture may be premature, given Zimbabwe's ongoing currency volatility and debt arrears. The core vulnerability remains the government's reliance on symbolic international endorsements to paper over deep structural economic fractures that no reclassification can heal.

Nedbank Zimbabwe announced construction of a new headquarters in Harare's Highlands suburb, citing confidence in the country's improving operating environment. The Financial Gazette reported the investment comes as Zimbabwe pursues economic reforms under the gold-backed ZiG currency with inflation moderating to single digits. The new headquarters is expected to be completed by 2028, signaling a long-term commitment to the Zimbabwean market. Skeptics note that Nedbank's move is a long-term bet on a market still plagued by foreign currency shortages and sporadic policy reversals. The core vulnerability is whether this single vote of confidence can offset the broader capital flight and investor wariness that persists despite the ZiG's initial stability.

iHarare reports that Zimbabwe could record a massive 965,000-tonne grain reserve surplus as strong harvests boost national food security and grain stocks. The surplus provides a buffer against potential shortages, but distribution challenges and currency instability threaten to undermine the gains. The government faces pressure to manage the surplus effectively amid ongoing economic volatility and a history of mismanagement. Agricultural experts warn that without proper storage and logistics, the surplus could be wasted. This development comes as the country grapples with a housing crisis and political tensions, highlighting uneven resource distribution. The surplus offers a rare positive economic indicator but requires careful policy implementation to benefit the population and reduce reliance on imports.

Daily News reports that Stanbic Bank Zimbabwe recorded a 26% increase in profit after tax to ZiG858.4 million for the six months. The rise comes despite the country's economic volatility and currency instability. The bank's performance highlights the resilience of the financial sector, but critics question whether profits are driven by high fees and speculative trading. The profit surge contrasts with the struggles of ordinary Zimbabweans facing inflation and unemployment. The bank's success may attract regulatory scrutiny and calls for greater consumer protection. Analysts warn that the profit growth may not be sustainable without economic reforms.

Blue Ribbon and 23 other millers have ceased operations in Bulawayo, citing a severe shortage of locally produced maize for the southern region. The Grain Millers Association has formally notified the ministries of industry and agriculture, exposing a widening food supply crisis. The closures threaten to deepen regional dependency. They also risk fuel price spikes. This comes amid government inaction.

Zimbabwe has proposed paying US$1 million quarterly against a US$50 million debt to South African Airways, exposing its severe liquidity constraints. South Africa's international relations department faces parliament over the recovery efforts. The payment schedule risks straining bilateral ties. It underscores Zimbabwe's limited fiscal maneuverability. Critics say the offer is inadequate and delays resolution.

Citigroup reports that Zimbabwe is undergoing a faster economic turnaround than widely perceived, breaking from its hyperinflationary past. The US investment bank, citing IMF oversight, warns the nation's pariah status deters investors. This contradiction between recovery data and global reputation creates a unique leverage point. Reform advocates see an opening. They argue perception lags behind reality.

Tsingshan Holding Group is considering tripling output at its new Zimbabwe steel plant, a move that would strain South Africa's struggling steel industry. The expansion at Manhizhe targets two million tonnes, intensifying regional competition. The plant's ramp-up threatens to flood South African markets, exposing the fragility of its domestic steel sector against cheaper imports from a politically connected Chinese giant.

Zimbabwe's ZWG annual inflation dropped to 2.9% in August, with month-on-month inflation stable at 0.1%, a trend reported by ZimStat. The central bank's tight monetary policy is forcing a fragile deflationary trend, but nominal stability masks a core vulnerability. The country's dollarized informal economy remains resistant to official controls, and any policy misstep could reignite the inflationary spiral that has historically wrecked savings.

Reserve Bank Governor John Mushayavanhu credited single-digit inflation and exchange rate stability for shielding Zimbabwe from Middle East oil price shocks, per NewZimbabwe.com. Delivering the mid-term monetary policy statement on August 22, he noted the ZiG currency held steady from January through July. But businesses warn the stability is fragile, propped up by tight monetary controls and low demand. Any external shock or policy misstep could reignite hyperinflation. The vulnerability: Zimbabwe's economic recovery remains dependent on continued tight policy and favorable global conditions.

Mutapa Gold Resources plans to formalise hundreds of artisanal miners at its Freda Rebecca operation in Zimbabwe, aiming to tighten control over informal gold extraction. The formalisation drive clashes with the powerful, often violent, artisanal mining sector. The move creates friction between state-backed corporate interests and the informal miners, a tension that could escalate into local disputes and regulatory enforcement challenges.

Zimbabwe's deputy central bank governor Innocent Matshe claimed the country has met all targets under the IMF's Staff Monitored Program. This confidence clashes starkly with the reality of an economy battling hyperinflation and pervasive corruption that usually derails such agreements.

The Treasury disbursed over US$10 million to the Grain Marketing Board to clear farmer payments, as reported by the Daily News. This injection aims to ease a cash crunch that has stalled the agricultural cycle. The move reveals a vulnerability: the government's reliance on last-minute bailouts to prop up a sector already stressed by inflation and input shortages.

Zimra has ordered all commercial enterprises to digitize internal accounting structures to align with its new digital tax push. The move, as reported by Daily News, mandates real-time reporting and tightens audit trails. Businesses now face a binary choice: comply or face heightened scrutiny in a system designed to bypass traditional evasion channels.

Kenya's ban on sugar imports has severely choked Zimbabwean producers, with export volumes tumbling 59% in the first quarter ended June 30, 2026. Hippo Valley Estates chair Canaan Dube reported that only 15,711 tons were exported, forcing producers to seek alternative regional markets. The ban, imposed by Kenya to protect its domestic industry, has exposed Zimbabwe's overreliance on a single export destination. Local producers now face the strategic vulnerability of limited market diversification and must urgently negotiate new trade corridors or risk further revenue losses.

Old Mutual shares resumed trading on Zimbabwe's dollar-denominated Victoria Falls Stock Exchange on Wednesday after a six-year suspension, NewZimbabwe.com reported. The stock debuted at 76 US cents and advanced 2.9% to close at 78.17 cents. The suspension was originally imposed to curb a currency rout caused by the company's dual-listed structure that allowed arbitrage. The relisting follows a protracted battle between regulators and investors over that structure, which had distorted the local market. The move signals a tentative thaw in Zimbabwe's capital markets and renewed investor confidence, potentially stabilizing the ZiG. However, the underlying vulnerability remains the government's history of using financial controls to manage currency crises.

Zimbabwe's diaspora remittances surged to $2.45 billion in 2025, with the UK overtaking South Africa as the top source, accounting for $709.6 million. This 14% year-on-year increase injects vital foreign currency into households and an economy where remittances now support over 8% of GDP, but it underscores deepening dependence on external earnings amid ongoing local currency instability.

Finance Minister Mthuli Ncube has proposed linking council licence renewals to tax compliance for vendors, a move reported by ZimEye that targets the informal sector and aims to boost revenue. The move targets the informal sector as government revenues dwindle amid a widening fiscal deficit and declining tax collections from formal businesses and a shrinking tax base, putting pressure on the state. Vendor associations have clashed with the proposal, arguing it punishes small traders for state mismanagement and poor economic policies that have driven many into the informal sector. Critics note that the informal economy already faces heavy levies without corresponding services or infrastructure support, making the new tax burden unfair. The core vulnerability is the government's reliance on squeezing an already strained informal sector rather than broadening the formal tax base or curbing elite corruption, a strategy that risks further economic contraction.

Edgars Stores has announced it will voluntarily delist from the Victoria Falls Stock Exchange (VFEX) pending necessary regulatory approvals, the Financial Gazette reported. The clothing giant, which debuted on VFEX in April 2024, cited strategic reasons for the move without providing further details to the market. The delisting follows a short tenure on the exchange, raising serious questions about VFEX's ability to retain listings and attract long-term investors. Edgars had previously migrated from the Zimbabwe Stock Exchange to access hard currency and international investors, but the exit now completely undermines that rationale and raises doubts about VFEX's value proposition. The macro pressure now shifts to VFEX's credibility as a listing destination, which must prove it can offer sustained liquidity and regulatory certainty to avoid further departures and restore confidence.

Zimbabwe has been ranked third on a key African index for budget transparency and fiscal openness, as reported by the Daily News, highlighting significant progress in fiscal governance. The ranking places the country behind South Africa and one other nation, reflecting improvements in published fiscal documents and government accountability efforts, though critics remain skeptical. The achievement clashes with persistent complaints from civil society about opaque procurement and off-budget spending that undermine accountability and public trust in the government. Critics argue the index measures published documents, not actual implementation or adherence to fiscal rules, creating a misleading picture of fiscal discipline and transparency. The core vulnerability is the gap between transparency rankings and real fiscal accountability, where published budgets often diverge from executed expenditures, eroding public confidence in the system and its credibility.

Edgars Stores Limited is set to voluntarily delist from the Victoria Falls Stock Exchange (VFEX), signaling a new chapter focused on agility and long-term growth in Zimbabwe's evolving retail landscape. The company views the move as a necessary adaptation to the dynamic challenges posed by an expanding informal market and changing consumer preferences. Announced ahead of broader market deterioration, the delisting underscores the fundamental disconnect between state-backed offshore capital markets and the operational realities of local retailers.

Zimbabwe overtook Nigeria as Africa's best-performing stock market, driven by currency reforms and mining gains. The rally masks deep vulnerabilities from hyperinflation and foreign investor flight.

President Mnangagwa courted investors for Special Economic Zones at a summit. The pitch struggles against policy inconsistency and power shortages that undermine investor confidence.

Finance Minister Ncube pledged macroeconomic stability amid currency volatility and inflation. The promise faces scepticism as deficits and parallel market rates erode public trust.

Finance Minister Mthuli Ncube will present the highly-anticipated mid-term budget review in Harare today, as reported by Daily News. The review comes amid a severe economic crisis, with inflation soaring and currency instability. The friction: opposition and civil society groups expect austerity measures that could deepen hardship, while the government seeks to reassure international lenders. The core vulnerability: Ncube's fiscal targets may be undermined by mounting public debt and a shrinking tax base, making it difficult to balance spending cuts with social protection needs.

Afreximbank finalized a US$190 million financing package for CBZ Bank Limited, signed in El Alamein, Egypt. The deal includes three facility agreements aimed at supporting Zimbabwe's economic growth, according to ZimGazette. This injection of liquidity comes as Zimbabwe faces severe foreign currency shortages and a struggling economy. The friction: while the loans provide short-term relief, they deepen Zimbabwe's reliance on external credit lines, with Afreximbank gaining significant leverage over the country's banking sector. The core vulnerability: CBZ's exposure to sovereign risk could strain repayment capacity, especially if the economic downturn persists and foreign currency reserves remain depleted.

Zimbabwe won the Best International Exhibitor Award at a Zambia trade show, recognizing its exhibition's excellence and innovation. iHarare News reported the achievement. The friction: while a diplomatic win, the award contrasts with Zimbabwe's struggling domestic economy and trade deficits. The core vulnerability: international accolades may mask underlying economic weaknesses, and the country needs to translate such recognition into tangible trade deals and investment inflows to boost local industries.

Zimbabwe has paid $40 million in compensation to 93 farms protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs), with $70.5 million still outstanding, according to New Zimbabwe. The payments are part of a broader debt resolution plan under the Structured Dialogue Platform on Arrears Clearance. Critics argue the slow pace of compensation undermines investor confidence and land reform credibility, as the government struggles to meet its obligations. The compensation scheme exposes Zimbabwe's fiscal constraints and reliance on foreign goodwill to clear arrears. The core vulnerability: the government remains vulnerable to donor pressure and faces ongoing challenges in balancing land reform commitments with economic recovery efforts.

Finance Minister Mthuli Ncube has urged Zimbabwe to formally regulate cryptocurrency, arguing that embracing digital assets will unlock economic opportunities and attract investment, as reported by Daily News. The minister's push signals a potential policy shift for the country, which has previously been cautious on crypto. Critics warn that without robust oversight, cryptocurrency could fuel capital flight and tax evasion in a fragile economy already struggling with inflation. They argue that the central bank's inability to control currency stability makes crypto regulation risky. The core vulnerability: Zimbabwe's push for crypto regulation risks legitimizing a volatile asset class while the central bank struggles to maintain monetary control, potentially exacerbating economic instability.

Zimbabwe has paid US$40 million to 93 farms under Bilateral Investment Protection and Promotion Agreements (BIPPAs), part of a US$130.5 million program to clear land claims. The government is accelerating compensation to eligible former farm owners, aiming to resolve long-standing disputes over land seizures. The push faces internal friction from war veterans challenging the legal basis of the compensation, with a court case pending.

Finance Minister Mthuli Ncube will headline a highly anticipated post mid-term budget review breakfast meeting, set to address Zimbabwe's fiscal trajectory and economic reforms. The event, organized by business and policy stakeholders, comes after the government's mid-term review signaled mixed results on revenue targets and expenditure controls. Ncube is expected to field questions on currency stability, inflation, and debt arrears clearance.

Some businesses have remained closed for fear of violent protests, but others are operating as usual, NewsDay reported.

The Zimbabwe Revenue Authority is developing systems to monitor e-commerce transactions and strengthen real-time fuel tracking to plug revenue leakages and curb tax evasion, the Financial Gazette reported. Speaking at the ICAZ Winter School in Victoria Falls, Zimra regional manager Gamuchirai Makwangudze said the tax authority is moving to capture the growing digital economy.

South African cement producer PPC Limited is bullish on its Zimbabwe operations, citing strong local demand and improved commercial execution that lifted profitability, the Financial Gazette reported. The company said Zimbabwe experienced strong underlying demand during the financial year ended March. The performance boosted the group's foreign currency earnings. PPC's bullish stance reflects confidence in sustained demand. The cement producer's results signal resilience in a challenging economy.

Mozambique granted a 25-year concession to two Chinese firms to build and operate a one-stop border post at Machipanda, linking Mozambique to Zimbabwe, NewZimbabwe.com reported. The $30 million public-private partnership gives the Chinese companies a dominant 75% stake, with Mozambique’s government holding 15% and local businesspeople 10%. Construction is expected to start soon. The deal follows a pattern of Chinese infrastructure investments deepening Beijing’s economic footprint in southern Africa. The border post aims to streamline trade, but it raises concerns about debt sustainability and strategic control of critical logistics corridors. Zimbabwe’s access to the port of Beira could become contingent on Chinese-operated infrastructure, shifting regional power dynamics.

Delta Corporation posted record-breaking sales, the Daily News reported, driven by high local demand for alcoholic drinks that continues unabated despite economic headwinds. The beverages giant’s performance underscores resilient consumer spending in a market battered by currency volatility. However, the boom masks underlying risks: rising excise taxes and potential regulatory crackdowns on alcohol marketing could squeeze margins. The surge in consumption also raises public health concerns, putting pressure on authorities to balance revenue generation with social costs. Delta’s growth is tethered to discretionary spending that could evaporate if inflation accelerates or new sin taxes bite.

Finance Minister Mthuli Ncube declined to allocate a supplementary budget in the mid-term review, NewZimbabwe.com reported, asserting that Treasury has enough fiscal space to carry out programs through year-end. The decision signals confidence in revenue collections and spending controls. Ncube highlighted economic growth drivers and a surge in FDI, but critics warn that unfunded pressures—including civil service wages and returnee support—could force off-budget spending. The review maintained the theme ‘Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030.’ The no-supplementary stance will be tested by inflation risks and potential social unrest. If revenue underperforms, the government may face a mid-year cash crunch, forcing it to resort to domestic borrowing or money printing, which could destabilize the currency.

Zimbabwe’s gold export earnings surged in the first half of 2026, NewsDay reported, with consistent year-on-year growth underscoring the sector’s resilience. The performance provides critical foreign currency inflows, supporting the local currency and overall economic stability. The surge provides a much-needed boost to foreign reserves. Sustained growth could significantly bolster the country’s fiscal position. However, the sector faces persistent governance challenges, including smuggling and opaque licensing, which siphon off potential revenue.

A District of Columbia federal judge granted enforcement of two awards from the International Centre for Settlement of Investment Disputes (ICSID) worth over $320 million against Zimbabwe, ZimGazette reported, in a decades-long multinational dispute. One award favors Swiss and German owners of plantations seized during land reforms. The ruling targets compensation for those plantations, clearing the way for the investors to pursue assets of Zimbabwe’s government. The ruling comes after decades of stalled payments by Zimbabwe. This poses a severe financial threat that could lead to asset seizures abroad and escalates the dispute into an immediate sovereign risk with far-reaching economic consequences. The decision marks a significant escalation in the long-running legal battle over Zimbabwe's land reform program.

Finance Minister Mthuli Ncube presented a mid-term budget review, the Daily News and NewZimbabwe.com reported, making no major policy shifts and declining a supplementary budget. He pledged to maintain macroeconomic stability and highlighted a surge in foreign direct investment to US$965 million. The review, under the theme ‘Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030,’ builds on recent reforms that have tamed inflation and stabilized the local currency. Ncube emphasized that Treasury has sufficient fiscal space to fund programs through year-end. However, looming pressures from civil service wage demands and the cost of reintegrating returnees from South Africa could test this fiscal discipline.