Harare: Following recent progress on macroeconomic stabilization, Zimbabwe has a timely opportunity to build long-term economic momentum and expand formal job opportunities, according to a new World Bank Group report launched today. The report emphasizes the importance of leveraging the current stability to foster significant economic growth and create up to 230,000 new jobs by 2040.
According to African Press Organization, the Zimbabwe Growth and Jobs Report notes that fiscal and monetary discipline brought local currency inflation into single digits in early 2026, for the first time since 1997, supporting real GDP growth averaging nearly 6% between 2021 and 2025. However, this economic growth has not yet translated into widespread improvements in productive employment or household incomes. Currently, 80% of Zimbabweans work in the informal sector with median earnings of $130 per month, and nearly half the population lives below the international poverty line. Labor has largely shifted from agriculture into low-productivity retail and informal services rather than formal manufacturing or high-value service sectors.
The report indicates that continuing on the current course would yield an average growth rate of 4% through 2030, delaying Zimbabwe's goal of attaining upper-middle-income country status until 2036. Alternatively, accelerating key structural reforms could significantly boost real GDP by an additional 10.7% by 2030 and 26.9% by 2040 above the baseline, supporting the creation of up to 230,000 new jobs and increasing real worker earnings by more than 30% over the same period.
The World Bank Group report highlights four priority areas for policy attention: maintaining macroeconomic stability and resolving arrears to restore access to concessional external financing; investing in foundational infrastructure such as power generation and grid reliability; improving the regulatory environment to encourage small enterprises to invest, expand and formalize; and fostering private sector investment through stronger land tenure and commercial justice, financial sector deepening, expanded credit access, and improved regulatory certainty for foreign investors.
Victor Steenbergen, World Bank Senior Economist and lead author of the report, stated, "The window of opportunity created by recent stabilization is open, but decisive and coordinated execution over multiple years will be essential. Focusing initially on power sector reliability and trade facilitation will yield rapid dividends. This sets the stage for deeper legal and financial sector reforms that build lasting investor confidence."