Zimbabwe

Zimbabwe is situated in Southern Africa, bordering Mozambique, South Africa, Botswana and Zambia to the east, south, west and north, respectively. The country is landlocked with a total area of approximately 390,757 square kilometres. It has a population of about 15 million and a GDP of UD$26.2bn.

Key industries are mining, agriculture and tourism with agriculture the backbone of the economy which is dependent on rainfall and susceptible to weather or climate variations that include droughts and floods. The agriculture sector is made up of agro-estates, a large-scale commercial sector, a medium-scale commercial farming sector and a smallholder farming sector. It is dominated by more than 1.3 million smallholder farmers, most of which are using traditional farming methods that lead to low production. Exports of agricultural commodities and minerals (led by gold, nickel, and tobacco) account for nearly 90% of total merchandise exports.

The land redistribution from the white minority to black Zimbabweans began in the 1990s and gathered speed after 2002 and is one of the most cited causes for the economic decline, although many other factors played a role. Zimbabwe’s currency is the Zimbabwean dollar although it uses a multi-currency system with the US dollar and South African rand freely exchangeable along with the Zimbabwean dollar.

Maize is an important crop with 80% of the population is directly involved in its production and The Grain Marketing Board of Zimbabwe receives 75% of its grain from smallholder/communal farmers. Other food crops include wheat, millet, tobacco, sorghum, barley, soybeans, cotton, sugar, tea, groundnuts, seed maize and horticulture crops (potatoes, peas, and other vegetables). Prior to the agriculture decline, Zimbabwe was the largest producer of tobacco in Africa, and tobacco is still the country’s main cash crop and a substantial earner of foreign exchange.

Sugarcane is grown under canal irrigation in the Chiredzi District of Masvingo Province. About 80% of Zimbabwe’s sugarcane crop is produced by two large estates, Triangle Sugar Estate (owned by Tongaat Hulett) and Hippo Valley Estate (Tongaat Hulett is the largest shareholder through Triangle Sugar Estate with a 50.35% shareholding). Private farmers, including large and small-scale farmers, produce the remaining 20% of the sugar cane crop.

Zimbabwe's second-largest sector is mining which includes gold, platinum group metals, chrome, coal, diamonds, and lithium. It is estimated that Africa will supply about 90,000t of contained lithium by 2030 amounting to 23% of global supply with Zimbabwe contributing 39% of that figure.

Tourism is the third-largest sector and has the potential to play a significant role in the country’s economic recovery. Zimbabwe has several national parks and natural attractions such as Hwange, Mana Pools, and Gonarezhou National Parks, Victoria Falls, Lake Kariba, and the Great Zimbabwe National Monument.

Historically Zimbabwe has had runaway inflation which is estimated to have averaged 213% in 2022 and expected to remain in triple digits in 2023. Real GDP growth is expected to be 3.6% in 2023 and 2024, supported by a better agricultural season, slowing inflation, and the relaxation of pandemic requirements.


Sources: Who Owns Whom sector reports, CIA Factbook, African Development Bank, World Bank, Trading Economics, African Statistical Yearbook and IMF.