Focus on Zimbabwe Economic prospects:

 

Zimbabwe’s external public and publicly guaranteed debt (PPG) stands at $12.7 billion (May 2024), consists of bilateral debt (USD 6 billion), multilateral debt (USD 3.1 billion), and debt from the Reserve Bank of Zimbabwe (USD 3.6 billion). The IMF estimated the debt-to-GDP ratio at 95.4% in 2023 while South Africa was 75% and Zambia at 73%.

Zimbabwe’s exports destinations are South Africa 41.8%, UAE 32.3%; China 8.9%; Belgium 3.3% and Mozambique 2.9%.

Its imports come from South Africa 40.5%, China 13.9%, Singapore 13.6%, Mozambique 3.8% and Mauritius 3.7%

Analysis:

Despite currency instability and high inflation, economic activity in Zimbabwe demonstrates resilience. GDP growth was projected at 5.3% in 2023, driven by expansion in agriculture and mining, as well as foreign currency inflows and remittances supporting domestic trade and services, as result of exodus of Zimbabweans due to lack of opportunities at $2.1 billion (2023). However, growth is anticipated to slow to around 3.25% in 2024, partly because of drought on agriculture production and decreased commodity prices. These factors are anticipated to impact foreign currency inflows, but remittances should remain robust, and the current account is forecasted to have a small surplus (IMF).

If you need research and investment appraisals, please inbox Elliot Pfebve, a UK based Consultant and academic.