Zimbabwe’s economy is forecast to remain resilient, with the World Bank’s Zimbabwe Economic update 2025 predicting five percent growth in 2026 driven by robust activity in agriculture, industry, and services.
The report, released this week, emphasises that to sustain this momentum, the country must press ahead with deeper reforms and resolve long-standing structural constraints that hinder competitiveness.
This is an undertaking for which the Government is already implementing measures through the Presidential Ease of Doing Business Initiative, designed to enhance the business environment, attract investment and promote private sector growth.
At the start of the year, President Mnangagwa raised concerns about the excessive levies, licences, fees and permits imposed by Government departments, which increase the cost of doing business in the country.
He mandated a review of these charges across 12 key sectors to support the ease of doing business initiatives.
These reforms are being implemented in phases, with an initial focus on the agriculture, retail, tourism, and transport sectors.
The initiative is aimed at enhancing the profitability of businesses and stimulating economic activity by slashing fees and simplifying compliance to enhance the ease of doing business.
By tackling long-standing red tape, the Government seeks to create a modern and efficient business climate.
In its report, Zimbabwe Economic update 2025, released yesterday under the theme; “Fostering a Business-Enabling Regulatory Environment for Private Sector Growth,” the World Bank forecasts continued economic resilience, saying, “Growth is anticipated to remain elevated at five percent in 2026, due to robust growth in agriculture, industry and services.”
Further, the report notes the Reserve Bank of Zimbabwe’s commitment to consolidating price stability following the introduction of the new currency.
“In parallel, the RBZ plans to adhere to its commitment to control the supply of reserve money effectively, with the aim of stabilising the new Zimbabwean currency and supporting durable macroeconomic stability. As a result, inflation is expected to moderate to single digits in 2026 and decrease further to five percent over the medium-term.”
The global lender emphasises that maintaining growth hinges on accelerating and embedding reforms.
“To sustain Zimbabwe’s recent growth momentum, it is imperative to deepen ongoing reforms and tackle enduring structural constraints.”
Central to this, the report adds, is successful implementation of the Government’s ease of doing business initiative.
“By prioritising these policy actions, Zimbabwe can reinforce its recent gains, boost competitiveness, and translate economic growth into lasting economic benefits.”
The World Bank also urges policymakers to safeguard stability through disciplined economic management.
“Continued efforts are also needed to durably anchor the existing price and exchange rate stability, which will support economic growth and job creation. Strong monetary and fiscal safeguards are required to avoid reversing the prevailing stability gains.”
According to the report, notable regulatory streamlining has already taken place.
The first phase of reforms, completed in September 2025 with analytical support from the World Bank, targeted the beef, dairy, stockfeed, and tourism sectors, leading to the elimination or reduction of AMA levies, EMA charges, and Consignment-Based Conformity Assessment (CBCA) requirements for equipment imports.
“These measures are projected to reduce compliance costs by 19 to 94 percent, depending on firm size and sector.”
The Government is further advancing domestically driven reforms in the transport and retail sectors, while additional reviews are underway in energy, manufacturing, and several agriculture sub-sectors to rationalise licensing and fee structures.
“Together, these actions represent an important step toward a more transparent, efficient, and business-enabling regulatory environment.”
The World Bank outlines a reform agenda anchored on three pillars — transparency, simplification, and governance — which it says can lower compliance costs, strengthen accountability, and enhance competitiveness.
A predictable regulatory system, it notes, is essential for investor confidence.
“Zimbabwe has already begun cataloguing all licences, fees and permits across 12 priority sectors and launched the ZIDA e-Regulations portal.”
The report recommends ensuring the registry remains comprehensive and updated.
“A unified public registry of business regulations would enable consistency, reduce uncertainty, and strengthen investor confidence.”
On simplification, the report stresses the importance of cutting red tape.
“Streamlining will help lower costs for firms, especially SMEs, while allowing regulators to allocate resources more efficiently.”
For governance, stronger institutional coordination is required.
“This includes clarifying institutional mandates, reviewing agency fee structures, and ensuring regulations serve the public interest rather than institutional revenue needs.”
The World Bank further underscores the need for strong accountability mechanisms.
“Clear accountability, backed by a legal framework for Regulatory Impact Assessments (RIAs), will help prevent regulatory proliferation and maintain policy coherence across ministries.”
A more robust regulatory ecosystem, it argues, is crucial for unlocking private investment, fostering entrepreneurship, and expanding formal sector participation.
“A predictable and accountable system is essential to unlock private investment, foster entrepreneurship, and expand formal sector participation.”
The report concludes that the success of ongoing reforms will depend on institutional capacity and implementation discipline.
“Effective implementation of these reforms — anchored in strong institutional leadership and improved administrative efficiency — can lower compliance costs, stimulate firm growth, and lay the foundation for a more competitive and inclusive economy.”
