World Bank Calls for Deeper Reforms to Sustain Zimbabwe’s Growth Momentum

A new World Bank publication, the Zimbabwe Economic Update 2025, warns that the country’s recent positive economic performance can only be sustained if government accelerates reforms and removes long-standing structural barriers that continue to weigh down competitiveness.

Released under the theme “Fostering a Business-Enabling Regulatory Environment for Private Sector Growth,” the report highlights the importance of a predictable, efficient and investor-friendly regulatory system.

Government has already rolled out several measures through the Presidential Ease of Doing Business Initiative, a major programme designed to improve the operating environment, attract new investment and strengthen private-sector-driven growth.

According to the World Bank, Zimbabwe’s economy is expected to remain resilient over the next year, with growth projected at 5 percent in 2026, supported by strong performance in agriculture, manufacturing and services.

The report also acknowledges the Reserve Bank of Zimbabwe’s commitment to entrenching price stability following the introduction of the new currency.
“The RBZ intends to maintain firm control over reserve money to support the stability of the new Zimbabwean currency and help secure long-term macroeconomic stability,” the Bank notes. Inflation is forecast to fall to single digits in 2026, and potentially drop to 5 percent in the medium term.

However, the World Bank stresses that maintaining momentum requires deeper and more consistent reforms.

“To preserve recent gains, Zimbabwe must intensify ongoing reforms and address structural constraints that have persisted for years,” the report says. Successful delivery of the Presidential Ease of Doing Business Initiative is identified as central to this effort.

The lender also urges government to maintain disciplined economic management.
“Zimbabwe must safeguard the current price and exchange rate stability. Strong monetary and fiscal measures are necessary to protect the progress achieved so far,” it warns.

The report notes significant steps already taken to streamline regulations.
The first phase of reforms, completed in September 2025 with World Bank technical support, focused on the beef, dairy, stockfeed and tourism sectors.

This resulted in the removal or reduction of various regulatory charges, including AMA levies, EMA fees and CBCA requirements for imported equipment.

These changes, depending on sector and business size, are expected to cut compliance costs by **19 to 94 percent**.

Government is also advancing domestic reforms in the transport and retail industries, with further assessments under way in energy, manufacturing and several agricultural subsectors aimed at simplifying licenses and fee structures.

“Collectively, these actions mark progress toward a more transparent, efficient and business-friendly regulatory environment,” the report highlights.

The World Bank sets out a reform framework built on transparency, simplification and governance, which it argues is essential for boosting competitiveness and lowering compliance burdens.

Zimbabwe has already started cataloguing all business licenses, permits and fees across 12 priority sectors and has launched the ZIDA eRegulations portal.

The Bank recommends ensuring this registry remains complete and regularly updated, noting that a unified public system improves predictability and investor confidence.

On reducing bureaucracy, the report underscores the need to streamline processes to cut costs for businesses — particularly SMEs — and enable regulators to operate more effectively.

Improved governance, it adds, will require stronger institutional coordination, clearer mandates, revised fee structures and regulations that prioritise public interest instead of institutional revenue generation.

The Bank also emphasizes the importance of accountability.
Introducing a legal requirement for Regulatory Impact Assessments (RIAs) would help prevent unnecessary regulations and support coherent policymaking across ministries.

Strengthening the regulatory environment, the report concludes, is critical for stimulating private investment, encouraging entrepreneurship and bringing more businesses into the formal economy.

“Effective implementation of these reforms — supported by strong institutions and efficient administration — will reduce business costs, support firm expansion and lay the groundwork for a more competitive and inclusive economy,” the report says.

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