A new World Bank report, Zimbabwe Economic Update 2025, released under the theme “Fostering a Business-Enabling Regulatory Environment for Private Sector Growth,” says sustaining Zimbabwe’s recent growth momentum will require deepening reforms and addressing long-standing structural constraints that continue to undermine competitiveness.
Government is already rolling out wide-ranging measures under the Presidential Ease of Doing Business Initiative, a flagship programme aimed at improving the business environment, stimulating investment and expanding private sector-led growth.
The World Bank forecasts continued economic resilience saying “Growth is anticipated to remain elevated at 5 percent in 2026, due to robust growth in agriculture, industry and services.”
Further, the report notes 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 support durable macroeconomic stability. As a result, inflation is expected to moderate to single digits in 2026 and decrease further to 5 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 Presidential 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.”
Government is further advancing domestically driven reforms in the transport and retail sectors, while additional reviews are underway in energy, manufacturing and several agriculture subsectors 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 licenses, fees, and permits across twelve priority sectors and launched the ZIDA eRegulations 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.”-herald
