Natalie Nyathi
Zimbabwe’s economy has shown resilience with a solid expansion in 2024, according to the Zimbabwe National Statistics Agency. The Gross Domestic Product rose significantly from the previous year, reflecting positive growth. This increase happened alongside major changes in different sectors and the ongoing challenge of climate change, especially the impact of the recent drought.
The growth was mainly driven by the manufacturing and mining sectors, which helped balance out declines in agriculture. Manufacturing contributed a strong share to the GDP, showing a slight increase from the year before. The mining sector experienced the highest growth, largely due to global demand for minerals like gold. Gold exports reached around US$2.5 billion in 2024, with significant contributions also coming from platinum and diamond production, as well as emerging lithium exports.
However, the severe drought had a major negative effect on key sectors. The agriculture, forestry, and fishing sector saw a significant decline, reducing its share of the GDP. The drought, the worst in decades, caused widespread crop failures and food insecurity, particularly affecting maize production. The accommodation and food services sector also faced difficulties, contracting despite a small increase in its overall GDP share.
ZimStat explained that the GDP figures for 2024 were based on current currency conditions. The introduction of the new currency, Zimbabwe Gold, aimed to address issues with prices and exchange rates. The income approach to measuring GDP showed that employee compensation was the largest component, followed by gross operating surplus and mixed income.
Despite the overall growth, economists pointed out several challenges. The decline in agriculture due to the drought highlights the country’s vulnerability to climate change. This drought not only reduced agricultural output but also led to power shortages, which further affected the manufacturing sector. Analysts note that while growth in manufacturing and mining is encouraging, it needs to lead to job creation. The impact of the drought on agriculture, a key source of employment, raises concerns about rural livelihoods and food security, with millions potentially facing hunger.
Looking ahead, Zimbabwe’s economy is expected to grow further, driven by a recovery in agriculture and investments in mining and steel production. However, there are ongoing risks due to economic vulnerabilities and a difficult business environment. High public debt limits access to international financing. To maintain growth, Zimbabwe needs to address its economic challenges, push for reforms, and focus on improving domestic resources and fiscal management.