Afreximbank Projects 3.8% Economic Growth for Zimb...

Afreximbank Projects 3.8% Economic Growth for Zimbabwe in 2025

Oscar J Jeke

Zim Now Reporter

The African Export-Import Bank has projected Zimbabwe's economy to grow by 3.8% in 2025, positioning the country among the fastest-growing economies on the continent. This forecast is detailed in the bank's latest African Trade and Economic Outlook report.

According to the report, the anticipated growth is attributed to a combination of favorable agricultural conditions, stable macroeconomic policies, expanding mining operations, and improved export receipts. A strong 2024/2025 rainy season is expected to result in bumper harvests, particularly in maize and tobacco, positively impacting agro-processing industries, food security, and rural incomes. Additionally, the mining sector continues to benefit from rising global demand for critical minerals such as lithium, gold, and platinum, with increased capital investment and the commissioning of new projects providing a solid foundation for sectoral expansion.

“Zimbabwe is expected to post a growth rate of 3.8 percent in 2025, driven by a favourable agricultural season, increased mining output, and stable macroeconomic conditions,” the report stated.

The report also highlights Zimbabwe's growing participation in intra-African trade, ranking the country among the top 25 economies benefiting from cross-border commerce within the continent. This is particularly significant in the context of the African Continental Free Trade Area, where Zimbabwe stands to gain by enhancing industrial capacity and regional supply chain integration.

“Zimbabwe continues to benefit from intra-African trade and is among the top 25 countries driving regional commerce,” it added.

While the Ministry of Finance's initial growth forecast for 2025 stands at 6%, Treasury has indicated a possible revision pending first-quarter performance reviews. The alignment of Afreximbank's projections with those of other international financial institutions, such as the IMF, World Bank, and African Development Bank, further reinforces the positive outlook for Zimbabwe's economy.

In addition to the growth forecast, Zimbabwe is set to benefit from Afreximbank's declared US$300 million dividend payout. As the fifth-largest shareholder with a 5.71% stake, Zimbabwe's share of the dividend is expected to bolster the country's foreign currency reserves and support ongoing economic reforms.