Zimbabwe is expected to be among the fastest growing economies in Africa this year, with the African Development Bank (AfDB) forecasting 5,3 percent growth.
The strong growth forecast is slightly below the 6 percent predicted by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, but it is still one of the fastest on the continent.
Niger is projected to be the fastest-growing economy in Africa, with an expected growth rate of around 11,1 percent due to its burgeoning oil production sector.
Other African economies expected to lead the growth race this year include Senegal, Rwanda and Ethiopia.
Agriculture is expected to lead Zimbabwe's economic recovery following good rains experienced this season.
Last year, the economy was pegged back by the devastating impact of the El Nino-induced drought, reducing economic growth to 2 percent.
The drought reduced the maize harvest, a key staple in the country, by about 71 percent, according to the World Bank.
Growth is expected to be markedly faster driven by other key sectors such as mining, tourism and infrastructure development.
The AfDB's African Economic Performance Report paints a highly positive outlook for Zimbabwe's economy this year.
"In 2025, economic performance in Zimbabwe will benefit from agricultural recovery, greater electricity generation, and expected stability in commodity prices in mining, with growth projected to rise from an estimated 2,0 percent in 2024 to 5,3 percent in 2025," stated the AfDB.
Agriculture has historically been a pillar of Zimbabwe's economy.
Better access to financing and several Government support initiatives including inputs schemes are also expected to help boost production in the sector.
The mining sector is set to play a crucial role in the rebound, benefiting from stabilised and strong global commodity prices, including for gold, as well as increased investment in exploration and production.
The World Bank forecast growth in transport and distribution, construction, retail and manufacturing, which will contribute to Zimbabwe's overall economic expansion.
Economist Gladys Shumbambiri-Mutsopotsi said while the AfDB's forecast fell short of the Government's 6 percent growth target, its bullish projection reflected an overall positive outlook.
"The AfDB report shows some positive developments related to the overall macroeconomic growth trajectory, and this is coming at the right time when the Government intends to scale up economic growth.
"Of course, there are some challenges here and there, but what is needed is the will to oversee the set targets become a reality for the benefit of the entire nation," she said.
For Zimbabwe to realise its full economic potential, close collaboration between the Government and the private sector will be crucial, economists say.
Zimbabwe National Chamber of Commerce president Mr Tapiwa Karoro emphasised the importance of working for a common purpose among key stakeholders to maintain gains achieved thus far.
"What is needed is stakeholder commitment, where the Government and the private sector work together towards identifying what needs to be done this year.
"While there are positive signs of the economy growing, there are still many grey areas that need to be sorted in terms of consolidating the current gains," he said.
The AfDB's positive growth projection for Zimbabwe follow similar predictions by the International Monetary Fund and the World Bank, which also forecast Zimbabwe's economy to register strong growth this year.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"Zimbabwe's economic outlook is positive, with recovery from the 2019-2020 Covid-19 recession and the 2024 El Nino-related drought," the World Bank said in its recently published Zimbabwe Economic Update report.
According to the report, Zimbabwe's economic recovery will be driven by agriculture, which is expected to grow by nearly 13 percent, anchored by recovery in maize and tobacco production.
The report also noted that Zimbabwe's mining sector continued to exhibit strong growth, bolstered by rising gold prices and new investments that are expected to increase lithium, iron ore and steel production.
"Similarly, the tourism industry is growing rapidly, with increasing numbers of international arrivals and hotels' bed occupancy," the report said.
