Zimbabwe is a lower middle-income country with strong human and natural capital and significant growth potential and yet faces entrenched governance and institutional challenges, macroeconomic volatility, and high poverty. The past two decades have seen significant macroeconomic volatility and political upheaval that has underpinned brain drain, low growth and high informality, as well as increasing poverty, and resulted in one of the highest levels of inequality in the region. The country is also highly exposed to climate change and experiencing more frequent climate-related shocks, exacerbating existing vulnerability and food insecurity. However, building on its highly educated workforce, abundant natural resources, and recent advances in economic policy, together with key structural and institutional reforms, Zimbabwe could achieve steady and rapid growth and move towards an upper middle-income country status, which the Government of Zimbabwe (GoZ) has targeted for 2030. This FY25-26 Country Engagement Note (CEN) strategically builds on positive reform momentum while helping tackle short-term needs. New reform momentum presents a compelling case for the WBG and other development partners to step up engagement with the country and support its development ambitions. The CEN therefore supports short-term macroeconomic reforms while paving the way for future re-engagement to support medium-term development challenges, through both TA and Trust Fund financing.
Authors
- Board Meeting Date
- 2024-10-07T00:00:00Z
- Disclosure Date
- 2024/10/09
- Disclosure Status
- Disclosed
- Doc Name
- Zimbabwe - Country Engagement Note for the Period FY25-FY26�
- Pages
- 27
- Product Line
- Country Engagement Products
- Published in
- United States of America
- Rel Proj ID
- ZW-Country Engagement Note Of Zimbabwe -- P500090
- Unit Owning
- WB Off.: Harare, Zimbabwe (AEMZW)
- Version Type
- Final
- Volume No
- 1
Table of Contents
- Document of 1
- The World Bank Group 1
- FOR OFFICIAL USE ONLY 1
- INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1
- INTERNATIONAL DEVELOPMENT ASSOCIATION 1
- INTERNATIONAL FINANCE CORPORATION 1
- MULTILATERAL INVESTMENT GUARANTEE AGENCY 1
- COUNTRY ENGAGEMENT NOTE 1
- FOR 1
- THE REPUBLIC OF ZIMBABWE 1
- FOR THE PERIOD FY25-FY26 1
- September 10 2024 1
- Country Department AECE1 Eastern and Southern Africa Region The International Finance Corporation Eastern and Southern Africa The Multilateral Investment Guarantee Agency 1
- The date of the last Interim Strategy Note was March 6 2013 2
- CURRENCY EQUIVALENTS 2
- Exchange Rate Effective September 9 2024 2
- Currency Unit Zimbabwe Gold ZWG 2
- 13.9236 ZWG US1 2
- FISCAL YEAR 2
- July 1 June 30 2
- ABBREVIATIONS AND ACRONYMS 2
- FY25-FY26 COUNTRY ENGAGEMENT NOTE FOR 3
- THE REPUBLIC OF ZIMBABWE 3
- FY25-FY26 COUNTRY ENGAGEMENT NOTE FOR THE REPUBLIC OF ZIMBABWE 4
- Pillar 1 Remaining engaged during conflict and crisis situations Pillar 2 Helping countries transition out of fragility 12
- Pillar 1. Supporting macroeconomic stability and inclusive growth 13
- Aligned with NDS-1 Objectives Strengthen macroeconomic stability Promote good governance. 13
- Aligned with NDS-1 Objectives Achieve and sustain inclusive and equitable real GDP growth 13
- Promote new enterprise development employment and job creation. 13
- Pillar 2. Building resilience 14
- Aligned with NDS-1 Objectives Strengthen social infrastructure and social safety nets gender 14
- Aligned with NDS-1 Objectives Ensure sustainable environmental protection natural resource 15
- Annex 1 CEN Results Matrix 20
- Annex 2. Advisory Services and Analytics in the CEN period 22
