Country Private Sector Diagnostic

Creating Markets in Zimbabwe

February 29, 2024

Mobilizing the private sector in support of economic transformation in Zimbabwe

Download: Executive Summary

The Country Private Sector Diagnostics (CPSD) for Zimbabwe identifies key sectors with significant potential to create jobs and drive economic growth. Regardless of the difficult macroeconomic environment, the private sector in Zimbabwe has demonstrated considerable resilience and strong entrepreneurial skills. As a result, Zimbabwe has significant short-term growth potential.

This CPSD identifies opportunities for active private sector participation in agribusiness — particularly cotton, horticulture, and livestock — mining, and tourism. The study also identifies major constraints that undermine private sector development. Macroeconomic instability, lack of access to finance, and a weak business environment represent the major challenges, along with energy, transport, and digital infrastructure gaps. While currently a bottleneck for private sector development, these infrastructure gaps also offer important investment opportunities for the private sector.

The CPSD articulates several sector-specific policy recommendations for agribusiness, mining, and tourism that will help Zimbabwe unlock its full potential. Building on recent government efforts, the CPSD recommends deepening macroeconomic reforms, including addressing exchange rate distortions and revising export surrender requirements, as well as addressing the costly regulatory framework to start and operate a business.