Zimbabwe faces high economic costs due to climate change, with potential losses reaching 5% of GDP by 2050 if no action is taken.
New reports, however, from the World Bank offer a hopeful outlook, outlining a path for the country to build a climate-resilient economy.
The World Bank’s Country Climate and Development Report (CCDR) and Country Private Sector Diagnostic Report (CPSD) highlight Zimbabwe’s abundant natural resources as a key driver for growth.
The reports emphasise the importance of leveraging the private sector to create a climate-smart economy, with opportunities in agribusiness, tourism, and green mining.
“Zimbabwe is at a crossroads,” says Victoria Kwakwa, World Bank Vice President for Eastern and Southern Africa.
“The path that it takes now will have consequences for both its development and climate action, requiring further adaptation measures to limit climate change impacts on GDP growth alongside tough and robust governance systems of the mining sector.”
The CCDR identifies “no-regrets” climate actions that are cost-effective and can help Zimbabwe achieve upper-middle-income status. These actions include greening the mining industry, supporting conservation agriculture, and investing in human capital.
The reports acknowledge Zimbabwe’s economic challenges, including macroeconomic instability and limited investment. However, they also point to the resilience of the private sector, particularly in agriculture, agribusiness, tourism, and mining.
“This CPSD for Zimbabwe gives us valuable insights into the challenges faced by Zimbabwe’s private sector,” says IFC Acting Country Manager for Zimbabwe, Vasco Nunes.
“By leveraging the recommendations in the report, the government can boost investment, and unlock the latent potential in sectors ranging from agriculture to tourism and mining.”
The CCDR and CPSD are the first of their kind in Zimbabwe and aim to assist the country in achieving its development goals in a changing climate. The reports offer a roadmap for robust and climate-resilient economic growth.
