World Bank Approves $2025-2026 Strategy to Support Zimbabwe’s Economic Growth, Social Resilience, and Climate Adaptation

New Country Engagement Note Aligns with Zimbabwe’s Vision 2030, Aiming to Boost Economic Governance, Private Sector Growth, and Social Protection.

The World Bank Group’s Board of Executive Directors has approved a new Country Engagement Note (CEN) for Zimbabwe, covering the period from 2025 to 2026. The CEN focuses on supporting Zimbabwe’s immediate development priorities and is closely aligned with the country’s Vision 2030 and National Development Strategy 2021-2025 goals. The strategy aims to contribute to the World Bank’s global mission of eradicating extreme poverty and promoting shared prosperity.

The new CEN is built around two main pillars: -

Pillar 1 focuses on reducing macroeconomic distortions, enhancing fiscal policies, and improving economic governance to create a more conducive environment for private sector-led growth.

Pillar 2 emphasizes social resilience, including boosting pro-poor services, empowering women, and delivering efficient support to vulnerable households. It also addresses climate resilience and supports the transition to renewable energy.

Focus on Economic Reforms and Private Sector Growth

Zimbabwe’s economic potential is rooted in its well-educated workforce, abundant natural resources, and strategic location within Southern Africa. The CEN seeks to build on these strengths, addressing long-standing economic distortions and improving the business regulatory environment to attract private investment.

According to Nathan Belete, World Bank Country Director for Zimbabwe, "Sustained, inclusive, and resilient growth requires building on recent reforms in economic governance and policy. We are committed to helping Zimbabwe move toward a more prosperous economy that benefits both its citizens and the wider region."

Key to achieving this will be reinforcing the competitiveness of priority sectors such as agriculture, mining, and manufacturing, alongside improving infrastructure, particularly the reliability of electricity supply. A stable macroeconomic environment combined with better access to energy is expected to create jobs and boost productivity.

“Private sector development is a key driver of economic growth, and our focus will be on creating the conditions for investment, especially in critical sectors that can drive job creation,” said Cláudia Conceição, IFC Regional Director for Southern Africa. The CEN highlights the importance of improved energy access, which will help raise productivity across sectors and attract more private sector investment.

Supporting Vulnerable Populations and Building Social Resilience

To build resilience among Zimbabwe’s most vulnerable populations, the CEN will focus on strengthening the government’s social protection systems. The goal is to ensure more effective and targeted assistance during crises, such as the current drought affecting much of the country.

The strategy will also improve the delivery of essential services, particularly in healthcare, with an emphasis on maternal and reproductive health services. Efforts to empower women and enhance educational services will play a significant role in improving overall social outcomes.

Climate Resilience and Energy Transition

In addressing climate challenges, the CEN supports Zimbabwe’s transition to renewable energy. It aims to promote sustainable energy practices by encouraging investments in renewable sources and improving landscape management. Enhanced disaster preparedness is also a focus, helping to mitigate the impact of environmental shocks, such as floods and droughts.

The CEN's environmental initiatives are designed to improve Zimbabwe’s resilience to climate change while contributing to broader global climate goals. Renewable energy projects will complement efforts to stabilize electricity access, especially for rural communities.

Consultation and Collaboration

The new strategy reflects extensive consultations with stakeholders, including the Zimbabwean government, civil society, and the private sector. The plan was informed by two years of analytical work conducted by the World Bank Group, providing a comprehensive understanding of Zimbabwe’s needs and opportunities.

The *2025-2026 Country Engagement Note* demonstrates the World Bank Group’s continued commitment to Zimbabwe’s development priorities, with a focus on fostering inclusive economic growth, protecting vulnerable communities, and advancing the country’s climate resilience.