Economist Michael Phiri says Zimbabwe’s economy is showing clear signs of recovery, buoyed by strong performance in agriculture and improved productive infrastructure, with prospects of a good harvest expected to stimulate broader economic growth.
Speaking to Great Dyke News, Phiri said the country is benefiting from a more agro-based economic structure, which performed well last year due to increased investment in infrastructure such as machinery, boreholes and dams.
“We are really buoyant given the rains we are getting,” Phiri said. “Since our economy is agro-based and has performed very well, and given that the infrastructure and machinery are now in place, we expect a good harvest. This will have a significant effect on the rest of the economy.”
He explained that a strong agricultural season typically has wide-ranging downstream benefits, particularly for agro-processing and related industries, which could drive industrialisation and job creation.
Phiri noted that while the economy may still require another three to four years to fully stabilise, the foundations have now been laid for sustained growth. “Where we are now, I think the economy is ready to fly, and that must begin this year,” he said.
However, he cautioned that external risks remain, especially in the mining sector, where international commodity prices and cross-border economic headwinds could affect growth prospects. A sharp decline in global prices for minerals and steel, he warned, could slow the country’s growth trajectory.
Despite these risks, Phiri said opportunities outweigh the challenges, particularly if agriculture continues to anchor economic activity. “Once we have a good harvest, there will be significant downstream effects as we push towards industrialisation. Agro-processing stands to benefit enormously,” he said.
Expressing confidence in the country’s direction, Phiri said both businesses and consumers now recognise their role in driving economic recovery. “The worst is over in terms of the economy. We are very clear that the economy is in our hands. We either make it happen or not,” he said.
He added that this renewed commitment and clarity of purpose could help Zimbabwe move steadily towards its Vision 2030 goal of becoming an upper middle-income economy.
