Zimbabwe’s Economic Outlook Diminishes as Drought Impacts Crop Yields, Says Finance Minister

Zimbabwe’s finance minister, Mthuli Ncube, has revised the country’s economic growth forecast downward due to the severe drought in southern Africa, leading to extensive crop failure. Zimbabwe is one of the worst-hit nations in the region, alongside Zambia and Malawi, both of which have declared disaster states.

The International Monetary Fund also anticipates Zimbabwe’s growth to decrease to 2%, a decline from last year’s 5.3%. Ncube, however, mentioned a projected growth recovery above 5% by 2025. The Zimbabwean government has predicted a 72% decrease in staple maize production for the 2023/24 season.

The drought has significantly impacted agricultural output, necessitating the importation of 1.4 million metric tonnes of grain. To alleviate hunger, Zimbabwe secured approximately $32 million in drought insurance from an African Union agency and has requested food aid from international donors. Ncube is scheduled to present the mid-term budget review later this month.