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(Ecofin Agency) – The positive performance of the agricultural sector and the increase in electricity generation capacity is expected to boost the growth of the Zimbabwean economy this year.
The Zimbabwean government announced, Friday, it is expecting a 6% growth this year, up from the 3.8% announced previously. Its renewed forecast is partially based on the strong performance of the agriculture sector and a decline in power cuts.
“We are saying 3.8% growth is an underestimation. The growth should be higher than that and close to 6%,” Finance Minister Mthuli Ncube (photo) said during an online briefing.
“What we mainly did this week was to recognize the strong recovery in the agricultural sector where we have seen 54% growth, at least in the grains sub-sector. We are seeing a 35% growth in the non-food sector,” he added.
In a statement issued in mid-April, the Zimbabwean government said it expected the maize crop to reach 2.3 million tons this year, a 58 percent increase over the previous season.
The Tobacco Industry and Marketing Board (TIMB) announced, on March 8, that national tobacco production is expected to increase by 8.5% in 2023 to 230 million kg, thanks to good weather conditions and an increase in planted area.
The Zimbabwean Finance Minister also said that increased production at the Hwange coal-fired power station and the Kariba hydroelectric power station has helped improve the availability of electricity and reduce load shedding.
Zimbabwe is facing a severe economic crisis since the early 2000s after former President Robert Mugabe’s land reform broke up a key sector of the country’s economy and caused it to stop repaying its debt to international donors.
Robert Mugabe, who was forced to resign in November 2017 after 37 years of undivided rule, has left a painful legacy for his successor Emmerson Mnangagwa.
Still deprived of international donor support, Harare is struggling to secure new lines of credit and attract the foreign investment needed to revive its economy.
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