World Bank urges Zimbabwe to leverage economic stability for job growth

A new World Bank report indicates that Zimbabwe has achieved a degree of economic stability, noting that local-currency inflation fell to single digits in early 2026 for the first time since 1997. The economy grew by over 8% in 2025, supported by a strong agricultural season and improved fiscal discipline.

However, the World Bank warns that Zimbabwe must translate this stability into increased investment, productivity, and the creation of formal jobs, as growth has not yet led to widespread improvements in household incomes.

Regarding monetary policy, the lender cautioned against rushing the transition to a mono-currency system. While Zimbabwe aims to phase out the US dollar by 2030 in favor of its bullion-backed ZiG, the World Bank warned that premature de-dollarization could trigger capital flight and widen parallel market premiums. The report emphasizes that the pace and sequencing of this transition are critical to maintaining stabilization gains.