[REVISION HISTORY]

Zimbabwe World Bank fragile states delisting

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-09-05 01:56 UTC → 2026-09-07 11:03 UTC · added ~~removed~~

The World Bank has removed Zimbabwe from its classification of fragile and conflict-affected economies, effective July 1, 2026. This change means the country no longer appears on the Public Fragility, Conflict and Violence List or the Institutional Fragility List for the 2027 fiscal year. Finance Minister Mthuli Ncube described the reclassification as a “direct validation of the country’s ongoing economic turnaround, governance and institutional reforms.” Economic data cited for this shift includes a real GDP growth of 8.3% in 2025 and a decline in annual inflation to 2.9% by August 2026. ~~Additional factors~~ Following this reclassification, a new World Bank report noted by that local-currency inflation fell to single digits in early 2026 for the ~~government include improved~~ first time since 1997. While acknowledging the 8% growth in 2025 supported by fiscal ~~discipline, monetary stability,~~ discipline and agriculture, the lender warned that stability must be translated into increased ~~budget transparency, with Zimbabwe achieving~~ investment, productivity, and formal job creation, as growth has not yet significantly improved household incomes. The report also addressed monetary policy, cautioning against a ~~score of 62~~ rushed transition to a mono-currency system. While Zimbabwe intends to phase out ~~of 100~~ the US dollar by 2030 in favor of its bullion-backed ZiG, the ~~2025 Open Budget Survey.~~ World Bank warned that “premature de-dollarization could trigger capital flight and widen parallel market premiums,” emphasizing that the sequencing of this transition is critical to maintaining stabilization gains.

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