Recent reports released by the World Bank shed light on Zimbabwe’s potential for growth, expressing the importance of leveraging the country’s abundant natural resources, both mineral and renewable, to drive economic development.
The Country Climate and Development Report (CCDR) and the Country Private Sector Diagnostic Report (CPSD) highlight opportunities for Zimbabwe to build a climate-smart resilient economy, particularly by harnessing the power of the private sector.
The CCDR underscores Zimbabwe’s richness in mineral and renewable natural capital, pointing to it as a significant asset for the country’s growth trajectory. However, it also reveals that the existing public sector resources to tackle climate change challenges are limited due to inadequate access to development finance and weak domestic revenue mobilization.
This situation, according to the CCDR, exacerbates macroeconomic constraints, leading to increased land degradation, higher emissions, and reduced climate resilience. Victoria Kwakwa, the World Bank Vice President for Eastern and Southern Africa, said the country is at a crossroads and stressed that the decisions made now will significantly impact both the country’s development.
“Zimbabwe is at a crossroads, and the path that it takes now will have consequences for both its development and climate action, requiring further adaptation measures to limit climate change impacts on GDP growth alongside tough and robust governance systems of the mining sector,” said Kwakwa. On the private sector front, the CPSD provides valuable insights into the challenges faced by Zimbabwe’s private sector.
According to Vasco Nunes, the Acting Country Manager for Zimbabwe at the International Finance Corporation (IFC), leveraging the recommendations outlined in the CPSD could unlock significant investment opportunities across various sectors.
“This CPSD for Zimbabwe gives us valuable insights into the challenges faced by Zimbabwe’s private sector. By leveraging the recommendations in the report, the government can boost investment, and unlock the latent potential in sectors ranging from agriculture to tourism and mining,” said Nunes.
The World Bank Group’s Country Climate and Development Reports (CCDRs) represent a vital step in integrating climate change and development considerations into core diagnostic reports. These reports provide a comprehensive framework for understanding the intersection of climate action and economic growth, offering valuable guidance for policymakers and stakeholders
