World Bank urges Zimbabwe to turn stability into formal Jobs

Zimbabwe stands at a pivotal moment to transform economic stability into formal job creation, according to the new World Bank Group report, The Zimbabwe Growth and Jobs Report. The report highlights that Zimbabwe's economy grew at an average of nearly six percent between 2021 and 2025, while local-currency inflation fell to single digits in early 2026, a first since 1997.

Despite these improvements, the report warns that stability alone is not enough to drive widespread job creation and higher household incomes. The World Bank stresses the need for sustained fiscal and monetary discipline, careful management of de-dollarization, and clearing multilateral debt arrears for Zimbabwe to achieve inclusive growth and sustainable development.

Currently, about 80 percent of Zimbabweans are employed in the informal sector, earning an average of 130 US dollars monthly, and nearly half of the population lives below the international poverty line. The report also points out that labor has shifted from agriculture to lower-paying retail and informal services, limiting the potential for formal manufacturing and high-value services.