In this series, we take a look at Africa, country-by-country, and offer a (very) brief glance at the historical events, key industries, and current political situation shaping individual states.
Photo: Victoria Falls, Zambia-Zimbabwe (Diego Delson/ Wiki Commons)
Quick facts
Head of state: President Emmerson Mnangagwa (2017–present)
Capital/ largest city: Harare
Population: 16.0 million (2021)
GDP: USD 28.4 billion (2021)
A (very) brief history
Modern day Zimbabwe traces its roots back to the medieval state of the Kingdom of Zimbabwe, which existed from the 11th to the 15th centuries, and was the center of a thriving trading empire. Founded by the Shona people, it was known for its impressive stone structures, including what is today known as the Hill Complex, formerly known as the Acropolis, and believed to have been the spiritual and religious center of the medieval city. So important was stone in the culture that the word zimbabwe is derived from Shona and means “stone houses.”
The kingdom's economy was based on agriculture, trade, and mining, with gold being a particularly valuable commodity. The onset of the 15th century saw a major decline, due to a combination of factors, including overpopulation, resource depletion, and external pressures from neighboring kingdoms.
In the late 19th century, the British arrived and colonized the area, renaming it Rhodesia in 1898. Under colonialism, Zimbabwe's economy was heavily dependent on agriculture, with white settlers owning most of the land. This led to a period of social and economic inequality, with the majority of the population living in poverty. By the 20th century, a strong nationalist movement, led by figures such as Robert Mugabe and Joshua Nkomo, sought to end colonial rule and establish a democratic government.
Zimbabwe gained independence in 1980, following a protracted guerrilla war led by nationalist forces. Robert Mugabe became Zimbabwe's first prime minister and later president, holding power for 37 years until his removal in 2017.
In the early years of his rule, Mugabe pursued policies aimed at promoting social and economic equality, including land reform and nationalization of key industries. There is a common perception that the country was the “breadbasket of Africa.” Studies show the country’s agricultural contributions to the continent approached 10% at its peak, quite a significant contribution from one African nation.
However, this reputation would not last: The country’s Fast-Track Land Reform Programme in 2001 aimed to redistribute land and remedy skewed ownership that persisted since colonial days. The program involved the seizure of white-owned land and its redistribution to black farmers. Unfortunately, it initiated a period of political instability, economic decline, and hyperinflation in the late 2000s. Mugabe's rule would subsequently be characterized more strongly by corruption, authoritarianism, and human rights abuses.
In 2017, Mugabe was removed from power in a military coup, and Emmerson Mnangagwa became president. The new government has pledged to address some of the challenges facing the country, including corruption, economic reform, and re-engagement with the international community. However, Zimbabwe continues to face significant political and economic challenges as it seeks to rebuild and move forward.
Key industries
Agriculture
As discussed above, agriculture has traditionally been the mainstay of the Zimbabwean economy, with crops such as maize, tobacco, and cotton being the main sources of income for small-scale farmers. Estimates suggest the sector experienced a 30% decline in productivity under Mugabe’s land reform program, and the industry has faced a number of challenges in recent years, including a decline in investment and a shortage of inputs such as seeds and fertilizers.
Mining
Zimbabwe is home to large reserves of minerals, including the second-largest platinum deposit in the world, substantial lithium reserves, in addition to gold, diamonds, and chromium ore (essential for making stainless steel and chrome plating, among other materials).
The mineral sector is poised to play a significant role in the economy as the global transition to electric vehicles and other battery-powered technology has already caused a spike in demand for many of the natural resources in which Zimbabwe is rich. By some estimates, Zimbabwe could meet 20% of the world's demand for lithium in the coming years.
However, the theft of raw goods, the high cost to upgrade technology, and the lack of skilled labor have stymied this industry from reaching its full potential. In spite of this, the sector presently accounts for around 12% of the country’s GDP.
Tourism
Tourism is a growing industry in Zimbabwe, and the country is heavily dependent on it. From beautiful landscapes and wildlife to Victoria Falls, there is no shortage of natural sites for visitors to enjoy.
From 2021 to 2022, the industry’s receipts more than doubled to USD 580 million, and the government has been investing in the sector and promoting tourism as a way to generate foreign exchange and create jobs. In early 2023, the country granted licenses to two foreign air operators, in a bid to increase the country’s connectivity options for cargo and passengers.
Services
Services, including finance, telecommunications, and transportation, are also important to the Zimbabwean economy, and the sector has been growing in recent years (both before Covid-19 and in 2021 onward), driven by increased investment and the growth of the middle class.
Photo: Harare, Zimbabwe in 2016 (Erik Törner/ Flickr)
How politics affects the business environment
The government has been promoting foreign investment in the country and has implemented policies to make it easier for foreign companies to do business in Zimbabwe. These include tax breaks on capital expenditure including new factories, machinery, and improvement. Foreign investors are generally permitted to freely invest in companies and industry, though certain sectors like primary agriculture, transport services, and retail and wholesale trade including distribution restrict foreign ownership to 35%.
In March 2023, Zimbabwe signed on to Afreximbank’s Fund for Export Development in Africa (FEDA), making it the sixth signatory to the establishment agreement. FEDA seeks “to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa.” Though a positive step, what this means for the future of Zimbabwe remains unclear.
Current political and economic situation
In recent years, the government has been working to address some of the challenges facing the country, including poverty, unemployment, and a lack of access to basic services such as electricity and clean water. The government has implemented a number of initiatives to address these challenges, including investment in infrastructure, education, and healthcare. However, basics like water and sanitation remain chronic problems for the nation, and are only exacerbated by the effects of climate change and severe weather.
As discussed above, Zimbabwe’s current President Emmerson Mnangagwa came to power through a coup in 2017 that ended over three decades of former President Robert Mugabe’s rule. A 2019 article noted that Mnangagwa had “systematically curbed the independence of the judiciary, magistracy, prosecution and the country’s various commissions” in a slide into increased authoritarianism. Freedom House currently ranks the country “Not free” with a score of 28/100.
Final note
Though its current economic and political situation is particularly unstable, Zimbabwe retains a diverse economy driven by agriculture, mining, tourism, and services. The removal of Mugabe brought renewed hope to the country, but current President Mnangagwa seems unwilling or unable to move the country in a more prosperous direction.
While the government has been promoting foreign investment and has implemented policies to address the challenges facing the country, including poverty, unemployment, and a lack of access to basic services, growth has remained anemic.
Zimbabwe boasts a number of natural advantages and resources over other landlocked African nations and has a history of relatively recent prosperity. If its leaders and government can continue making incremental progress and disrupt recent decades of stagnation and decline, the country could perhaps once again reclaim its reputation as the breadbasket of Africa.
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