ZIMBABWE’S gross domestic product (GDP) is expected to drop by 3% as the agricultural sector, which the country’s economy relies on, bears the brunt of the adverse effects of the prevailing El Niño-induced drought, it has been revealed.
Poor rainfall during the 2023/24 agricultural season led to poor crop yields with the Grain Marketing Board indicating that the country’s grain reserves are almost exhausted and will not carry the country to June this year.
President Emmerson Mnangagwa has since declared the drought a state of national disaster with government this week announcing that efforts to mobilise food aid had begun.
Speaking at a National Policy-Level Workshop on fostering productive capacities in Zimbabwe for industrialisation, economic diversification and inclusive growth, World Food Programme country director Francesca Erdelmann said the African continent continued to suffer from hunger, post-harvest losses and widespread malnutrition.
“Climate change is also causing agro-ecological shifts, which has affected several breadbaskets in Africa, including Zimbabwe. And this has impacted the continent’s food sovereignty and resilience,” Erdelmann said.
“Real GDP was estimated to have grown by 5,5% in 2023, after a 6,5% growth in 2022, due to an expansion in agriculture, mining and remittance-induced service growth. Growth is expected to decelerate to about 3% in 2024, partly reflecting the impact of a drought on agricultural production and lower commodity prices.”
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Erdelmann also stressed the need to increase digital connectivity and inclusion as internet penetration has been recorded to be 5% lower than Africa’s standards.
“We must increase digital connectivity and inclusion. Internet penetration is very low, just about 35% in Zimbabwe, compared with the Africa average of 40%, which, to be honest, is still also very low.
“Education systems must be transformed, especially given that the youths will constitute over 42% of the population in a few years from now,” she said.
United Nations Conference on Trade and Development productive capacities and sustainable development branch acting head Mussie Delelegn said the government should urgently address the gaps which were impacting on the country’s productive capacities.
Said Delelegn: “Zimbabwean performance in the Southern African Development Community region is the lowest and non-performing. Zimbabwe needs to urgently address the gaps and limitations in productive capacities, broaden the sources of growth, improve the quality and invest in fostering productive capacities.
“The country’s economy is deeply fluctuating as the country depends on imports rather than exports. Transformation is not moving in the right direction or way.”