By Desire Tshuma
HARARE — Zimbabwe has been removed from the World Bank’s list of fragile and conflict-affected economies, a development Government says signals growing institutional resilience and progress in the country’s economic transformation.
According to a press statement issued by the Ministry of Finance, Economic Development and Investment Promotion on August 28, the reclassification became effective on July 1, 2026, under the World Bank Group’s revised classification framework for the 2027 fiscal year.
The ministry said the development marked an important milestone in Zimbabwe’s ongoing economic and institutional reforms, as the country seeks to attain the objectives of Vision 2030 and build an empowered and prosperous upper-middle-income society.
The World Bank introduced two separate classifications beginning in July — the Public Fragility, Conflict and Violence List, covering countries where organised political violence affects at least 20 percent of the population, and the Institutional Fragility List, which applies to countries with a Country Policy and Institutional Assessment score below 3.0.
“Zimbabwe is no longer in these two lists and it affirms the country’s economic and social progress,” the ministry said.
The reclassification comes against the backdrop of improvements highlighted by Government in key areas of the economy, including real Gross Domestic Product growth of 8.3 percent in 2025, supported by strong performances in agriculture, mining, manufacturing and services.
Government also pointed to a decline in annual ZiG inflation to 2.9 percent in August 2026, which it said reflected sustained price and exchange-rate stability.
The Treasury further attributed the improved economic outlook to enhanced fiscal and monetary discipline, including measures aimed at containing expenditure, limiting monetary expansion and strengthening the domestic currency. Improvements in public financial management, institutional governance and the broader business environment were also cited as contributing factors.
Zimbabwe’s score in the 2025 Open Budget Survey rose to 62 out of 100, placing the country among the leading performers in Sub-Saharan Africa. The Treasury said the country’s budget transparency score has improved by 39 points since 2017.
The Government believes its removal from the fragility classifications could have far-reaching implications for investor confidence and the country’s international standing.
The ministry said the development could improve international perceptions of Zimbabwe’s institutional and investment risk, strengthen investor confidence and help mobilize long-term domestic and foreign investment. It could also create greater scope for commercial project financing, infrastructure partnerships and co-financing arrangements while promoting deeper trade, investment and development partnerships.
The development is also expected to complement Zimbabwe’s ongoing Arrears Clearance, Debt Relief and Restructuring Process, which Government is pursuing as it seeks to restore the country’s access to international financing.
However, the Government acknowledged that sustaining the gains will require continued reforms.
“Government remains committed to implementing the reforms necessary to consolidate macroeconomic stability, strengthen governance, improve the investment climate and advance the Structured Dialogue Platform on arrears clearance and debt resolution,” the statement said.
Finance Minister Professor Mthuli Ncube said the Government’s broader objective remained the creation of a resilient, competitive and inclusive economy capable of generating jobs, attracting investment, improving public services and raising the quality of life for Zimbabweans.
The World Bank reclassification therefore represents not only a statistical change, but a significant test of whether Zimbabwe can sustain its reform trajectory and translate improved economic indicators into tangible improvements in the lives of ordinary citizens.