Economy

Zimbabwean economy is basically driven by the agricultural sector. Due to the agreeable climate conditions and some judicious use of natural resources like the water in the Zambezi River and Lake Kariba, Zimbabwe has been able to make most of its land. The mining industry is also well developed, producing gold and nickel, mainly for export, as well as other minerals including silver, emeralds, lithium, tin, iron ore, manganese, cobalt, coal, diamonds and a number of rare metals. Zimbabwe’s natural resources make it a potential African economic power.

Zimbabwe being a former colonial economy and an export-oriented one, it is heavily dependent on South Africa for trade and valuable foreign exchange. Zimbabwean technocrats continue to believe in export-led economic growth but this is perhaps no longer the solution for the country’s problems. The services and manufacturing sector, strong by African standards, need to be developed further.

Further, the non-resolution of the racial issue – the issue of white land ownership and the recent occupation of white farms by angry black Zimbabweans – has resulted in massive resource-loss in a country dependent on agriculture. This is perhaps the worst period for the Zimbabwean economy in a long time, with galloping inflation and political turmoil.