Zimbabwe’s removal from the World Bank’s list of fragile and conflict-affected situations has highlighted the economic and institutional progress made by the country, but significant challenges remain, particularly its longstanding debt arrears.
The World Bank removed Zimbabwe from the list effective July 1, 2026, a move that could strengthen the country’s international standing and improve its prospects for accessing finance and attracting investment.
The development comes as the World Bank says Zimbabwe has an opportunity to turn recent economic stability into stronger growth and more employment opportunities.
A new Zimbabwe Growth and Jobs Report, released by the World Bank Group on September 4, says the country’s economy grew by an average of almost 6 percent between 2021 and 2025, while local-currency inflation dropped to single digits in early 2026.
According to the report, Zimbabwe could create up to 230,000 new jobs by 2040 if it accelerates key structural reforms. The reforms could also raise real GDP by an additional 10.7 percent by 2030 and 26.9 percent by 2040 compared with the baseline projections.
The World Bank described the current period as an important opportunity for Zimbabwe to build on its economic stabilisation.
“The window of opportunity created by recent stabilization is open, but decisive and coordinated execution over multiple years will be essential,” said World Bank Senior Economist Victor Steenbergen.
The International Monetary Fund estimates that Zimbabwe’s external arrears to official creditors stood at about US$7,7 billion at the end of 2025. The IMF also estimates total public and publicly guaranteed debt at US$22,8 billion, with external debt accounting for US$15,2 billion.
The World Bank’s latest report also identifies debt resolution and arrears clearance as one of the key areas requiring attention if Zimbabwe is to restore access to concessional external financing.
Zimbabwe is pursuing a gradual transition towards a mono-currency system anchored by the ZiG, although the Reserve Bank of Zimbabwe has said the transition will be guided by economic conditions rather than a fixed deadline.
However, the transition is expected to depend on economic conditions, including price stability, adequate foreign-currency reserves and confidence in the local currency.
The continued dominance of the US dollar means the shift will be a major test for Zimbabwe’s monetary authorities. The success of the process will largely depend on whether the ZiG can maintain stability and gain greater public and business confidence.
For Zimbabwe, the World Bank’s decision to remove it from the fragile-state classification therefore represents an important milestone but the country still faces the difficult task of converting economic stabilisation into jobs, investment, debt resolution and sustained growth.
