The Emergence of Zimbabwe's Economy and Its Persistent Obstacles

Abstract

Zimbabwe’s economy has had a tumultuous history since gaining independence in 1980. Initially, the economy was buoyed by favourable foreign investment and a flourishing agricultural sector. However, in the 1990s and 2000s, a combination of hyperinflation, sanctions, and mismanagement led to a collapse of the economy. In recent years, Zimbabwe has made progress in stabilizing its economy and has seen modest growth. Despite this progress, the country still faces numerous persistent obstacles to further economic growth. This paper will explore the emergence of Zimbabwe’s economy since its independence and examine the main obstacles that have impeded further growth. It will discuss the causes of Zimbabwe’s economic collapse in the 1990s and 2000s, and how the government has attempted to address these issues. Additionally, it will look at the impact of external factors such as sanctions and foreign investment on the economy, as well as the role of financial institutions and other organizations in promoting economic development. Finally, it will provide an assessment of whether or not Zimbabwe’s economy is likely to continue to grow in the future and what additional measures may be necessary for it to do so. Through an analysis of Zimbabwe’s economic history and the current challenges it faces, this paper will provide valuable insight into the obstacles that must be overcome for the country to achieve long-term economic growth. It will also identify potential steps that may be taken to ensure the continued success of Zimbabwe’s economy and help to inform future economic policy.