Drivers and Implications of the Structural Shift of the Private Sector in Zimbabwe

This paper examines the dynamics within the Zimbabwean economy over the past decade and a half

Abstract

During the first decade of this century, the Zimbabwean economy virtually halved in size, ending in a spiral of hyper-inflation. The policy of dollarization, served to stabilise the economy, and the early years of this decade saw good economic growth. However, this growth has now stalled and the economy is now virtually stagnant: many fear that the situation may yet worsen significantly. This turmoil has had a substantial impact on Zimbabwe’s private sector, with many of the country’s larger companies going out of business. As a result there has been a huge increase in the number of small and medium sized enterprises (SMEs), as those made redundant from bigger companies seek ways of earning a living.

This paper examines the dynamics within the Zimbabwean economy over the past decade and a half, in order to understand 2 issues:

  1. why is it that some companies, despite the significant challenges, have managed to survive, and what might be learned from their experience?

  2. what variables seem most likely to lead to a resurgence in the Zimbabwean economy? What might be done to promote and support that process?

This research was funded by the Department for International Development’s Policy Research Fund

Citation

Davis, P.; Vitoria, B. (2017). Drivers and Implications of the Structural Shift of the Private Sector in Zimbabwe. Department for International Development, London, 60p

Drivers and Implications of the Structural Shift of the Private Sector in Zimbabwe

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