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Zimbabwe Zimbabwe

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Zimbabwe – Quick View
ECR score16.87 (Mar 2011)
ECR rank164 (Mar 2011)
Economic
GDP (2010)USD 0.67 billion
GNI per capita PPP (2010)USD 176
FDI inflow (2009)USD 60 million
Inflation (2009)-7.7%
Central bank assets (2010)USD 167 million
Unemployment rate (2010)95%
Government deficit (2010)USD -389 million
Tax revenue (2010)USD 1,279 million
Political
Government typeParliamentary
Recent political crisisNA
Economic freedom score (2011)178th
Freedom of information score (2010)123rd
Corruption perception index (2010)134th
Structural
Birth rate30%
Population balanceUnder 14 – 39.9%
Population balanceOver 60 - Female 6.4%
Life expectancy yearsMale 43.4
Life expectancy yearsFemale 44.3 years
Mortality rate62 per ‘000
Literacy rate93%
Internet access12.2%

[Top] Economic Overview

The Zimbabwean economy is projected to grow and benefit from a stable macroeconomic environment, favourable terms of trade and improved agricultural output. Agriculture output is projected to grow by 18.8% in 2010 compared to 14.9% in 2009. Also the output of tobacco, dairy, horticulture and maize production has expanded. The manufacturing sector is projected to grow by 4.5%; mining industry is projected to grow by 31%.

(Source: sadcbankers.org, page: 1)         

The country imports agricultural products (tobacco etc.), minerals (chrome, niobium, tantalum and barium), as well as asbestos and wood, etc.

(Source: laowee.com)

The country’s agriculture sector contributes 19% of GDP and industry sector contributes 24% of GDP.

(Source: state.gov)

GDP at current prices

 

Zimbabwe GDP

(Source: IMF)

GDP at current prices is estimated at ZWD 5.57 billion in 201 compared with ZWD 4.62 billion in 2009 reflecting an increase of 20.56% over a year.

 

GDP growth rate

 

 Zimbabwe GDP growth

(Source: IMF)

The GDP growth rate in 2010 is estimated at 5.87% compared to 5.69% in 2009.

Gross national income (GNI)

 

Zimbabwe GNI per capita

(Source: UNDP, page: 4)

The gross national income (GNI) per capita at PPP was USD 176 in 2010 compared to USD 189 in 2005.

 

Income tax rate

Income (ZWD)

Tax Rate (%)

0 to 1,980

0

1,981 to 6,000

20

6,001 to 12,000

25

12,001 to 18,000

30

Above 18,001

35

(Source: taxrates.cc)

The income tax rates in Zimbabwe range from 20% to 35%.

Corporate tax rate

The corporate tax rate in Zimbabwe is 25%.

(Source: taxrates.cc)

Inflation rate

The inflation rate in Zimbabwe crossed the 100% mark in November 2001 and has since continued to increase. At the end of the year 2007, the inflation rate was recorded at 66,212% and at the end of July 2008 was 231,150,888%. The inflation rate then declined and was recorded at -7.7% at the end of 2009. The IMF estimates the inflation rate in 2010 at 9.07%.

(Source:rbz.co.zw, IMF)

FDI inflow

Foreign direct investment (FDI) inflow for the year 2009 was USD 60 million as compared to USD 52 million in 2008.

 

 

Zimbabwe FDI inflow

(Source: UNCTAD)

Central bank assets

The projected value of the central bank assets for the year 2010 is USD 167 million as compared to an estimated USD -479 million in 2009.

 

Zimbabwe Central bank assets

(Source: IMF, page: 22)

 

 

[Top] Financial Indicators & Government Financial

Consumer price index

 

The consumer price index (CPI) in has risen since the index base year (2001). The consumer price index in 2002 increased to 233.2 and soon climbed above 1,000. CPI in 2005, 2006 and 2007 reached 6,486.4; 184,100 and 12,562,581 respectively. CPI at end July 2008 was 35,500,566,912,457. Since the start of 2009, CPI decreased and was recorded 92.3 at the end of the year. The index figure in January 2011 was 96.1.

(Source: rbz.co.zw)

Interest rates on demand deposits

The average interest rate on demand deposits was 1.2% in 2010.

(Source: reserve bank, page: 1)

Broad money supply (currency in circulation)

 

 

 

Zimbabwe Broad money supply

(Source: IMF, page: 21)

The projected broad money supply in 2010 was USD 1,511 million, an increase of 18.42% from an estimated value of USD 1,276 million in 2009.

Government expenditure

Total expenditure for the year 2010 is estimated at ZWD 2.01 billion compared to ZWD 1.1 billion in 2009.

 

Zimbabwe Total expenditure

(Source: IMF)

External debt

External debt in 2010 i projected to reach USD 7,662 million, approximately 149% of GDP. The total external debt in the years 2009 and 2008 was estimated to be USD 7,145 million and USD 5,794 million.

(Source: IMF, page: 21)

Official exchange rate

Zimbabwe's unprecedented inflation rate made the Zimbabwe dollar worthless. The Zimbabwe dollar has been replaced by the US dollar and to a certain extent the South African Rand.

Year

Official Exchange Rate (ZWD/USD)

2008

6,715,420,000

2007

9,675.78

2006

164.36

(Source: AFDB)

 

Government finances

Fiscal balance

The 2010 fiscal deficit is an estimated ZWD 108 million compared to ZWD 126 million in 2009.

 

 

Zimbabwe Fiscal balance

(Source: IMF)

Total revenue

 

Zimbabwe Total revenue

Total government revenue in 2010 was estimated at ZWD 1.9 billion compared to ZWD 0.98 billion in 2009.

Tax revenue

The tax revenue for 2010 is projected at USD 1,279 million. (Source: IMF, page: 23)

Total grants

Grants (USD million)

Grants

2010 (p)

2009 (e)

Budget grants

1

41

Off-budget grants

565

351

 

(Source: IMF, page: 23)

The projected budget grants for the year 2010 were USD 1 million compared to estimated value of USD 41 million in 2009.  The projected off-budget grants 2010 were USD 565 million compared to USD 351 million in 2009.

Current account balance

 

Zimbabwe Current account balance

 

 

 

 

 

 

 

 

(Source: IMF, page: 22)

Zimbabwe registered a current account deficit in 2009 and 2010. The projected current account deficit in 2010 was USD 1,183 million  compared to an estimated USD 1,323 million in 2009.

Balance of payments

Balance of Payments (USD million)

 

2010 (p)

2009 (e)

2008 (e)

Current account

-1,183

-1,323

-945

Capital account

459

1,146

134

Errors and omissions

-

206

187

Overall balance

-725

29

-624

(Source: IMF, page: 22)

 

[Top] Labour Force and Employment Overview

Labour force

The total labour force in Zimbabwe in 2009 was 5,028,052 people as compared to 4,938,102.10 in 2008.

(Source: worldbank.org)

Labour force participation rate

The labour force participation rate in 2009 was 67%. The labour force participation rate for 74% for males and 60% for females.

(Source: worldbank.org, worldbank.org, worldbank.org)

Unemployment rate

The unemployment rate was 95% in 2009.

(Source: heritage.org)

Minimum wage

The minimum wage for a 19-year old worker or an apprentice is about USD 90 per month.

(Source: doingbusiness.org)

Level of unionisation

The major trade unions in Zimbabwe include:

  • Zimbabwe Congress of Trade Unions (ZCTU)
  • Zimbabwe Federation of Trade Unions (ZFTU)

 

(Source: ituc-csi.org)

 

 

[Top] Political Stability

Government Stability

Zimbabwe has a parliamentary system of government. The President is the head of state and also the head of government. The Prime Minister is the co-head of the government.

The parliament has legislative powers. The parliament is bicameral and is comprised of House of Assembly and the Senate. The House of Assembly has a statutory requirement of 214 members, of whom 210 are directly elected and four are ex-officio members. The Senate is comprised of 100 members, of whom 60 are directly elected, five are appointed by the president and the remaining 35 include 10 provincial governors; the President and Deputy President of Council of Chiefs; 16 traditional chiefs; and 7 additional members.

Some of the political parties in Zimbabwe are Zimbabwe African National Union-Patriotic Front (ZANU-PF); Movement for Democratic Change-Tsvangirai (MDC-T); Movement for Democratic Change-Mutambara (MDC-M); Zimbabwe African People’s Union (ZAPU).

(Source: state.gov, IPU)

The last election presidential was held on June 27th, 2008.

 (Source: electionguide.com)

Regulatory environment

 

Zimbabwe Economic Freedom Indices

(Source: heritage.org)

In the 2011 Economic Freedom Index Zimbabwe's score was 22.1, leaving the economy 178th in the global table. The country is ranked last out of 46 countries in Sub-Saharan Africa and is the second least free country in the 2011 Index.

 

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Zimbabwe is ranked 134th with a score of 2.4 which indicates that the corruption levels in public departments is fairly high.

(Source: transparency.org)

Freedom of information

In 2010, Zimbabwe ranked 123rd on the Press Freedom Index with a score of 39.50.

The only TV and radio stations in the country are operated by the Zimbabwe Broadcasting Corporation (ZBC).

(Source: rsf.org, BBC)

Newspapers

Major newspapers in Zimbabwe include -

  • The Herald
  • The Chronicle
  • NewsDay
  • The Financial Gazette
  • The Standard
  • Zimbabwe Independent
  • The Zimbabwean

(Source: BBC)

Judicial system

The Ministry of Justice supervises the legal system in the country. The judicial system includes a Supreme Court, High Court and  magistrates' courts.

The Supreme Court is the highest judicial body. The High Court includes general and appellate divisions. There are regional magistrate's courts with jurisdiction in civil cases and magistrate's courts with jurisdiction in both civil and criminal cases.

(Source: Ministry of Justice)

 

[Top] Demographic Overview

Population

The population of Zimbabwe was 12.6 million in 2010 compared to 11.73 million in 2009.

(Source: undp.org, page: 196, IMF)

51.7% of the total population in mid-year 2009 were female.

 

Zimbabwe Population by gender

 

Gender balance

In 2010 the gender ratio was 101 males per 100 females.

(Source: undp.org, page: 196)

Population age structure

In 2009, 39.9% of the population was in the age group of 0-14 years. The population above 60 years included 6.4% women and 5.1% men in the same period.

(Source: data.un.org)

Median age

The median age of the population increased from 16.8 years in 1990 to 19 years in 2010, primarily due to increasing life expectancy.

(Source: undp.org, page: 196)

Life expectancy

In Zimbabwe, life expectancy at birth for the year 2010 was registered at 47 years. In the period 2005-2010, the life expectancy at birth for males and females was 43.4 and 44.3, respectively.

(Source: undp.org, data.un.org)

Mortality rate

The mortality rate of infants was recorded at 62 per 1,000 live births during 2008.

(Source: undp.org, page: 209)

Death rate and birth rate

The crude death rate was 15% in 2009. The crude birth rate was 30% in 2009.

(Source: unicef.org)

 

Migration and urbanisation

The international migrant stock in mid-2010 included 372,300 individuals, which accounted for only 2.9% of the total population.

About 38.3% of the country’s population lived in urban areas in the year 2010. In the period 2005-2010, the urban and rural population grew at an annual average rate of 2.2% and 0.2%, respectively.

(Source: undp.org, page: 196, data.un.org)

Racial/ethnic environment

Ethnic groups in Zimbabwe include Shona, Ndebele, other African, white, mixed and Asian. Religions followed include Christianity, offshoot Christian sects, Islam and animist.

(Source: state.gov)

Human development index

Zimbabwe is ranked 169th on the Human Development Index (HDI) 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: undp.org)

[Top] Soft Infrastructure

Literacy rate

The adult literacy rate was estimated at 92.6% in 2010.

(Source: UNDP)

Education

Education in the country is neither compulsory nor free. The education system consists of primary education, secondary education and adult & non-formal Education.

The student teacher ratio at the primary level is 39:1. The combined gross enrolment ratio for both sexes is 54.4%. The expenditure on education is about 4.6% of GDP.

(Source: Ministry of Education, UNDP, estandardsforum.org)

Health care

The Ministry of Health and Child Welfare is responsible for the health care sector in Zimbabwe. Zimbabwe’s health system consists of four levels of health care:

Primary: Primary level includes health centres and community health workers. The Rural Health Centres (RHC) provide basic health care including preventive, curative and rehabilitative care.

Secondary: This includes district hospitals (secondary care facilities). There are hospitals in each district, serving a population of about 140,000 individuals. The district hospitals provide services such as referrals and support clinics and RHC in the district.

Tertiary and Quaternary: This includes hospitals at the provincial level and central hospitals. Central hospitals are located in Bulawayo, Chitungwiza and Harare.

In terms of health care resources, the country has about 20 physicians; 70 nurses and midwives; and 300 hospital beds per 100,000 individuals. About 39% of the population is undernourished.

Total health expenditure in 2007 was 4.1% of GDP.

 

(Source: Ministry of Health, estandardsforum.org, UNDP)

[Top] Hard Infrastructure

Public Transit

Public transport in Zimbabwe is mainly by road.

Roadways

There are roughly 97,267km of road in Zimbabwe, of which 19% are paved.

(Source: estandardsforum.org)

Railways

The rail network in the country is about 3,077 km. (Source: estandardsforum.org)

Ports

Major ports in Zimbabwe are Binga, Kariba, Chalala and Lake Kariba.

(Source: ports.com)

Airports

Town

Airport name

Runway Length (ft)

Binga

Binga

3,500

Bulawayo

Bulawayo

8,400

Bulawayo

Induna

3,600

Centenary

Centenary

3,500

Chiredzi

Buffalo Range

5,100

Gaths Mine

Gaths Mine

3,500

Gweru

Thornhill AB

8,600

Harare

Harare Charles Prince

3,900

Harare

Harare Intl

15,500

Hwange

Hwange National Park

15,000

Hwange

Hwange Town

5,000

Kariba

Kariba

5,400

Kwekwe

Kwekwe

3,200

Marondera

Marondera

3,400

Masvingo

Masvingo

5,600

Mhangura

Mhangura

4,700

Mutare

Grand Reef

4,100

Mutare

Mutare

3,100

Mutoko

Mutoko

3,600

Victoria Falls

Spray View

2,900

Victoria Falls

Victoria Falls

7,500

Zisco

Zisco

3,200

Zvishavane

Zvishavane

3,900

(Source: aircraft-charter-world)

Telecommunication

 

Zimbabwe Fixed telephone line subscribers

(Source: ITU)

The country had 385,116 fixed telephone line subscribers in 2009 as compared to 348,000 in 2008. The number of fixed line subscribers in 2009 was 3.08 per 100 inhabitants as compared to 2.79 per 100 inhabitants.

Zimbabwe Mobile cellular subscribers

 

(Source: ITU)

There were 2,991,000 mobile cellular subscriptions in 2009, an increase of 80.76% over the previous year. The number of mobile subscribers in 2009 was 24 per 100 individuals.

As of June 2010, 12.2% of the population or 1,422,000 individuals used internet services.

(Source: internetworldstats.com)

 

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