Zimbabwe’s economic challenges can have a negative effect on growth in the Southern African region.
According to an article by African Confidential, challenges in Zimbabwe are also holding back economic growth in Southern Africa.
“Slow growth in Angola and South Africa, as well as the rumbling economic crises in Zambia and Zimbabwe, are holding back the Southern region,” the article reads.
The economic growth in the Southern African region is expected to be just above 2% according to the Africa Development Bank (AfDB).
Zimbabwe’s economic challenges are testifying with civil unrests that have resulted in the death of at least 12 people on the streets.
The unrests pose security risks for the country and this may also scare away potential investors for the country that greatly needs foreign currency.
“With Angola and South Africa set on policy reforms, the crisis in Zimbabwe’s political economy will be the region’s most pressing issue,” Africa Confidential says.
“Despite South Africa’s good offices, it will offer little financial support to Harare, but it will encourage regional institutions such as the AfDB and the Cairo-based Afreximbank to step up backing for President Emmerson Mnangagwa’s government.”
Although Southern African countries are experiencing challenges, policy changes in South Africa may help grow the region.
“A post-election economic revamp could lift South Africa’s economy with beneficial effects for neighbouring states,” African Confidential says.