Advancing Zimbabwe's economic reforms at WEF 2025

Zimbabwe's Finance, Economic Development, and Investment Promotion Minister, Mthuli Ncube, is at the forefront of promoting economic reforms and global partnerships for his country at the World Economic Forum in Davos this year. Ncube, who also serves as the chairman of the committee of Finance Ministers for Africa, sat down for an exclusive interview with CNBC Africa's Fifi Peters to discuss Zimbabwe's economic landscape and the key initiatives being undertaken to drive the nation forward. The discussion touched on crucial topics such as improving the business environment, maintaining a stable currency, addressing debt sustainability, and embracing digitalization as a tool for economic growth and inclusivity. Ncube outlined significant strides in enhancing the ease of doing business in Zimbabwe by establishing the Zimbabwe Investment Development Agency (ZIDA) as a one-stop shop for investors. This initiative aims to streamline licensing procedures and regulatory processes to attract more foreign investments. Additionally, efforts have been made to ease regulations, lower licensing fees, and enhance the overall business environment to foster economic growth. With regards to currency stability, Ncube highlighted the introduction of the Zimbabwe Gold, the Zinc currency, which has provided a level of stability since its inception. He reassured investors that Zimbabwe operates under a multi-currency regime, with the U.S. dollar widely accepted alongside the domestic currency, offering a sense of security for transactions. Despite the reliance on foreign currency, Ncube emphasized the government's commitment to gradually transitioning to a single domestic currency when the time is right. Debt sustainability was a key concern addressed by Ncube, who acknowledged the challenges posed by the country's debt burden on economic performance. While Zimbabwe has managed to contain deficits to less than two percent of GDP in recent years, the high borrowing rates compared to growth rates remain a pressing issue. Ncube stressed the importance of restructuring debts, boosting tax revenues, and advocating for global financial system reforms to support Africa's development. Looking ahead, Ncube expressed concerns about a growing protectionist stance, particularly under a Trump presidency, but remained optimistic about fostering multilateralism through platforms like the G20 to advocate for Africa's interests. He highlighted the importance of technology and digitalization in driving economic progress and emphasized the government's role as an enabler in providing infrastructure and regulatory support for digital initiatives. Ncube's vision for a digitally inclusive economy that harnesses the potential of AI-driven innovations underscores Zimbabwe's commitment to embracing the future. In conclusion, Minister Mthuli Ncube's insights shed light on Zimbabwe's economic trajectory and the proactive measures being taken to propel the nation towards sustainable growth and development.