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Zimbabwe adjusts is economic growth down to 2% in 2024 as drought affects crop yield.
(The Post News)- Zimbabwe’s financial landscape is undergoing a significant shift as the nation grapples with an unprecedented environmental crisis.
The government has been forced to substantially revise its economic projections for the current year in light of a devastating drought that has gripped Southern Africa.
Mthuli Ncube, the country’s finance minister, revealed a stark adjustment to Zimbabwe’s growth forecast.
The nation now anticipates a mere 2% expansion in 2024, a considerable reduction from earlier predictions.
This modification reflects the harsh realities of an El Niño-induced dry spell that has decimated agricultural yields across the region.
The El Niño phenomenon, characterised by the abnormal warming of Pacific waters, has triggered a cascade of climatological effects, with Southern Africa bearing the brunt of its impact.
Zimbabwe finds itself at the epicentre of this crisis, alongside its neighbours Zambia and Malawi, both of which have officially declared states of disaster.
The International Monetary Fund (IMF) has echoed Zimbabwe’s revised outlook, aligning its projections with the government’s more conservative estimate.
This downward adjustment represents a significant deceleration from the previous year’s economic performance.
Despite the current gloom, Ncube maintains a cautiously optimistic stance regarding prospects.
He anticipates a robust economic rebound in the subsequent year, potentially surpassing the 5% growth mark.
Ncube stated, “We are all downgrading our growth targets for 2024 because of deeper than expected impact on our agriculture, but next year is brighter.”
The drought’s ramifications extend far beyond stunted crop growth.
Zimbabwe now faces the daunting task of securing substantial grain imports to offset domestic shortfalls.
The government has outlined plans to procure 1.4 million metric tonnes of grain from external sources.
To mitigate the looming food crisis, Zimbabwe has successfully tapped into continental resources.
The nation recently received a significant financial boost in the form of drought insurance from an African Union agency.
Concurrently, Zimbabwean authorities have initiated appeals for international food aid to supplement these efforts.
The Zimbabwean government is poised to unveil its mid-term fiscal review in the coming weeks.
This presentation is expected to delineate strategies for navigating the immediate economic headwinds while laying the groundwork for the anticipated recovery.
Zimbabwe’s predicament underscores the broader challenges confronting the Southern African region as it contends with the escalating impacts of climate change.
As nations in the area grapple with food insecurity and economic instability, the imperative for robust climate adaptation strategies and international collaboration becomes increasingly evident.
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