Financial services firm Inter Horizon Securities indicates that Zimbabwe's agricultural sector is navigating a complex landscape of global economic headwinds and climate-related challenges, despite an otherwise favorable harvest season.
The report highlights the dual pressures of international market volatility and localisad weather events, which are shaping the outlook for the nation’s key economic driver.
The 2025 Zimbabwe Agriculture Sector Report points to a downward revision of global growth projections by the World Bank—from 2.7% to 2.3%—a development that could curb international demand for agricultural exports.
It also cites rising trade tensions and delays in global rate cuts as factors contributing to an uncertain economic environment.
This external pressure comes on the heels of a weak La Niña event that initially pushed global maize prices up by 11% in the first quarter of the year. However, recent rains in key South American exporting nations have since eased food costs.
On the domestic front, the country’s agriculture sector has shown resilience. Following a severe drought during the 2023/24 season that caused a 60% decline in maize yields, Zimbabwe’s food security outlook has improved significantly in 2025.
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This rebound is driven by an above-average cereal harvest, which has boosted the availability of staple commodities.
Additionally, the tobacco sector—a major foreign currency earner—recorded strong performance, with a record 353 million kilograms sold this season.
However, experts caution that long-term resilience will require substantial policy and infrastructure investment.
According to a World Bank report, climate change could erode up to 12% of Zimbabwe’s GDP annually, with every dollar invested in early, anticipatory measures saving up to US$16 in future costs.
“To strengthen Zimbabwe’s resilience to weather shocks and climate change, a dual approach is essential, involving substantial investment in climate adaptation and the enhancement of anticipatory actions,” said Dominick Revell de Waal, a World Bank Senior Economist.
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