Zimbabwe jumped up the rankings to become Southern Africa's fifth biggest economy after officials discovered billions of dollars worth of missing business activity. The country's economy got a massive boost from $35.2 billion to $44.4 billion when statisticians counted informal businesses and new companies that started after 2019. Finance Minister Mthuli Ncube said huge chunks of the economy had been growing quietly without anyone keeping proper records. The government found plenty of unreported business dealings that were flying under the radar for years. Zimbabwe still trails behind South Africa, Angola, Tanzania and the Democratic Republic of Congo in regional economic size.
Officials believe they missed even more economic activity because informal businesses are hard to track and measure properly. The revised numbers show individual incomes jumped from $2259 to $2859 per person during 2023. Government spending plans will stay the same but leaders want to collect more taxes from the bigger economy. Ncube explained that Zimbabwe struggles with cash flow problems rather than serious debt troubles. The expanded economic base gives the country better chances to pay back money owed to foreign lenders.
The government plans to bring more underground businesses into the official system through digital platforms and new technology. Progressive taxes will make wealthy people pay higher rates while social programs help poor families climb out of poverty. Zimbabwe expects average incomes to hit $3000 per person by 2025 as the economy keeps growing. The discovery proves the country's economy was much stronger than anyone realized.
Officials believe they missed even more economic activity because informal businesses are hard to track and measure properly. The revised numbers show individual incomes jumped from $2259 to $2859 per person during 2023. Government spending plans will stay the same but leaders want to collect more taxes from the bigger economy. Ncube explained that Zimbabwe struggles with cash flow problems rather than serious debt troubles. The expanded economic base gives the country better chances to pay back money owed to foreign lenders.
The government plans to bring more underground businesses into the official system through digital platforms and new technology. Progressive taxes will make wealthy people pay higher rates while social programs help poor families climb out of poverty. Zimbabwe expects average incomes to hit $3000 per person by 2025 as the economy keeps growing. The discovery proves the country's economy was much stronger than anyone realized.
