The Zimbabwean economy is currently experiencing severe challenges of slow economic growth, low commodity prices and drought impacts. Slow economic growth and low commodity prices are intrinsically linked, as the global downturn has brought about a situation whereby the world’s leading economies, such as China, are slowing down, and this has a trickledown effect on emerging economies such as Zimbabwe, as demand for their raw material wanes.
The economic growth of Mozambique has been one of the fastest on the African continent for a decade, with growth averaging at 7%, between 1993 and 2014. Conversely, the growth trend altered in 2016 to a rate of 3% from 6% in 2015, driven by a tumultuous commodity market, adversarial climate conditions and the resultant depreciation of the Mozambican metical.
The SADC region experienced decline in growth rates in 2015 and 2016. When delivering his 2017/18 budget speech, Motswana Finance Minister, Kenneth Matambo, highlighted that the region is expected to record a real GDP growth rate of 3.1% in 2016, representing a decline of 0.4%, compared to 3.5% in 2015.