Business Insider Africa
Zimbabwe has secured a place among Africa’s 15 largest economies, with gross domestic product (GDP) projected to reach $65.92 billion in 2026, supported by stronger mining activity, agricultural recovery and higher gold export earnings despite longstanding currency and debt challenges.
According to the International Monetary Fund’s (IMF) October 2026 World Economic Outlook, Zimbabwe ranks 14th among Africa’s largest economies, ahead of Cameroon at $64.81 billion and Tunisia at $62.74 billion.
The latest position marks an improvement from earlier IMF estimates, which placed the country 17th in 2025 with GDP of $51.22 billion. In April 2026, the Fund ranked it 16th at $56.71 billion, before revising its projections in October.
The southern African economy is expected to grow by 5% in 2026, following an estimated 8.3% expansion in 2025, supported by favourable gold prices, recovering agricultural production and remittance inflows.
Despite these gains, Zimbabwe trails Tanzania, whose economy is projected at $96.18 billion, $30.26 billion larger, with growth forecast at 5.9% in 2026.
The two countries also differ in currency policy, with Zimbabwe heavily reliant on the US dollar while Tanzania has strengthened the use of its national currency in domestic transactions.
Zimbabwe’s recovery highlights currency challenges
Years of high inflation, currency depreciation and repeated monetary reforms have weakened confidence in Zimbabwe’s local currency, driving widespread use of the US dollar.
In April 2024, the government introduced the Zimbabwe Gold (ZiG) to replace its previous currency and restore monetary stability.
Despite the reform, the US dollar remains dominant, accounting for about two-thirds of payments by value in the national payment system, according to the IMF’s May 2026 assessment.
The currency transition also affected major businesses, including Econet Wireless Zimbabwe, founded by billionaire Strive Masiyiwa, which adjusted its payment systems to accommodate the ZiG.
While continued reliance on the US dollar has helped households and businesses protect their finances against local currency depreciation, it has limited the central bank’s control over monetary policy.
In response, authorities tightened monetary measures to stabilise prices and exchange rates, with annual ZiG inflation reaching 3.7% in September 2026, up from 2.9% in August, according to the Zimbabwe National Statistics Agency.
The IMF acknowledged improvements in economic stability in its August assessment but called for continued fiscal discipline and reforms to strengthen confidence in the financial system.
Despite these gains, Zimbabwe’s history of currency instability complicates comparisons of its economic performance with other African countries.
Nominal GDP expressed in US dollars is influenced by exchange rates and national accounting methods, meaning currency movements can change international rankings without corresponding changes in production.
This is particularly relevant to Zimbabwe, whose national accounts were redenominated following the introduction of the ZiG in 2024, according to the IMF’s October 2026 database.
Consequently, the country’s projected $65.92 billion GDP reflects its economic output in dollar terms rather than providing a direct measure of monetary stability or living standards.
Tanzania offers a different economic picture
Tanzania, meanwhile, has pursued a different approach to currency management, taking steps to strengthen the use of the Tanzanian shilling in domestic transactions.
In March 2025, the government introduced regulations requiring businesses to price goods and services and accept payments in shillings, subject to specified exceptions.
Alongside these measures, agriculture, construction, mining, tourism and infrastructure investment have supported economic growth.
The country is also pursuing a proposed $42 billion liquefied natural gas project involving international energy companies, although a final investment decision remains pending.
Tanzania’s faster projected growth reflects these broader economic activities and investment trends rather than currency policy alone. Both countries remain exposed to exchange rate pressures and external economic risks.
