Zim News Blog -NEWS NETWORK

A quiet exodus is happening in Zimbabwe’s corporate world. From mortgage finance giants to manufacturing firms, the smartest minds in Zimbabwean business are packing their bags and crossing the Zambezi. A high-level trade mission to Lusaka this week has exposed a hidden detail of our economy: Zimbabwean companies are finding it easier to thrive in […]

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The first group of Nigerians repatriated from South Africa following escalating anti-immigrant attacks were due to land in Lagos on Thursday, officials said.

Anti-foreigner violence has convulsed South Africa for weeks as gangs armed with sticks, whips and shields have marched through parts of the “rainbow nation,” demanding that people with no residency papers leave by June 30.

Foreign nationals have reported being intimidated and beaten by mobs going door to door, families have been forced from their homes, and many have left in the face of the threats.

Ghana, Mozambique and Malawi have already repatriated hundreds of their citizens in recent weeks.

South Africa is Africa’s largest economy and hosts more than three million foreigners, just over five percent of its population, according to the country’s statistics agency.

But unemployment exceeds 30 percent, fueling anger toward migrant workers.

According to Nigeria’s foreign ministry, 262 passengers were due to return to Nigeria on Thursday on a flight chartered by Abuja that is expected to land around 11:00 am (1200 GMT), out of around 1,000 who have said they want to leave South Africa.

The country, which has long been a destination for both legal and undocumented African workers, has faced recurring waves of xenophobic violence since 2008, when dozens of migrants were killed and thousands displaced.

The latest spike comes as political parties are gearing up for local government elections in November.

Source: AFP

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The World Bank on Thursday cut its global growth forecast for 2026 to 2.5% due to the war in the Middle East, and said growth could slow to just 1.3% if energy supply disruptions prove more severe and come with substantial stress in financial markets.

Global growth reached 2.9% in 2025, the bank said in its semi-annual Global Economic Prospects, up 0.2 percentage point from its estimate in January. Its 2026 forecast is down 0.1 percentage point from January, the lowest seen since the COVID pandemic that began in late 2019.

The bank lowered forecasts for two-thirds of countries as a result of the war, with the biggest cuts affecting the United Arab Emirates, Iraq and other countries in the Middle East whose energy exports have been hit hard by the conflict.

The World Bank’s stark outlook comes as the war launched by U.S. and Israeli strikes on Iran on February 28 drags into a fourth month. It has sent energy prices up sharply due to the closure of the Strait of Hormuz, renewed inflationary pressures worldwide and fueled expectations of tighter monetary policy across many countries. Fertilizer prices are also up sharply, raising concerns about a major food supply crisis.

Oil prices closed nearly $2 higher on Wednesday after U.S. President Donald Trump said the U.S. would attack Iran “very hard” if no peace deal was finalized, following one of the most significant exchanges of fire since an April ceasefire.

The World Bank said its baseline forecast assumed an average Brent crude oil price of $94 for the year, up 36% from 2025, and that the worst disruptions to energy supplies would abate by the end of July, with global headline inflation seen at 4%.

It said growth could slow to 2.1% if the energy disruptions lasted longer and oil prices averaged $115 per barrel this year, which could drive inflation to 4.4%. The outlook would worsen further, with growth decelerating to just 1.3%, if the energy shock affected financial markets, resulting in lower energy prices, greater volatility and weaker confidence, it said.

“These risk scenarios show how quickly the outlook could weaken if energy and financial pressure reinforce each other,” Ayhan Kose, the World Bank’s deputy chief economist, said. If the energy shock triggered a financial market shock, confidence could erode quickly, he said.

Growth is lower than last decade

Global growth is expected to improve to 2.8% in 2027 and 2028, but that remains 0.4 percentage point below the average rates seen during the 2010s due to a slew of factors, including slower population growth, slower private investment growth, falling public investment, rising public debt and slower growth in trade, World Bank chief economist Indermit Gill said.

“The world economy is a lot less resilient today than it was in 2008 and even as compared with 2018,” Gill told reporters, predicting the next years would be marked by high policy uncertainty, inflationary pressures and high interest rates.

Weak growth in developing economies has stalled progress toward advanced-economy income levels, with dozens of developing countries other than China and India looking at a “lost decade” in which they saw no progress on narrowing their per capita income gap with advanced economies, the report said.

Developing economies have been hit harder by the war, with the bank now projecting growth at a post-pandemic low of 3.6% this year, down from 4.4% in 2025, the bank said.

The bank maintained its forecast of 2.2% growth in the U.S. economy in 2026, but said that could taper off to 2.1% in 2027 and 2% in 2028. The euro area was expected to grow by 0.8% in 2026, down from 1.4% in 2025. Japan’s GDP was forecast to grow 0.7% in 2026, down from 1.1% in 2025.

The World Bank forecast GDP growth of 4.2% in China in 2026, a downward revision of 0.2 percentage point, after 5% growth in 2025.

Middle east countries hit hardest

It slashed its forecast for GDP growth in the Middle East, North Africa, Afghanistan and Pakistan by 2.7 percentage points to 1.6% in 2026, down from 4% in 2025, but said growth in the region could rebound to 5% in 2027.

The United Arab Emirates was expected to see growth of 2.4% in 2026, down sharply from the January forecast of 5% and the 2025 rate of 6.2%. The bank also lowered Turkey’s 2026 GDP growth forecast by 0.9 percentage point to 2.8%.

The World Bank said India remained the fastest-growing large economy in the world, with its GDP seen growing by 6.6% in 2026, after growth of 7% in 2025. Growth rates in India were expected to remain fairly high for the next two decades, Gill said.

Source: Reuters

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HARARE – The Zimbabwe Stock Exchange has entered into a strategic partnership with INVESCI Asset Management aimed at strengthening the development of the Zimbabwe Entrepreneurship Exchange (ZEEX), a newly approved digital capital market platform designed to expand financing options for small and medium enterprises (SMEs).

The Memorandum of Understanding (MoU), announced on Tuesday, positions INVESCI as a key institutional partner in the rollout of ZEEX, signalling rising confidence among capital market players ahead of the platform’s formal launch.

ZEEX has recently secured regulatory approval from the Securities and Exchange Commission of Zimbabwe, clearing a critical milestone in its establishment as a regulated marketplace intended to connect entrepreneurs with investors through a transparent, structured digital environment.

According to the ZSE, the initiative is expected to broaden access to capital for emerging businesses while deepening the country’s financial markets through increased participation, improved governance standards, and enhanced investment flows into the SME sector.

Under the agreement, the ZSE and INVESCI will collaborate on assessing investment opportunities channelled through the ZEEX platform, refining listing criteria, and contributing to advisory forums that shape the operational and regulatory framework of the exchange.

The partnership also includes coordinated efforts to promote SME capital market development, share market intelligence, and support policy engagement aimed at building a sustainable ecosystem for entrepreneurial financing.

ZSE Holdings group chief executive, Justin Bgoni, said the collaboration underscored growing institutional belief in the potential of ZEEX to transform access to capital for small businesses.

“The formalisation of this partnership with INVESCI is a clear demonstration that institutional investors recognise the transformative potential of ZEEX,” said Bgoni.

“By bringing structured capital and institutional rigour into the SME space, we are laying the foundation for a robust and inclusive capital market that serves the full spectrum of Zimbabwe’s entrepreneurial economy.”

The agreement comes at a time when Zimbabwe’s capital markets are increasingly exploring digital platforms as a mechanism to formalise informal enterprises, expand investor participation, and improve transparency in fundraising activities for small and growing businesses.

You’re using a less power

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HARARE – Zimbabwean clothing retailer Edgars Stores Limited delivered a strong first-quarter performance, signalling renewed momentum in its turnaround strategy as rising sales volumes and growing cash purchases helped the group strengthen its position in an increasingly competitive retail market.

The retailer recorded a 43 percent increase in group sales volumes during the quarter ended April 5, with total units sold rising to 543,100 from 379,535 in the corresponding period last year.

The performance comes against a backdrop of subdued consumer spending, persistent competition from the informal sector and ongoing pressure on household incomes, highlighting the resilience of the company’s recovery efforts.

Group Chief Executive Officer Sevious Mushosho said the growth reflected improvements in product offerings and stronger customer engagement initiatives.

“Sales volumes increased by 43 percent, from 379,535 units in the prior year’s first quarter to 543,100 units in the current period. This growth was driven by improved merchandise assortments and customer endorsements of the product range and overall offering,” he said.

The results suggest that management’s focus on merchandise competitiveness and customer experience is beginning to translate into stronger market share gains for the retailer.

Shift Towards Cash Sales

A notable feature of the quarter was the continued migration of customers towards cash purchases, a trend increasingly evident across Zimbabwe’s formal retail sector.

At the flagship Edgars chain, sales volumes climbed 35 percent to 172,320 units compared to 127,230 units during the same period last year.

The sales mix also shifted significantly, with cash transactions accounting for a larger share of total sales.

“The sales mix between credit and cash shifted notably towards cash, with credit sales accounting for 54 percent (2024: 66 percent) and cash sales increasing to 46 percent (2024: 34 percent),” said Mushosho.

The growing preference for cash transactions is widely viewed as a positive development for retailers as it improves liquidity and reduces exposure to credit risk.

Jet Continues to Lead Growth

Budget-focused retailer Jet Stores remained the group’s strongest growth engine during the quarter.

Sales volumes at Jet increased by 37 percent to 302,054 units from 220,204 units recorded during the comparable period last year.

The chain also experienced a gradual shift towards cash purchases.

“Similar to Edgars Chain, the sales mix between credit and cash sales observed a shift towards cash sales closing at 56 percent (2024: 62 percent) and 44 percent cash sales (2024: 38 percent),” he said.

Industry analysts say Jet’s strong performance reflects increasing consumer demand for affordable clothing options as households continue to manage constrained disposable incomes.

Manufacturing and Financial Services Contribute

Edgars’ manufacturing subsidiary, Carousel Manufacturing, recorded modest growth during the quarter, with production increasing by 0.8 percent to 95,184 units from 94,403 units a year earlier.

Management expects a stronger performance from the unit as summer production schedules commence in June.

Meanwhile, the group’s financial services business continued to provide an important earnings contribution.

Revenue from the division rose 11 percent year-on-year to US$1.5 million, supported by growth in the debtors’ book.

“The increase was underpinned by an improved debtors book which grew to US$11.2 million from US$9.8 million in the comparative period, representing 14 percent growth on the back of increased credit sales,” Mushosho said.

Stable Economic Conditions Offer Support

The retailer noted that the operating environment remained relatively stable during the review period, aided by exchange-rate stability under the willing-buyer, willing-seller foreign exchange system and easing inflationary pressures.

While management remains cautiously optimistic about the outlook, it acknowledged ongoing challenges, including utility cost increases, constrained consumer demand and rising input costs.

The company expects improved agricultural output to support broader economic activity and consumer spending during the year.

“Management will continue to focus on working capital discipline, cost containment, merchandise competitiveness, selective store expansion and maintaining prudent credit risk management across the Group’s operations,” Mushosho said.

Recovery Momentum Building

The latest trading update points to a company that is steadily rebuilding momentum after several challenging years for Zimbabwe’s formal retail sector.

With customer traffic improving, cash sales increasing and key business units delivering growth, Edgars appears to be strengthening its competitive position while laying the foundation for sustainable long-term recovery.

For investors and industry observers, the results provide further evidence that established formal retailers can still capture market share despite the rapid growth of informal trading channels and changing consumer spending patterns.

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