Home

Zimbabwe vs. South Africa

Economy

ZimbabweSouth Africa
Economy - overview

Zimbabwe's economy depends heavily on its mining and agriculture sectors. Following a contraction from 1998 to 2008, the economy recorded real growth of more than 10% per year in the period 2010-13, before falling below 3% in the period 2014-17, due to poor harvests, low diamond revenues, and decreased investment. Lower mineral prices, infrastructure and regulatory deficiencies, a poor investment climate, a large public and external debt burden, and extremely high government wage expenses impede the country's economic performance.

Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Adoption of a multi-currency basket in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - reduced inflation below 10% per year. In January 2015, as part of the government's effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe, though transactions were predominantly carried out in US dollars and South African rand until 2016, when the rand's devaluation and instability led to near-exclusive use of the US dollar. The government in November 2016 began releasing bond notes, a parallel currency legal only in Zimbabwe which the government claims will have a one-to-one exchange ratio with the US dollar, to ease cash shortages. Bond notes began trading at a discount of up to 10% in the black market by the end of 2016.

Zimbabwe's government entered a second Staff Monitored Program with the IMF in 2014 and undertook other measures to reengage with international financial institutions. Zimbabwe repaid roughly $108 million in arrears to the IMF in October 2016, but financial observers note that Zimbabwe is unlikely to gain new financing because the government has not disclosed how it plans to repay more than $1.7 billion in arrears to the World Bank and African Development Bank. International financial institutions want Zimbabwe to implement significant fiscal and structural reforms before granting new loans. Foreign and domestic investment continues to be hindered by the lack of land tenure and titling, the inability to repatriate dividends to investors overseas, and the lack of clarity regarding the government's Indigenization and Economic Empowerment Act.

South Africa is a middle-income emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and a stock exchange that is Africa's largest and among the top 20 in the world.

Economic growth has decelerated in recent years, slowing to an estimated 0.7% in 2017. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 27% of the workforce, and runs significantly higher among black youth. Even though the country's modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability but has been plagued with accusations of mismanagement and corruption and faces an increasingly high debt burden.

South Africa's economic policy has focused on controlling inflation while empowering a broader economic base; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness, and frequent work stoppages due to strike action. The government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas, to increase job growth, and to provide university level-education at affordable prices. Political infighting among South Africa's ruling party and the volatility of the rand risks economic growth. International investors are concerned about the country's long-term economic stability; in late 2016, most major international credit ratings agencies downgraded South Africa's international debt to junk bond status.

GDP (purchasing power parity)$41.533 billion (2019 est.)

$45.194 billion (2018 est.)

$43.112 billion (2017 est.)

note: data are in 2017 dollars
$730.913 billion (2019 est.)

$729.799 billion (2018 est.)

$724.1 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate3.7% (2017 est.)

0.7% (2016 est.)

1.4% (2015 est.)
0.06% (2019 est.)

0.7% (2018 est.)

1.4% (2017 est.)
GDP - per capita (PPP)$2,836 (2019 est.)

$3,130 (2018 est.)

$3,028 (2017 est.)

note: data are in 2017 dollars
$12,482 (2019 est.)

$12,631 (2018 est.)

$12,703 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 12% (2017 est.)

industry: 22.2% (2017 est.)

services: 65.8% (2017 est.)
agriculture: 2.8% (2017 est.)

industry: 29.7% (2017 est.)

services: 67.5% (2017 est.)
Population below poverty line38.3% (2019 est.)55.5% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 2%

highest 10%: 40.4% (1995)
lowest 10%: 1.2%

highest 10%: 51.3% (2011 est.)
Inflation rate (consumer prices)241.7% (2019 est.)

10.6% (2018 est.)

0.9% (2017 est.)
4.1% (2019 est.)

4.6% (2018 est.)

5.2% (2017 est.)
Labor force7.907 million (2017 est.)14.687 million (2020 est.)
Labor force - by occupationagriculture: 67.5%

industry: 7.3%

services: 25.2% (2017 est.)
agriculture: 4.6%

industry: 23.5%

services: 71.9% (2014 est.)
Unemployment rate11.3% (2014 est.)

80% (2005 est.)

note: data include both unemployment and underemployment; true unemployment is unknown and, under current economic conditions, unknowable
28.53% (2019 est.)

27.09% (2018 est.)
Distribution of family income - Gini index44.3 (2017 est.)

50.1 (2006)
63 (2014 est.)

63.4 (2011 est.)
Budgetrevenues: 3.8 billion (2017 est.)

expenditures: 5.5 billion (2017 est.)
revenues: 92.86 billion (2017 est.)

expenditures: 108.3 billion (2017 est.)
Industriesmining (coal, gold, platinum, copper, nickel, tin, diamonds, clay, numerous metallic and nonmetallic ores), steel; wood products, cement, chemicals, fertilizer, clothing and footwear, foodstuffs, beveragesmining (world's largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repair
Industrial production growth rate0.3% (2017 est.)1.2% (2017 est.)
Agriculture - productssugar cane, maize, milk, tobacco, cassava, vegetables, bananas, beef, cotton, orangessugar cane, maize, milk, potatoes, grapes, poultry, oranges, wheat, soybeans, beef
Exports$4.422 billion (2018 est.)

$6.252 billion (2017 est.)
$123.864 billion (2019 est.)

$127.055 billion (2018 est.)

$123.79 billion (2017 est.)
Exports - commoditiesgold, tobacco, iron alloys, nickel, diamonds, jewelry (2019)gold, platinum, cars, iron products, coal, manganese, diamonds  (2019)
Exports - partnersUnited Arab Emirates 40%, South Africa 23%, Mozambique 9% (2019)China 15%, United Kingdom 8%, Germany 7%, United States 6%, India 6% (2019)
Imports$7.215 billion (2018 est.)

$9.658 billion (2017 est.)
$131.721 billion (2019 est.)

$132.365 billion (2018 est.)

$128.141 billion (2017 est.)
Imports - commoditiesrefined petroleum, delivery trucks, packaged medicines, fertilizers, tractors (2019)crude petroleum, refined petroleum, cars and vehicle parts, gold, broadcasting equipment (2019)
Imports - partnersSouth Africa 41%, Singapore 23%, China 8% (2019)China 18%, Germany 11%, United States 6%, India 5% (2019)
Debt - external$9.357 billion (31 December 2017 est.)

$10.14 billion (31 December 2016 est.)
$179.871 billion (2019 est.)

$173.714 billion (2018 est.)
Exchange ratesZimbabwean dollars (ZWD) per US dollar -

82.3138 (2020 est.)

16.44579 (2019 est.)

322.355 (2018 est.)

234.25 (2010)

note: the dollar was adopted as a legal currency in 2009; since then the Zimbabwean dollar has experienced hyperinflation and is essentially worthless
rand (ZAR) per US dollar -

14.9575 (2020 est.)

14.64 (2019 est.)

14.05125 (2018 est.)

12.7581 (2014 est.)

10.8469 (2013 est.)
Fiscal yearcalendar year1 April - 31 March
Public debt82.3% of GDP (2017 est.)

69.9% of GDP (2016 est.)
53% of GDP (2017 est.)

51.6% of GDP (2016 est.)
Reserves of foreign exchange and gold$431.8 million (31 December 2017 est.)

$407.2 million (31 December 2016 est.)
$50.72 billion (31 December 2017 est.)

$47.23 billion (31 December 2016 est.)
Current Account Balance-$716 million (2017 est.)

-$553 million (2016 est.)
-$10.626 billion (2019 est.)

-$13.31 billion (2018 est.)
GDP (official exchange rate)$21.441 billion (2019 est.)$350.032 billion (2019 est.)
Ease of Doing Business Index scoresOverall score: 54.5 (2020)

Starting a Business score: 72 (2020)

Trading score: 54.3 (2020)

Enforcement score: 39.7 (2020)
Overall score: 67 (2020)

Starting a Business score: 81.2 (2020)

Trading score: 59.6 (2020)

Enforcement score: 56.9 (2020)
Taxes and other revenues21.5% (of GDP) (2017 est.)26.6% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-9.6% (of GDP) (2017 est.)-4.4% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 27.5%

male: 25%

female: 31.4% (2019 est.)
total: 57%

male: 53.2%

female: 61.7% (2019 est.)
GDP - composition, by end usehousehold consumption: 77.6% (2017 est.)

government consumption: 24% (2017 est.)

investment in fixed capital: 12.6% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 25.6% (2017 est.)

imports of goods and services: -39.9% (2017 est.)
household consumption: 59.4% (2017 est.)

government consumption: 20.9% (2017 est.)

investment in fixed capital: 18.7% (2017 est.)

investment in inventories: -0.1% (2017 est.)

exports of goods and services: 29.8% (2017 est.)

imports of goods and services: -28.4% (2017 est.)
Gross national saving-2.2% of GDP (2017 est.)

19.1% of GDP (2016 est.)

8% of GDP (2015 est.)
14.9% of GDP (2019 est.)

14.9% of GDP (2018 est.)

16.1% of GDP (2017 est.)

Source: CIA Factbook