Zimbabwe`s economic landscape presents both unique challenges and opportunities, shaped by its monetary policy, banking system, trade practices, and the realities of its financial sector. The country’s economy has faced significant difficulties over the past two decades, including hyperinflation, which led to the abandonment of its currency in 2009. Since then, Zimbabwe has adopted multiple foreign currencies, primarily the U.S. dollar and the South African rand. Recently, the government reintroduced the Zimbabwean dollar (ZWL) alongside these foreign currencies. This reintroduction, however, has faced public skepticism due to inflation and limited trust in the local currency’s stability.

Zimbabwe’s banking system is characterized by a mix of both local and international banks, though the sector has historically struggled with issues of liquidity and capital adequacy. Despite these challenges, some resilience exists in sectors like mining, agriculture, and manufacturing, which contribute significantly to the GDP. For businesses, the key to success lies in navigating regulatory policies and foreign exchange restrictions. Zimbabwe’s financial regulations sometimes make repatriating profits challenging, which affects international investor confidence. Inflation and interest rate volatility also add layers of complexity for any businesses involved in imports and exports.

Trade between Zimbabwe and Middle Eastern countries, including the Gulf states, is still relatively limited but has shown signs of growth. Zimbabwe exports goods such as minerals (notably gold and diamonds), tobacco, and horticultural products. Middle Eastern countries, on the other hand, supply various goods, including oil, chemicals, and machinery. Zimbabwe’s trade partnerships in the Middle East could develop further, especially as the region seeks to diversify its economic interests beyond oil. Investments in sectors like agriculture, renewable energy, and mining are areas of mutual interest that could benefit both Zimbabwe and countries in West Asia.

Import and export activities with Zimbabwe involve navigating a mix of government controls, import restrictions, and potential benefits from regional trade agreements like the African Continental Free Trade Area (AfCFTA). Zimbabwe’s position within the Southern African Development Community (SADC) also provides it with regional trade access, which could help businesses looking to trade with Zimbabwe tap into a broader market.