“GDP is projected to grow by 4.6% in 2018/19 and 5.6% in 2019/20. Agricultural improvements, stable macroeconomic fundamentals, the recovery in global commodity prices, and continued foreign direct investment inflows are projected to drive growth. Due to high dependence on rain-fed agriculture, weather-related shocks are key risks to export commodities such as tea, tobacco, and other products, as experienced in 2017. The long dry spell in the first half of 2018 and fall 2018’s armyworm infestation reduced the maize output, contributing substantially to GDP deceleration in 2018. A number of government initiatives aim at more resilient growth. To strengthen the industrial base, constrained by inadequate energy and water supplies, a feasibility study was completed in 2017 for the Kholombidzo Hydropower Generation Project, which will increase the country’s electricity generation capacity. Recognizing that agricultural performance continues to be hampered by adverse weather shocks, the government launched the National Agricultural Policy 2016 to increase production and the National Irrigation Policy 2016 to support irrigation, agricultural diversification, and value addition. In 2016, parliament enacted new land laws, including the Land Act, the Physical Planning Act, the Customary Land Act, and the Land Acquisition (Amendment) Act, to accelerate land registration for improved food production and infrastructure development. ”
Source: African Economic Outlook 2019 (African Development Bank)
