Finance · South Africa
How Governance Issues Impact Economic Growth in Zimbabwe
Moneyweb · 2026/01/26
Summary
The article discusses the challenges faced by many African countries, including Zimbabwe, where economic life is often influenced by the 'rule of men' rather than the 'rule of law.' This means that decisions affecting businesses and the economy are more based on individual power and authority than on clear, fair, and consistent laws. In Zimbabwe, this has led to economic instability, uncertainty for investors, and difficulties for small businesses trying to grow. When the rule of law is weak, it discourages both local and foreign investment, making it harder for the economy to develop and for people to find reliable jobs or opportunities. This situation highlights the importance of good governance and strong legal systems to support economic growth and stability in Africa.
OnABudget takeaway: For consumers and small business owners, weak rule of law means less certainty and more risk in the economy. Strong, fair laws are crucial for creating stable opportunities and protecting your investments.