Harare, Feb 1 (IANS): The World Bank (WB) has warned that climate change could erode up to 12 per cent of Zimbabwe's Gross Domestic Product (GDP) annually if the country does not implement robust measures to tackle the phenomenon.
In its latest Zimbabwe economic update report launched in Harare, Zimbabwe's capital, the WB urged Zimbabwe to bolster resilience against climate-related shocks, focusing on agriculture as a critical pillar of the economy.
Statistics from the Zimbabwean government show agriculture contributes from 11 per cent to 14 per cent of GDP and provides employment for some 70 per cent of the population and about 60 per cent of all raw materials for the industry.
The country's heavy reliance on rainfed systems and maize production, however, leaves it vulnerable to increasingly severe climate events, the WB noted.
In the 2023-2024 farming season, Zimbabwe experienced a severe El Nino-induced drought, resulting in a 60 per cent decline in maize yield compared to the five-year average. The significant reduction in rainfall, coupled with high temperatures, has led to widespread food insecurity and economic hardship.
The WB observed that the government's ambitious target to boost agricultural output to 12.5 billion US dollars by 2025 is under threat due to climate-induced challenges.
"Climate shocks disrupt GDP, trade balances, and fiscal stability. The 2023/2024 El Nino-induced drought alone caused approximately 363 million US dollars in damage losses," the WB said, Xinhua news agency reported.
"This cycle of drought and recovery undermines sustainable development and exacerbates poverty levels, making it imperative to enhance the resilience of the agricultural sector," said Easther Chigumira, World Bank senior agriculture specialist and co-author of the report.
She said to strengthen Zimbabwe's resilience to weather shocks and climate change, a dual approach is essential, involving substantial investment in climate adaptation and the enhancement of anticipatory actions.
The report, titled "Improving Resilience to Weather Shocks and Climate Change," highlighted the opportunity for Zimbabwe to strengthen resilience to climate shocks and further boost economic growth.