ZWE · snapshot 2026-08-09

Zimbabwe

Very HighOverride applied

Overall risk score

67.8

Percentile of scored universe

85th

Data coverage

97%

vs Australia (16.1)

+51.7

Rated Very High on its own indicators; a gate condition is also flagged.

The Very High rating stands on the computed score of 67.8 (Very High). The flagged condition — Targeted Australian autonomous sanctions framework (Zimbabwe) — would floor the band at High even on weaker data.

Sanctions & banking access

Where sanctions make Zimbabwe hard to operate in — under Australian law, under US/EU extraterritorial reach, and in practice at the bank. Comprehensive frameworks force Very High; severe secondary exposure or severed banking floors the band at High; the rest is disclosure.

Australian sanctions

DFAT frameworks that legally restrict Australian companies

Targeted framework

Targeted Australian autonomous sanctions framework (Zimbabwe)

US/EU secondary sanctions

Extraterritorial programs that bind you regardless of Australian law

No flag

No framework, program, or de-risking pattern identified.

Banking access

Will correspondent banks actually move your money out

Constrained

Legacy de-risking persists despite the 2024 lifting of most US country-program sanctions

Category breakdown

Political Stability & Governance

Very High
86.5+73.7 vs AU

6 indicators · 100% coverage

Economic Resilience

Very High
56.6+45.6 vs AU

7 indicators · 100% coverage

Financial & Currency Risk

Very High
77.6+71.7 vs AU

5 indicators · 100% coverage

Business Environment

Very High
67.7+32.8 vs AU

3 indicators · 75% coverage

Security & Crime

High
48.8+23.7 vs AU

4 indicators · 100% coverage

Climate & Social Compliance

Very High
71.9+61.5 vs AU

4 indicators · 100% coverage

Technology & Digital

Very High
61.9+48.2 vs AU

4 indicators · 100% coverage

Cultural Distance

Medium
43.2+42.4 vs AU

9 indicators · 100% coverage · not in overall score

Key risks and considerations

Zimbabwe rates Very High for market entry — an overall risk score of 67.8, riskier than 85% of rated economies and 52 points riskier than Australia.

An override floors the band at High: Targeted Australian autonomous sanctions framework (Zimbabwe).

Beyond the Australian framework, correspondent banking is constrained: Legacy de-risking persists despite the 2024 lifting of most US country-program sanctions.

The main risk drivers are elevated sovereign credit risk (OECD Category 7 / 7 — in default), no double-tax agreement with Australia, no investment-treaty protection with Australia, unstable prices (CPI 104.7%) and thin FX reserves (0.5 months of import cover).

Relative strengths: GDP growth and current account both rate Low, the least-risky rating band.

Possible mitigations

  • Repatriation channel risk. Correspondent banks may refuse or delay payments even where they are legal: test the channel with pilot transfers before committing capital, maintain more than one banking relationship, consider non-USD invoicing where lawful, and build payment delays into working capital.
  • Corruption and legal recourse. Run a strong anti-bribery program (Australian foreign-bribery law follows you abroad), conduct third-party due diligence, and seat dispute resolution offshore — arbitration clauses (e.g. SIAC or HKIAC) beat local courts.
  • Getting money out. Confirm profit-repatriation channels before committing capital: seek central-bank pre-approvals where required, consider an export-first model over an in-country entity, and structure via clear remittance jurisdictions.
  • Currency risk. Invoice in AUD or USD where the market allows, hedge unavoidable exposure, shorten receivable cycles, and build FX buffers into pricing.
  • Payment security. Elevated sovereign/transfer risk: prefer confirmed letters of credit or export credit insurance over open account terms, and watch for import-payment restrictions.
  • Price instability. Use indexation clauses, shorter pricing cycles, and local-cost pass-through mechanisms so inflation (or deflation) doesn't silently erode margins.

Generated automatically from this snapshot’s indicator data — a starting point for analysis, not advice.

Indicators

IndicatorValueRisk scoreRating
Political Stability & Governance
Voice & accountability (WGI)34.883.7Very High
Government effectiveness (WGI)32.186.1Very High
Regulatory quality (WGI)36.389.0Very High
Rule of law (WGI)36.187.7Very High
Control of corruption (WGI)22.589.1Very High
Political stability & absence of violence/terrorism (WGI PV)48.584.8Very High
Economic Resilience
GDP growth (3-yr average, %)5.0% (3-yr avg)15.0Low
Growth volatility (10-yr std dev, pp)±5.7 pp79.6Very High
Government net debt (% of GDP)43.835.0Medium
Inflation (CPI %, vs income-group target)104.795.0Very High
Current account (3-yr average, % of GDP)0.8% (3-yr avg)15.0Low
FX reserves (months of import cover)0.5 months95.0Very High
GDP per capita (PPP, current intl $)$6,47078.6Very High
Financial & Currency Risk
Capital-account openness (Chinn-Ito KAOPEN)0.4260.0High
Currency stability (regime-aware classification)Floating — crisis volatility (>35%)95.0Very High
Sovereign credit risk (OECD country risk classification)Category 7 / 7 — in default100.0Very High
FATF listing (grey / black list status)Not listed0.0Low
Double-tax agreement with AustraliaNone in force100.0Very High
Business Environment
FDI regulatory restrictiveness (OECD FDIRRI)0.1051.8High
Logistics performance (World Bank LPI)2.575.4Very High
Business readiness (World Bank B-READY pillar average)Insufficient data
Investment protection with Australia in force (BIT or FTA investment chapter)None in force100.0Very High
Security & Crime
Armed-conflict intensity (battle deaths per 100k, 5-yr)0.029.7Medium
Intentional homicide rate (per 100k)6.872.1High
Organised crime pervasiveness (GI-TOC criminality score)5.562.0High
DFAT Smartraveller advisory levelLevel 2 — Exercise a high degree of caution40.0Medium
Climate & Social Compliance
Physical climate vulnerability (ND-GAIN vulnerability)0.51176.6Very High
Disaster risk (INFORM Risk Index)5.076.4Very High
Modern-slavery prevalence (per 1,000)5.044.4Medium
Modern-slavery vulnerability score74.888.4Very High
Technology & Digital
E-government development (UN EGDI)0.476.9Very High
Internet users (% of population)41.682.5Very High
Cybercrime origination (World Cybercrime Index)0.010.0Low
Secure internet servers (per million people)90.078.4Very High

Per-indicator ratings are quartile bands of the 0–100 risk score. The Australia column shows the same indicator’s raw value for the Australian baseline in this snapshot.

Cultural distance

GLOBE 2004 societal practices · rated on distance from Australia · not in the overall score

ZimbabweAustraliaGLOBE practice score · scale 1–7
Power distanceVery High
5.67
4.74
Uncertainty avoidanceLow
4.15
4.39
Institutional collectivismLow
4.12
4.29
In-group collectivismHigh
5.57
4.17
Humane orientationLow
4.45
4.28
Performance orientationLow
4.24
4.36
AssertivenessMedium
4.06
4.28
Gender egalitarianismHigh
3.04
3.40
Future orientationMedium
3.77
4.09

Context — not scored

Unemployment

9.3%

Displayed, never scored: ambiguous for an entrant and unreliable where informal employment dominates. (2025, ILO modelled)

Trade agreement

No Australian FTA in force

Market access is decision-relevant but a benefit, not a risk — kept out of the rating.

Regional advisories

No higher regional advisory levels

DFAT Smartraveller sub-national advice where it exceeds the overall level.

Compare with

A score means little on its own. These economies scored closest to Zimbabwe in this snapshot, which is the fastest way to see whether the rating is telling you something specific or something regional.

All 218 economies · How to read these ratings