ZIMBABWE is stepping up efforts to unlock new sources of capital, with the Reserve Bank of Zimbabwe (RBZ) positioning impact investment as a key financing lever to accelerate the country’s drive towards an upper-middle-income economy by 2030.
Speaking at the Zimbabwe Impact Investment Dialogue held on the sidelines of the Zimbabwe International Trade Fair (ZITF) on Tuesday, RBZ Deputy Governor, Dr Innocent Matshe, said the country has reached a decisive point where co-ordinated action between Government, private investors, development finance institutions and entrepreneurs is now critical.
He said the dialogue is about mobilising the right kind of capital that is aligned with the country’s development priorities and capable of delivering measurable impact.
“From the perspective of the RBZ, impact investment is highly relevant because it sits at the intersection of three priorities, which are financial sector deepening, productive investment and macroeconomic stability,” said Dr Matshe.
Reserve Bank Of Zimbabwe
He described impact investment as critical to Zimbabwe’s economic strategy, as it sits at the intersection of financial sector deepening, productive investment and macroeconomic stability.
Dr Matshe said such capital, which targets both financial returns and developmental outcomes, has the potential to unlock growth in key sectors including renewable energy, agriculture, infrastructure, housing, small to medium enterprises (SMEs) and climate resilience.
“The RBZ’s work on monetary and exchange rate stability is therefore a precondition, not just a background condition, for the ambitions we are discussing today. Over the past two years, Zimbabwe has made significant strides in this area,” said Dr Matshe.
He noted that public resources alone are inadequate to fund the scale of economic transformation required, making it imperative for the country to crowd in private capital and strengthen financial sector innovation.
Dr Matshe stressed that macroeconomic stability remains the foundation for attracting long-term investment, noting progress made over the past two years.
He said the introduction of the Zimbabwe Gold (ZiG) currency marks a structural shift towards anchoring monetary policy on hard assets, a move aimed at improving predictability for investors with long-term horizons.
In a significant policy signal, Dr Matshe said the central bank is actively reviewing regulatory frameworks to ensure they enable, rather than constrain, the growth of impact investment.
“The financial sector must be a conduit, not a barrier,” said Dr Matshe.
He said the RBZ is examining how prudential regulations can better accommodate blended finance structures, patient capital, as well as instruments such as green bonds and social impact bonds without undermining financial system stability.
Dr Matshe acknowledged that existing risk-weighting models and collateral requirements may be inadvertently limiting investment in critical sectors such as agriculture, renewable energy, MSMEs and climate adaptation.
At the same time, he said, addressing investor concerns around exchange rate volatility and capital repatriation remains a priority.
“We know that exchange rate uncertainty and capital account restrictions have historically been among the most cited barriers to foreign investment in Zimbabwe. These concerns are legitimate, and we are working systematically and deliberately to address them,” said Dr Matshe.
He said ongoing reforms to improve exchange rate stability, enhance transparency in foreign currency allocation and ensure predictable repatriation frameworks are critical to strengthening Zimbabwe’s investment case.
Beyond foreign capital, Dr Matshe highlighted the untapped potential of domestic savings, particularly within pension funds and insurance companies, to drive long-term investment.
In this regard, the RBZ is working jointly with the Insurance and Pensions Commission (Ipec) to review investment guidelines to allow greater participation in infrastructure, private equity and other SDG-aligned projects.
“Mobilising even a modest fraction of domestic pension assets towards impact investment would be transformative, and it would reduce Zimbabwe’s dependence on external capital flows, which are always subject to global risk appetite and geopolitical conditions,” said Dr Matshe.
He also revealed that the RBZ is developing a Zimbabwe-specific sustainable finance taxonomy in collaboration with regional and international partners. The framework will guide investors and financial institutions in identifying environmentally sustainable and development-aligned investments.
He said the central bank is also refining the regulatory treatment of blended finance instruments, including first-loss capital structures and guarantees from development finance institutions, to catalyse co-investment.
Ultimately, Dr Matshe said achieving Vision 2030 will require a significant shift in both the scale and quality of investment.
“Impact investment, capital that works not just for returns but for people, for climate, for jobs, for food security, is exactly the kind of investment that can help us get there faster, more equitably, and more sustainably,” he said.
“The Reserve Bank of Zimbabwe is committed to being a constructive, forward-looking partner in building the financial conditions that make this vision achievable.”-herald
