INVESTOR Hosting Centre chairperson Elias Hwenga says Zimbabwe should prioritise mobilising domestic institutional capital to finance local investment projects rather than relying predominantly on foreign investors.
Hwenga made remarks as Zimbabwe has substantial long-term capital held by pension funds, insurance companies and other institutional investors that remains underutilised despite growing demand for investment across key sectors of the economy.
For example, in the newly released first-quarter results from the Insurance and Pensions Commission (Ipec), for 2026, the pension industry’s total asset base increased by 10% to US$3,41 billion (ZiG86,46 billion).
This increase was largely driven by new investments and positive fair value adjustments on investment properties and equity holdings.
“Foreign investment should complement domestic capital, not replace it. Countries that have built resilient economies did so by first mobilising local capital to finance local development,” Hwenga told NewsDay Business.
He said pension funds and insurance companies were well suited to finance long-term investments in infrastructure, agriculture, manufacturing, mining and renewable energy.
However, many projects fail to attract funding because they are not investment-ready.
“The issue is not simply a shortage of capital. It is a shortage of bankable projects that meet the governance, financial and risk standards institutional investors require.”
Hwenga said improving project preparation through robust feasibility studies, sound financial modelling and stronger governance would unlock greater participation by domestic institutional investors while also increasing Zimbabwe’s attractiveness to foreign capital.
He added that directing more local capital into productive sectors would reduce dependence on external financing, retain investment returns within the country and strengthen economic resilience.
“Zimbabwe’s development will accelerate when domestic capital becomes the first source of project financing, with foreign investment serving as a strategic complement rather than the starting point.”
Consequently, he called for closer collaboration between project developers, investment intermediaries, financial institutions, and policymakers to build a pipeline of investment-ready projects capable of attracting both domestic and international capital.
