Zimbabwe must shift from coercive decrees to tangible financial incentives if it is to successfully formalise its economy and capture future GDP growth, Mr Lawrence Nyazema, Guest of Honour at the ZEEX Connect Supply Chain Finance Forum, said today.
Speaking at the Golden Conifer in Harare, Mr Nyazema set the national strategic context for supply chain finance, arguing that government mandates alone will not solve the issue of informality. Instead, he advocated for a financial ecosystem where compliance is directly rewarded.
“The line is: when formality pays, not when they are told to do so,” Mr Nyazema said. “If you formalise and come on to the blackboard, you get funding at reasonable prices.”
He emphasised that the ZEEX Connect platform—which aims to solve liquidity constraints and frame the Anchor Buyer as a vital partner in a national infrastructure project—is a practical example of this philosophy. Mr Nyazema urged policymakers to replicate this model on a national scale, estimating that an additional $2 to $3 billion in capital is currently circulating outside the formal banking system.
“Our appeal to the Ministry of Finance and other regulators is to say, can we come up with more incentives that reward the process of moving from informalisation to formalisation, just like what we’ve done with this project,” he said. “Decrees will only take us to a limited extent.”
Turning to the platform’s targets, Mr Nyazema revealed that ZEEX aims to raise and distribute at least $10 million by the end of the year. However, he stressed that the long-term potential is far greater.
“For 2027, I’m not thinking of tens of millions of US dollars. Because the potential is more than $1 billion. If we get it right,” he said.
He warned, however, that realising this ambition requires confronting three critical risks: securing the commitment of large corporates to discount their invoices on the exchange; ensuring the public sector continues to make timely payments, particularly to SMEs; and carefully managing the platform’s transition as it scales.
Finally, Mr Nyazema issued a stern warning on market integrity, citing a recent multibillion-dollar invoice discounting fraud in the United States. “For us to be a $1 billion industry, let’s stay away from such practices,” he said. “It’s an appeal to the SMEs to say integrity is going to be the most important feature. Yes, those who provide capital will come up with controls. But let’s not be tempted to cut the corner.”
Mr Nyazema’s address complemented the forum’s keynote by ZSE Group CEO Justin Bgoni, who highlighted how ZEEX broadens the ZSE’s infrastructure beyond traditional markets. As the country anticipates billions of dollars in new GDP over the next decade, Mr Nyazema stressed the urgency of the moment. “A billion US dollars in new GDP is going to be created over the next 10 years, and I would hate it for us as Zimbabwe to miss that particular opportunity,” he warned.-herald
