HARARE – In a bid to revolutionize Zimbabwe’s infrastructure development landscape, Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, has called upon investors to devise innovative financing models.
This appeal marks a departure from the country’s historical reliance on short-term funding, which has been cited as a destabilizing factor for the Zimbabwean dollar.
Addressing delegates at a high-level Zimbabwe Investment Summit in South Africa, Minister Ncube underscored the importance of embracing fresh approaches to infrastructure financing. The summit, jointly organized by the Government and African Chrome Fields, convened representatives from various government ministries, agencies, the Reserve Bank of Zimbabwe, and the private sector.
Minister Ncube outlined a spectrum of financial instruments as potential solutions, including catastrophe bonds, green bonds, infrastructure bonds, diaspora bonds, and SME infrastructure bonds. He emphasized the government’s intention to support private sector initiatives while fostering increased private investment through public-private partnerships (PPP).
Analysts interpret Minister Ncube’s call for innovation as a strategic shift away from conventional financing methods towards exploring alternative tools to achieve sustainable infrastructure development. His remarks underscore Zimbabwe’s commitment to economic revitalization through the recent introduction of the structured currency, the Zimbabwe Gold.
The currency reform, anchored on a suite of policy measures, aims to establish a resilient economy by adopting a market-determined exchange rate system, efficient money supply management, and backing the local currency with gold and foreign currency reserves. Minister Ncube believes that alongside innovative financing models, these reforms will drive sustainable infrastructure development and economic stability.
Highlighting the significance of the recently introduced gold coins, digital gold tokens, and US dollar-denominated instruments, Minister Ncube emphasized their role in providing alternative retail investment options and liquidity-mopping instruments within the multiple currency system.
Looking ahead, Minister Ncube reaffirmed the government’s commitment to fostering an inclusive financial market accessible to all investors, including Zimbabweans in the diaspora. He lauded the establishment of the Victoria Falls Stock Exchange (VFEX) as part of an International Financial Services Centre, designed to attract investors with lower trading fees and favorable tax policies.
Moreover, the introduction of US dollar-denominated exchange aims to facilitate investments, particularly from the diaspora, in Zimbabwe’s infrastructural rehabilitation and provision of basic utilities. Minister Ncube’s vision encompasses a comprehensive strategy that balances macroeconomic stability with industrial activity and economic growth, ensuring Zimbabwe’s sustained progress on the global stage.
