Current Affairs
Banking Reforms Seen as Key to Zimbabwe’s 90% Financial Inclusion Target by 2030
Banking sector reforms and deeper financial markets are central to Zimbabwe’s National Development Strategy 2 (NDS2), with Government aiming to increase financial inclusion to above 90 percent by 2030.
Under the 2026–2030 economic framework, the financial services sector has been identified as a key driver of inclusive growth, investment mobilisation and long-term economic stability. Authorities plan to broaden access to formal banking services, strengthen savings and credit uptake, and accelerate the use of digital financial solutions to support economic participation.
Through NDS2, Government intends to bring millions of currently unbanked and underbanked citizens into the formal financial system, while repositioning banks to better support productive sectors of the economy.
However, the Actuarial Society of Zimbabwe (ASZ) has warned that meeting these ambitions will require significant changes in banking models, particularly in risk assessment, capital deployment and revenue generation.
In its analysis of NDS2’s impact on the financial sector, ASZ said conventional lending approaches will be inadequate, especially when extending credit to sectors such as agriculture and small to medium enterprises (SMEs).
“To lend prudently to productive sectors under NDS2, banks must adopt actuarial-based credit risk models that incorporate alternative data beyond traditional collateral requirements,” the Society noted.
ASZ further highlighted that the proposed reforms demand a shift away from compliance-focused capital calculations towards more strategic capital management.
“Risk and actuarial professionals must focus on allocating capital to business lines that deliver returns above the cost of capital, rather than merely meeting regulatory thresholds,” the report said.
NDS2 also prioritises lower transaction costs and the expansion of financial technology through Regulatory Sandboxes, as Government seeks to promote affordable, digital-driven financial inclusion.
At the same time, the strategy introduces stricter Risk-Based Capital (RBC) frameworks across the sector — a development ASZ says will fundamentally reshape banks’ income structures. The Society noted that heavy reliance on non-interest income, which has historically insulated banks from lending risks, will increasingly come under regulatory scrutiny.
“This will compel banks to depend more on funded income from lending and high-volume digital transactions. While this supports financial deepening, institutions that fail to adapt may struggle to remain sustainable,” ASZ said.
According to the Society, the transition to full RBC regimes for both banks and insurers will expose inefficiencies in capital utilisation.
“Institutions holding idle capital or excessive risk without adequate returns will experience declining returns on equity,” ASZ warned.
Beyond financial inclusion, NDS2 places strong emphasis on infrastructure development and sustainable finance, with Government increasingly relying on non-budgetary funding mechanisms.
These include infrastructure bonds, Real Estate Investment Trusts (REITs) and Green Bonds, which are expected to become important tools for financing long-term development projects.
ASZ anticipates growth in specialised financial instruments under this policy direction, noting that they could help address the shortage of quality long-term assets needed by pension funds and insurance companies.
The Society added that prescribed asset frameworks are likely to evolve to prioritise infrastructure-linked and developmental investments.
“As a result, actuaries and investment analysts will need enhanced skills in valuing complex infrastructure projects and assessing climate-related risks,” the report said.
ASZ also cautioned that environmental, social and governance (ESG) considerations are now integral to financial sector growth, urging institutions to adopt ESG frameworks urgently.
According to the Society, access to international funding and local green finance incentives will increasingly depend on strong ESG compliance, positioning sustainability as a core component of financial deepening under NDS2 rather than an optional add-on.
Current Affairs
Floods ravage Mozambique, leaving widespread destruction
Wilma Mavhengere
The floods in Mozambique have left a trail of devastation, with countless people left homeless, their lives shattered, and their futures uncertain. The raging waters have claimed lives, destroyed homes and swept away livelihoods, thereby leaving behind a landscape of despair.
More than 300,000 people have been displaced by flooding in a province in Mozambique, its governor said Monday. Authorities had already announced that around 40 percent of the Gaza province has been submerged by floodwater following weeks of torrential rain in parts of southern Africa.
Mozambican President Daniel Chapo has cancelled his trip to the World Economic Forum in Davos, Switzerland, because of the severe flooding impacting central and southern parts of the country,y that is according to the state-run daily newspaper Noticias.
Gaza Governor Margarida Mapandzene Chongo reported that roughly 327,000 people are now staying in dozens of temporary shelters such as schools and churches after being evacuated from flooded and at‑risk areas in the southern province, which has a population of about 1.4 million.
Humanitarian groups warned earlier this month that about 200,000 people could be hit by the extreme weather in Mozambique, but that figure has already been surpassed. Cabinet minister and government spokesperson Inocencio Impissa said nearly 600,000 people have been affected in Gaza and neighbouring Maputo provinces.
Communities across Mozambique are grappling with the aftermath of severe flooding as waters begin to recede, exposing the full scale of the destruction. Homes have been washed away, livelihoods destroyed and critical infrastructure damaged. For many residents, the days ahead will be marked by loss, uncertainty and the difficult task of rebuilding. Authorities and aid groups are assessing needs on the ground as affected families try to come to terms with the devastation left behind by the disaster.
Current Affairs
Government to Compensate Over 700 Former Commercial Farmers This Year
The Government is set to compensate more than 700 former white commercial farmers whose land was acquired during the Fast-Track Land Reform Programme, as efforts intensify to resolve outstanding legacy issues linked to the historic land redistribution exercise.
Under the Global Compensation Deed (GCD) an agreement between the State and representatives of former farm owners Zimbabwe undertook to pay US$3,5 billion to approximately 3 500 former farmers as compensation for improvements made on expropriated land.
This year, about 740 former farmers are expected to receive payments, with the 2026 National Budget allocating US$10 million toward the programme as part of a phased settlement approach.
The compensation initiative forms a critical component of Zimbabwe’s arrears clearance and debt resolution strategy, which international financial institutions regard as a key reform requirement for restoring access to concessional funding, grants and debt relief.
Authorities say finalising compensation claims will help rebuild investor confidence, demonstrate respect for property rights and advance the country’s re-engagement agenda with global lenders such as the World Bank and the International Monetary Fund (IMF).
To ensure fiscal sustainability, Treasury has adopted a gradual payment framework that balances economic realities with the obligation to honour compensation commitments.
In line with the GCD, compensation applies strictly to improvements made on the land, including infrastructure, buildings, irrigation systems and equipment. No payment is made for the land itself, which remains vested in the State.
Addressing journalists during a question-and-answer session on the Land Tenure Title Deeds Programme in Harare on Tuesday, Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development, Professor Obert Jiri, said the compensation process has been ongoing and consistently supported through annual budget provisions.
“Compensation of former white commercial farmers is continuing. Each year, the national budget sets aside resources roughly 10 percent for this purpose, and Government has remained consistent in meeting this obligation over the past few years,” Prof Jiri said.
He added that Zimbabwe has received positive feedback from both domestic and international stakeholders for maintaining regular payments.
“There has been recognition from various countries and partners who have commended Government for honouring these commitments. The process is ongoing,” he said.
Treasury has confirmed that the compensation programme is embedded within the Roadmap for Arrears Clearance and Debt Resolution, which authorities view as essential for unlocking affordable financing, boosting investment and supporting economic recovery.
As at September 2025, compensation liabilities stood at US$3,191 billion, representing a significant portion of the country’s domestic debt.
Government maintains that settling these obligations is vital to improving Zimbabwe’s debt profile and strengthening re-engagement with the international community.
Beyond compensation, Prof Jiri said land tenure reforms are also being rolled out to improve agricultural productivity and provide greater security of tenure.
He revealed that unoccupied or abandoned farms, including those previously covered under Bilateral Investment Promotion and Protection Agreements (BIPPAs), are now eligible for title deeds under the ongoing reforms.
“Previously, abandoned farms would be reallocated to new beneficiaries. However, under the title deeds programme, unoccupied BIPPA farms can now be issued with title deeds to allow continued and productive use,” he said.
Prof Jiri further noted that white former commercial farmers who remained on their land after the land reform programme are also eligible for title deeds, a move aimed at promoting stability, safeguarding investment and sustaining agricultural output.
He said the combined impact of compensation payments and land tenure reforms would enhance confidence in Zimbabwe’s land administration system while consolidating the achievements of the land reform programme.
Compensation is being implemented in accordance with Section 72 of the Constitution, which provides that no compensation is payable for land acquired for public purposes, except for improvements made prior to acquisition.
Current Affairs
Chivhayo Blames Financing Challenges for Delays at Gairezi Hydro Project
Businessman Wicknell Chivhayo has addressed growing concerns surrounding the stalled 30-megawatt Gairezi Hydro Power Project, attributing the delays to financing constraints rather than mismanagement or misuse of funds.
Responding to questions raised by Nyanga South Member of Parliament Supa Mandiwanzira, Chivhayo said the project’s slow progress had been widely misunderstood, particularly by communities that had anticipated immediate economic benefits from the development.
He acknowledged the frustration felt by residents in the area, many of whom had expected employment opportunities and increased economic activity once construction began.
“I fully understand the disappointment of the community,” Chivhayo said, noting that expectations had been high due to the project’s potential to create jobs and stimulate local development. “I share the frustration of those who were hoping the project would already be delivering tangible benefits.”
Chivhayo dismissed claims that the project stalled because of poor management or payments that had already been made, insisting that access to sustainable financing remained the primary obstacle.
He further clarified that the Gairezi Hydro Power tender was not awarded to him as an individual, but to an international consortium led by Bharat Heavy Electricals Limited (BHEL), a state-owned engineering company from India.
The consortium also includes Angelique International, with Intratrek Zimbabwe participating as the local contracting partner. According to Chivhayo, the consortium secured the project after emerging as the lowest compliant bidder, meeting all technical and financial requirements set out in the tender process.
He explained that such consortium-based arrangements are standard practice in large-scale infrastructure projects, particularly across Africa, where local firms often partner with established international companies to leverage their technical expertise, balance-sheet strength, and access to global financing.
“Large infrastructure projects of this nature rely heavily on the financial credibility and engineering capacity of international partners,” Chivhayo said. “This model is widely used across the continent and is essential for projects that require long-term funding and specialised technical skills.”
The Gairezi Hydro Power Project is viewed as a strategic investment capable of contributing to Zimbabwe’s renewable energy mix, easing pressure on the national grid and supporting economic growth in Manicaland Province.
Chivhayo said efforts were continuing to unlock funding and ensure the project moves forward, adding that transparency and engagement with both policymakers and local communities remained key to restoring confidence.
The project’s future progress will be closely watched as Zimbabwe continues to pursue alternative energy solutions to address persistent power shortages and promote sustainable development.
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