2026 a year of Brick by Brick

Itai Mazire

The Ministry of Local Government has taken significant strides in 2025 to provide housing units for thousands of war veterans and youths. This initiative is poised to transform lives and foster sustainable communities across the nation.

Under the leadership of Minister Daniel Garwe, the ministry has prioritized housing as a fundamental human right, recognizing the sacrifices made by war veterans and the potential of the youth to contribute to national development. “We owe it to our heroes and the next generation to ensure they have access to secure, affordable housing,” Garwe stated. “This initiative is not just about building homes; it’s about building futures.”

In a collaborative effort with both public and private sectors, the ministry has launched several housing projects aimed at fast-tracking the construction of affordable units. “By working together with various partners, we are accelerating our housing delivery mechanisms to meet the urgent needs of these communities,” Garwe explained.

The impact of this housing initiative is already evident, as hundreds of families are now moving into newly constructed homes designed to provide modern amenities while being cost-effective. “This project signifies hope and stability for many; it’s a step towards restoring dignity for our veterans and empowering our youth,” he added.

Moreover, the ministry’s approach includes providing support services, such as financial literacy programs and job training, to ensure that beneficiaries can sustain their new living environments. “We want to ensure that these housing solutions translate into real opportunities for growth and self-sufficiency,” Garwe emphasized.

The Ministry of Local Government continues to uphold its commitment to social justice and economic empowerment, it is setting a precedent for future housing policies. With unwavering determination, the ministry is not only addressing immediate housing needs but also fostering a spirit of community resilience and solidarity for 2025 and beyond.

Itai Mazire

As the year draws to a close, Honourable Daniel Garwe, Minister of Local Government and Public Works, has emerged as a transformative force in local governance.

Under his stewardship, the ministry has made significant strides in implementing service delivery standards, with the focus now shifting to the ambitious Minimum Service Delivery Standards 2 (MSDS2).

Honourable Garwe said recent developments have addressed key areas of community concern, notably efficient refuse collection and enhanced water services in Harare. “We have worked tirelessly to improve service delivery; our residents deserve reliable and consistent access to essential services.”

A hallmark of Honourable Garwe’s tenure has been fostering collaboration between local authorities, bringing together councillors from the ruling party and the opposition to work in harmony.

“Uniting our local governance structures is crucial. It is about serving our communities collectively, and together we can effectively address the challenges they face,” said Honourable Garwe.

The enhancement of traditional leadership roles has also been a focal point.

“Traditional leaders are vital to our society. By uplifting their roles, we are ensuring that community voices are heard and integrated into our decision-making processes.”

The introduction of the Minimum Service Delivery Standards (MSDS) has set a new precedent, making quality service provision an expectation for residents.

“We are proud of our successful implementation of the first set of delivery standards, and the upcoming MSDS2 will further elevate the quality of life for all citizens,” he said.

In an effort to empower young people and honour veterans of the liberation struggle, the ministry is developing housing stands aimed at creating equitable opportunities. “It is our responsibility to ensure that the youth and veterans have the chance to secure a future through home ownership,” said Honourable Garwe.

He said the importance of private sector participation in enhancing service delivery has played a significant role. “Collaboration with the private sector is essential if we want to bring innovation and efficiency into our local authorities,” said Honourable Garwe.

As 2025 ends, Honourable Garwe’s initiatives reflect a commitment not just to improvement, but to a comprehensive approach to urban management and community welfare.

“Our vision is clear: a united, functioning local government that prioritises every citizen. We are just getting started.”

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.