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HARARE – The Zimbabwe Stock Exchange (ZSE) has signed a strategic Memorandum of Understanding with Lloyd Corporate Capital in a move aimed at expanding access to growth capital for high-potential small and medium-sized enterprises (SMEs) through the Zimbabwe Entrepreneurship Exchange (ZEEX), deepening the country’s capital markets and accelerating business formalisation.

The partnership, announced in a joint statement, seeks to bridge one of Zimbabwe’s most persistent economic challenges—the financing gap facing SMEs—by connecting investment-ready businesses with structured private capital and regulated capital market financing.

The initiative comes at a time when Zimbabwe is seeking to formalise its predominantly informal economy, stimulate entrepreneurship and mobilise private sector investment in support of Vision 2030.

According to the joint press statement, the partnership is designed to mobilise private-sector financing capacity for high-growth enterprises seeking capital through ZEEX, Zimbabwe’s recently established digital entrepreneurship exchange.

“Grounded in a shared vision that Zimbabwe’s most promising enterprises require access to sophisticated, commercially structured financing solutions, the partnership brings Lloyd Corporate Capital’s innovative financing expertise into alignment with ZSE’s regulated capital market infrastructure,” the statement said.

The partners said the collaboration would create “a new and powerful channel for scaling businesses on their path to formal market participation,” with particular emphasis on enterprises in Bulawayo, Matabeleland and surrounding regions.

Market analysts say the initiative reflects a growing recognition that Zimbabwe’s next phase of economic growth will depend not only on attracting foreign investment but also on improving domestic capital allocation to scalable local enterprises.

The agreement establishes five core areas of cooperation intended to strengthen Zimbabwe’s entrepreneurial finance ecosystem.

The first focuses on pipeline development through the identification, screening and prioritisation of high-potential, growth-oriented SMEs supported by Lloyd Corporate Capital.

The second centres on blended finance and co-investment structures that combine institutional capital with private-sector financing to prepare businesses for listing on ZEEX.

Capacity building forms another pillar of the partnership, with both organisations committing to deliver training programmes covering corporate governance, financial reporting standards, investor readiness and listing requirements.

The parties will also jointly undertake market development initiatives through investor forums, roadshows and SME financing conferences designed to showcase investment-ready businesses.

Finally, the partnership will explore innovative financial products, including SME bond programmes, structured growth capital, private placements, sustainability-linked finance and specialised SME investment funds.

Industry experts believe these initiatives could help address longstanding weaknesses in Zimbabwe’s entrepreneurial financing landscape, where many promising businesses struggle to transition from owner-managed enterprises to investment-ready companies.

ZSE Holdings Group Chief Executive Officer Justin Bgoni said Lloyd Corporate Capital brings commercial expertise that complements ZEEX’s objective of creating a structured pathway for SMEs into Zimbabwe’s formal capital markets.

“Lloyd Corporate Capital is bringing a commercially viable, private sector capability to structure and deploy financing solutions that are precisely calibrated to what a growth business actually needs at each stage of its journey,” Bgoni said.

“ZEEX is built to serve businesses that are ready to step into the formal capital market, and Lloyd Corporate Capital’s involvement means that more of those businesses will arrive at that threshold genuinely prepared, adequately capitalised and structurally sound. That is exactly the kind of ecosystem-building that will define ZEEX’s long-term impact.”

His remarks underscore an important challenge facing many African SMEs: access to finance alone is often insufficient without improvements in governance, financial reporting and institutional capacity.

Lloyd Corporate Capital Chairman Bekithemba L. Nkomo said the partnership creates a structured progression from private capital into regulated public markets.

“For over a decade, Lloyd Corporate Capital has worked alongside owners and management teams across Southern Africa to prepare growth businesses for their next stage of funding,” Nkomo said.

“Partnering with ZSE gives the enterprises we support a clear, regulated pathway from private capital into the formal market, and gives ZEEX a pipeline of businesses that have already been through the discipline of proper structuring, governance and advisory support. This MoU turns two complementary strengths into a single, seamless route from early-stage growth capital to public market participation.”

Analysts say one of the biggest weaknesses in African capital markets has been the absence of structured pathways connecting venture capital, private equity and public equity markets. The partnership seeks to address that gap by integrating business development, advisory services and capital market access within a single financing ecosystem.

The ZSE said the agreement strengthens the growing network of institutions supporting ZEEX.

“With each new partnership formalised, ZSE continues to assemble an increasingly comprehensive ecosystem of capital market enablers around ZEEX,” the statement said.

“The signing of this MoU with Lloyd Corporate Capital further reinforces the depth and diversity of that ecosystem, ensuring that the platform is supported by a well-rounded support network capable of serving enterprises at every stage of their growth and financing journey.”

ZEEX, recently approved as Zimbabwe’s dedicated entrepreneurship exchange, is designed to provide SMEs with access to primary fundraising, asset tokenisation and secondary-market trading within a regulated environment.

The platform is expected to play a central role in broadening access to capital while encouraging the formalisation of growth-oriented enterprises.

The partnership represents more than a corporate agreement; it reflects a broader evolution in Zimbabwe’s financial architecture.

For decades, access to long-term growth capital has remained one of the greatest constraints facing SMEs, which account for the overwhelming majority of businesses in Zimbabwe but contribute only modestly to formal capital markets.

By linking advisory services, blended finance, governance support and eventual capital market participation, the ZSE and Lloyd Corporate Capital are attempting to build what economists describe as a financing continuum—a system in which businesses can progressively access increasingly sophisticated sources of capital as they mature.

If successfully implemented, the initiative could expand Zimbabwe’s pipeline of investment-ready companies, deepen domestic capital markets, increase institutional investment opportunities and strengthen private-sector participation in economic growth.

For Zimbabwe, where formalising the SME sector remains central to economic transformation, the partnership signals an important step towards developing a more inclusive and diversified capital market capable of financing the country’s next generation of high-growth enterprises.

The post ZSE, Lloyd Corporate Capital Partner to Unlock Growth Finance for Zimbabwe’s SMEs Through ZEEX appeared first on The Zimbabwe Mail.

Zimbabwe’s 2026 Mid-Term Budget and Economic Review marks an important turning point in the country’s economic recovery. For the first time in over three decades, the economy is experiencing sustained single-digit inflation, exchange-rate stability, fiscal discipline, robust foreign currency earnings and positive GDP growth. These achievements represent a significant departure from the macroeconomic instability that characterised much of the past twenty-five years.

By the Economics Desk

Yet, as public policy scholars and development economists have consistently argued, macroeconomic stabilisation is the beginning, not the end, of economic transformation. Countries become upper-middle-income economies not simply because inflation is low or GDP is growing, but because they successfully transform the structure of production, improve productivity, diversify exports, deepen capital markets and build institutions capable of sustaining long-term investment.

The 2026 Mid-Term Review therefore presents two narratives simultaneously. The first is one of considerable macroeconomic progress. The second is the unfinished agenda of structural transformation.

The challenge for policymakers is to convert today’s macroeconomic stability into tomorrow’s productive economy.

Zimbabwe Has Finally Achieved Macroeconomic Stability

The most important policy achievement reflected in the Mid-Term Review is macroeconomic stabilisation.

Inflation averaged 4.2% during the first half of 2026, exchange-rate volatility has largely subsided, fiscal discipline has been maintained, and the current account remains in surplus. Government projects GDP growth of 5% this year following 8.3% growth in 2025.

These indicators matter because economic history demonstrates that no country has industrialised amid persistent macroeconomic instability.

Speaking to The Zimbabwe Mail, an economist working for a local bank argued that inflation introduces uncertainty that can distort investment decisions and weaken economic efficiency. Likewise, others we interviewed showed that stable macroeconomic expectations improve long-term investment behaviour by reducing uncertainty about future prices and returns.

For Zimbabwe, these achievements restore something the economy has lacked for decades: predictability.

Businesses can increasingly forecast costs, banks can price credit with greater confidence, and investors can evaluate projects over longer horizons. These are essential foundations for sustainable development.

As some development economists we spoke to have argued, sustained economic growth requires macroeconomic stability as a precondition for structural transformation, but stability alone does not generate development.

Growth Remains Resource-Led Rather Than Productivity-Led

The government expects agriculture to grow by 6.9%, manufacturing by 5.2%, and mining to remain one of the strongest contributors to GDP.

These sectors have driven Zimbabwe’s recent recovery. Agriculture, for example, has benefited from favourable rainfall and increased production.

Mining continues to benefit from high international gold prices and rapidly expanding lithium production. Manufacturing has responded positively to greater macroeconomic stability. However, economic theory distinguishes between resource-led growth and productivity-led growth.

Some economists argue that the structural transformation model suggests that countries become wealthy when labour gradually shifts from low-productivity activities into higher-productivity manufacturing and services.

Similarly, others have demonstrated that development requires structural changes in the composition of production rather than merely increasing output from existing sectors.

Zimbabwe has made progress in expanding production. The next challenge is increasing productivity.

Higher productivity, not simply higher production, is what ultimately raises wages, living standards and national income.

Mining Must Become an Industrial Ecosystem

Lithium exports increased by almost 230% during the first half of 2026. This represents one of the country’s most significant economic opportunities. The government’s beneficiation policy is beginning to shift exports away from raw mineral extraction towards higher-value processing.

This aligns with the thinking of Argentine economist Raúl Prebisch, whose dependency theory argued that developing economies remain trapped when they export raw commodities while importing manufactured products.

Yet beneficiation should not become the final destination. Successful industrial economies rarely stop at mineral processing.

Australia moved from mining towards mining technology. China moved from mineral processing into battery manufacturing. South Korea moved from steel production into automobiles, semiconductors and electronics.

Zimbabwe must similarly develop complete industrial value chains encompassing battery chemicals, battery manufacturing, electric vehicle components, advanced engineering and industrial research.

Minerals should become the foundation of industrialisation—not simply export earnings.

Manufacturing Must Become the Engine of Economic Complexity

Manufacturing growth of 5.2% reflects improving confidence. Nevertheless, Zimbabwe’s manufacturing sector still faces structural constraints.

Electricity shortages, logistics costs, access to long-term capital, transport inefficiencies and limited export competitiveness continue constraining industrial expansion.

An economist speaking to our reporter said that economic prosperity increasingly depends upon economic complexity, the ability to produce increasingly sophisticated products requiring advanced knowledge.

Countries do not become wealthy because they produce more goods. They become wealthy because they produce more complex goods.

Manufacturing policy should therefore increasingly focus on technological upgrading, automation, research and development, digital manufacturing and export competitiveness. The Industrial Development Fund represents an important beginning.

Its long-term success will depend upon whether it increases industrial productivity rather than merely expanding production capacity.

Rising Investment Reflects Improving Confidence

Foreign Direct Investment increased from US$597 million in 2024 to US$965 million in 2025.

Capital rarely moves into uncertain environments. This increase reflects growing confidence in Zimbabwe’s improving macroeconomic management. It is argued by some economists that institutions determine economic performance by reducing uncertainty. Stable rules, predictable policies and secure property rights encourage investment because they reduce transaction costs.

Zimbabwe’s improving investment environment suggests policy credibility is gradually strengthening. However, achieving Vision 2030 will require significantly higher investment levels.

Upper-middle-income economies typically attract substantial long-term investment into manufacturing, logistics, technology, renewable energy and digital infrastructure. Zimbabwe has begun attracting investment.

It must now broaden both its scale and sectoral diversity.

The Digital Economy Remains the Missing Growth Story

One notable weakness in the Mid-Term Review is the limited emphasis on digital transformation.

The global economy is entering an era where artificial intelligence, cloud computing, data infrastructure, fintech, robotics and digital public services increasingly determine national competitiveness.

In an interview, an economist who referred to the endogenous growth argument of transformed development economics argues that knowledge, not merely capital, is now the principal driver of long-term growth.

Zimbabwe’s next phase of development should therefore include sovereign cloud infrastructure, national digital identity systems, artificial intelligence readiness, digital skills development, cybersecurity capacity and government digital transformation.

Digital infrastructure should increasingly be regarded as economic infrastructure.

The Informal Economy Remains Zimbabwe’s Largest Structural Constraint

One of Zimbabwe’s greatest economic paradoxes is that macroeconomic stability is occurring alongside one of Africa’s largest informal economies.

Most employment remains outside the formal sector. This limits productivity, tax mobilisation, financial inclusion and access to long-term business finance.

Development economists increasingly argue that informality should not simply be regulated. It should be transformed.

Formalisation requires incentives rather than enforcement.

Digital payment systems, simplified taxation, SME financing, venture capital, business incubation and easier business registration should become central pillars of economic policy.

Without integrating informal enterprises into the formal economy, productivity growth will remain constrained.

Fiscal Discipline Must Be Preserved

The Mid-Term Review confirms Government’s continued commitment to fiscal discipline.

This is essential. Zimbabwe’s previous episodes of macroeconomic instability were largely driven by persistent fiscal deficits financed through monetary expansion. Public finance theory consistently demonstrates that sustainable growth requires credible fiscal institutions.

Maintaining budget discipline will therefore remain critical for preserving currency stability and investor confidence. The temptation to relax fiscal controls as revenues improve should be resisted.

Credibility, once lost, is difficult to rebuild.

Public Policy Recommendations

Zimbabwe should now transition from a macroeconomic stabilisation agenda to a structural transformation strategy centred on productivity, innovation and competitiveness. Fiscal discipline and low inflation must remain the anchors of macroeconomic policy, as they provide the confidence necessary for long-term investment.

Industrial policy should shift beyond beneficiation towards the development of complete manufacturing value chains in minerals, agriculture and pharmaceuticals. Special Economic Zones should evolve into innovation and industrial technology parks linked to universities and research institutions.

Government should accelerate investment in digital public infrastructure, including sovereign cloud computing, interoperable government databases, artificial intelligence capability, digital identity systems and nationwide broadband connectivity. These investments are increasingly as important as roads, railways and power stations.

The informal economy should be integrated into the formal sector through incentives rather than regulation alone. Simplified tax regimes, access to affordable finance, digital payment ecosystems and business development services would increase productivity while broadening the tax base.

Human capital policy should prioritise STEM education, vocational training, artificial intelligence, advanced manufacturing and entrepreneurship. Vision 2030 cannot be achieved without a workforce equipped for a knowledge-intensive economy.

Finally, institutional reforms should continue to strengthen policy predictability, regulatory certainty and the ease of doing business. Sustainable investment depends not only on macroeconomic performance but also on confidence in public institutions.

Conclusion

Zimbabwe’s 2026 Mid-Term Budget demonstrates that the country has made meaningful progress in restoring macroeconomic stability. Single-digit inflation, exchange-rate stability, fiscal discipline, expanding exports and rising investment are achievements that should not be underestimated. They represent the successful completion of the first phase of economic recovery.

The second phase will be more demanding. History shows that nations do not become prosperous simply because they stabilise their economies; they prosper because they transform them. Japan, South Korea, Singapore, China and, more recently, Vietnam all converted macroeconomic stability into industrialisation, technological innovation, export diversification and sustained productivity growth.

Zimbabwe now stands at a similar crossroads. The foundations for growth are stronger than they have been in decades, but the transition to an upper-middle-income economy will require a decisive shift from stabilisation to structural transformation. The policy imperative is no longer merely to maintain stability, but to build a more productive, innovative and globally competitive economy capable of generating inclusive and sustainable prosperity well beyond Vision 2030.

The post Zimbabwe’s 2026 Mid-Term Budget Review: Macroeconomic Stabilisation Without Structural Transformation? An Economic Assessment of Progress Towards Vision 2030 appeared first on The Zimbabwe Mail.

The Highway of Broken Promises: Death and Despair on the Karoi-Binga Road KAROI – The dust had barely settled on the latest tragedy before the familiar sound of sirens once again echoed through the rugged terrain of Mashonaland West. On a sweltering Wednesday afternoon, at the 16-kilometre peg of the notorious Karoi-Binga Road, a silver […]

The post 2 people die on the spot, 9 injured as kombi overturns in another bloody accident first appeared on My Zimbabwe News.

HARARE – Zimbabwe has significantly lowered regulatory barriers to private electricity generation following the promulgation of the Electricity (Licensing) (Amendment) Regulations, 2026 (No. 2) under Statutory Instruments 125 and 126 of 2026, a move expected to accelerate investment in captive power generation, renewable energy projects and industrial self-sufficiency.

The reforms, announced alongside the 2026 Mid-Term Budget Review, remove licensing requirements for commercial power plants with a generating capacity of up to 10 megawatts (MW), while also exempting companies generating electricity solely for their own consumption from obtaining generation licences.

Energy analysts say the changes represent one of the most significant regulatory reforms in Zimbabwe’s electricity sector in years and could unlock millions of dollars in private investment as businesses seek alternatives to an overstretched national grid.

Small Power Projects No Longer Require Generation Licences

Under the new regulations, investors developing commercial grid-connected or off-grid power plants with capacities of up to 10MW will no longer pay generation licence fees.

Developers are now required to pay only a US$20 licence application fee, dramatically reducing the upfront regulatory costs of establishing smaller electricity projects.

Previously, licensing fees for renewable energy projects varied by technology and capacity, with developers paying several thousand dollars before construction could begin. Small hydro projects, for example, previously attracted licence fees approaching US$7,000, while other renewable technologies also faced substantial regulatory charges.

The reforms are expected to improve project economics, particularly for independent power producers targeting commercial and industrial customers.

Mines, Farms and Factories Receive Major Relief

Perhaps the most significant reform applies to businesses generating electricity exclusively for their own operations.

Mining companies, manufacturing firms, commercial farms, shopping centres, hospitals and universities installing captive power plants will no longer require generation licences regardless of the technology employed.

Instead, investors will simply register their projects with the Zimbabwe Energy Regulatory Authority (ZERA) before construction begins and notify the regulator once the facilities become operational.

Industry observers say the simplified registration process could substantially reduce project approval times while lowering compliance costs for businesses increasingly investing in energy security.

Zimbabwe’s mining sector, which has become one of the country’s largest private investors in solar power and thermal generation, is expected to be among the biggest beneficiaries.

Large Projects Continue to Face Licensing Requirements

The deregulation does not extend to larger commercial power stations.

Projects exceeding 10MW will continue to require full generation licences, with fees determined according to generating technology and installed capacity.

Under the amended regulations, licence charges remain technology-specific for larger renewable energy projects, reflecting differences in generation efficiency and capacity factors.

The approach preserves regulatory oversight of utility-scale generation while encouraging faster investment in smaller distributed energy projects.

Strengthening Zimbabwe’s Energy Transition

The reforms come as Zimbabwe continues pursuing greater private-sector participation in electricity generation to address persistent power shortages and support industrial growth.

Electricity demand has continued rising as mining, manufacturing and agriculture expand production, placing increasing pressure on the national grid.

Government has identified independent power producers (IPPs), captive generation and renewable energy as essential components of its long-term energy strategy.

By lowering regulatory costs, policymakers hope to encourage businesses to invest directly in their own energy infrastructure while reducing dependence on public electricity supplies.

Business Community Welcomes the Reforms

Energy economist Dr. Gift Maringwa said the regulatory changes send an important signal that government is beginning to remove non-financial barriers to private infrastructure investment.

“For many investors, licensing costs were never the largest expense, but they symbolised unnecessary regulatory friction. Simplifying approvals improves the ease of doing business and makes smaller projects commercially more attractive, particularly for manufacturers and mining companies that require reliable electricity,” he said.

Zimbabwe National Chamber of Commerce chief executive Christopher Mugaga said the reforms should improve business confidence, particularly among companies considering investments in renewable energy.

“Reliable electricity has become a competitive advantage. Many businesses have delayed expansion because of power uncertainty. Reducing regulatory costs and simplifying approvals lowers investment risk and should encourage more companies to invest in captive generation,” Mugaga said.

An independent renewable energy consultant said the reforms reflect an international shift towards decentralised electricity generation.

“Around the world, governments are encouraging distributed energy systems rather than relying solely on centralised generation. Zimbabwe is moving in that direction by making it easier for businesses to become energy producers rather than simply electricity consumers,” the consultant said.

Lessons from Regional Markets

Zimbabwe’s reforms mirror policy changes introduced across Africa as governments seek to mobilise private capital into electricity generation.

South Africa has progressively relaxed licensing requirements for embedded generation, triggering billions of rand in private investment from mining houses, manufacturers and commercial property developers seeking energy independence.

Nigeria has similarly expanded opportunities for decentralised electricity generation, while Kenya has encouraged greater participation by independent power producers to diversify electricity supply.

Across these markets, regulatory simplification has become an important tool for accelerating investment without increasing public expenditure.

Investment Opportunities Expected to Expand

Industry analysts believe the reforms could stimulate investment across multiple sectors.

Mining companies are expected to accelerate solar and hybrid power projects to reduce diesel costs and improve operational reliability. Commercial farmers may increasingly install solar-powered irrigation systems, while manufacturers are likely to expand captive generation to reduce production interruptions.

Property developers, industrial parks and commercial real estate operators may also find smaller embedded generation projects more financially attractive following the removal of licensing fees.

Renewable energy developers are expected to benefit from a larger pipeline of projects as regulatory compliance costs decline.

A Positive Signal for Investors

The post-budget regulatory reforms reinforce Zimbabwe’s broader objective of attracting greater private investment into strategic infrastructure while reducing administrative barriers to doing business.

Although larger utility-scale projects will continue to require formal licensing and regulatory oversight, the removal of licensing requirements for projects below 10MW represents a significant shift in policy.

For businesses grappling with energy security, rising operating costs and expanding electricity demand, the reforms could substantially improve the commercial case for investing in captive power generation.

If complemented by faster grid connection approvals, predictable electricity market rules and continued investment in transmission infrastructure, the new regulations have the potential to accelerate Zimbabwe’s transition towards a more decentralised, resilient and investment-driven electricity sector.

The post Zimbabwe Cuts Licensing Costs for Small Power Plants in Major Boost to Private Electricity Investment appeared first on The Zimbabwe Mail.

Harare – The Zimbabwean government has declared an all-out war on illegal land sales, warning that traditional leaders and land barons found complicit in the illicit parcelling out of communal and State land will face immediate arrest, prosecution, and removal from office. This stern directive, spearheaded by the Ministry of Local Government and Public Works, […]

The post Sabhuku Deals End in Tears: Government Issues Strong Directive and Takes Decisive Action as President Mnangagwa Breathes Fire first appeared on My Zimbabwe News.