DALIAN, China – Zimbabwe’s Finance Minister, Professor Mthuli Ncube, has urged a fundamental rethink of global development financing, calling for a shift away from traditional debt and aid dependency toward domestic resource mobilisation and innovative financing instruments, as developing economies come under increasing fiscal pressure.
Speaking at the World Economic Forum’s 17th Annual Meeting in Dalian during a session themed “Scenarios for Financing Growth”, Ncube said the global economic environment is becoming increasingly unstable, shaped by geopolitical tensions, tighter financial conditions, fragmented trade systems and rapid technological change.
According to remarks reported by The Zimbabwe Mail, the minister warned that many developing countries are now facing shrinking fiscal space, rising debt-servicing obligations and limited access to concessional financing, a situation he said is constraining long-term public investment.
Debt pressures crowd out development spending
Ncube argued that the growing burden of sovereign debt is reducing governments’ ability to fund infrastructure, social services and industrial development.
“The traditional reliance on public debt and aid is no longer sufficient to sustain growth,” he said, adding that domestic resource mobilisation must now become the central pillar of development financing strategies.
He emphasised that reliance on external borrowing has become increasingly unsustainable for many emerging economies, particularly as global interest rates remain elevated and capital flows become more selective.
Zimbabwe pivots toward private capital and reform agenda
Outlining Zimbabwe’s financing strategy, the minister said the country is focusing on attracting private investment through improved business conditions, expanded public-private partnerships and deeper financial sector reforms.
He also highlighted the use of alternative financing mechanisms such as debt-for-development swaps, alongside efforts to mobilise diaspora remittances, which he said now exceed US$3 billion annually and represent a significant source of external inflows.
Ncube said Zimbabwe is also implementing structural reforms aimed at improving the investment climate, including targeted tax incentives, customs duty exemptions on critical industrial inputs and the expansion of special economic zones designed to support industrialisation and export growth.
Monetary reforms to support credit expansion
On monetary policy, the Finance Minister cited measures by the Reserve Bank of Zimbabwe to reduce the cost of financial intermediation and expand access to credit for productive sectors.
He said targeted financing facilities are being deployed to support manufacturing, agriculture and small and medium enterprises (SMEs), which remain central to the country’s growth strategy.
According to Ncube, these interventions are intended to improve liquidity conditions, enhance productivity and stabilise macroeconomic fundamentals over the medium term.
“Zimbabwe is open for business”
Reaffirming the country’s investment posture, Ncube said the ongoing reforms are designed to strengthen economic stability and position Zimbabwe for sustained growth.
“Zimbabwe is open for business, reforming and ready for investment,” he said.
The remarks come as policymakers across the developing world grapple with rising debt vulnerabilities and declining access to affordable external financing, prompting renewed debate on alternative models of development finance.
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