Kuda Gumbo-Herald Correspondent
Zimbabwe needs to explore innovative financing tools, including gender bonds, to accelerate progress in closing gender gaps.
Presently, trends indicate that achieving Sustainable Development Goal 5, which focuses on gender equality and the empowerment of women and girls, may take far longer than envisaged.
This was said by United Nations Assistant Secretary-General and UN Women Deputy Executive Director, Dr Nyaradzayi Gumbonzvanda, at a press conference yesterday.
“Innovative financing tools such as gender bonds offer an important opportunity to accelerate progress in closing gender gaps and advancing women’s economic empowerment, especially here in Zimbabwe,” she said.
“Global data shows that while progress is being made, the pace remains slow, and without scaled-up investment, it may take much longer than originally envisaged to achieve Sustainable Development Goal 5.”
Gender bonds are financial instruments that raise capital specifically for projects advancing gender equality and women’s economic empowerment, funding initiatives such as women-led businesses, education and equal pay. They are growing in popularity as a tool for sustainable development aimed at closing gender gaps.
Issued by governments, banks and corporations, these bonds use proceeds for eligible gender-focused activities tracked by key performance indicators and guided by international standards from organisations such as the International Finance Corporation (IFC) and UN Women.
Dr Gumbonzvanda added that with a strong global economic equity portfolio, there is increasing focus on blended financing that combines private sector investment, grants and other financial instruments to help manage risk.
She cautioned against relying solely on borrowing, particularly without guarantees, as this can unintentionally expose women entrepreneurs to risks.
“They may end up working only to repay loans without rebuilding their capital or addressing unpaid care and social responsibilities,” she explained.
Highlighting the potential for gender bonds in Zimbabwe, she noted that some countries have already begun implementing them through their stock exchanges.
“We have seen this with countries like Luxembourg, and we are also looking at the Johannesburg Stock Exchange, which has begun issuing gender bonds,” she said.
“This is something that stock exchanges such as the Zimbabwe Stock Exchange or Victoria Falls Stock Exchange could consider. Gender bonds allow a percentage of proceeds from listed products to be reinvested into interventions that advance women’s economic empowerment and employment.”
Dr Gumbonzvanda also said other instruments, including social impact bonds and green bonds, have been successfully used in different countries.
These could be adapted to address climate financing as an economic development issue rather than focusing solely on mitigation.
“There are opportunities and tools available, whether through private investment or blended financing,” she said. “But at the end of the day, increasing domestic resources to invest in gender equality and women’s employment within our communities remains essential.”
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