HARARE – Zimbabwe is accelerating reforms to transform its capital markets into a modern financing platform capable of mobilising long-term domestic and foreign investment, as Government shifts its focus from traditional bank lending towards more diversified sources of economic financing.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube says deeper, broader and technology-driven capital markets will be critical in financing infrastructure, industrialisation and private sector growth under Vision 2030 and the National Development Strategy 2 (NDS2).
Speaking at the Securities and Exchange Commission of Zimbabwe (SecZim) Annual General Meeting in Harare, the minister, whose speech was delivered by Finance Ministry Director Mr Kudakwashe Zata, said Government was committed to creating an enabling environment through legislative reforms, stronger regulation and digital innovation.
“Government remains committed to strengthening the legislative framework, policy alignment and institutional support required to build a modern and globally competitive capital market,” Prof Ncube said.
The Government believes Zimbabwe’s future economic expansion cannot rely solely on commercial banks and conventional debt financing.
Instead, authorities are seeking to develop a diversified financial ecosystem that includes equity markets, corporate and infrastructure bonds, real estate investment trusts (REITs), exchange-traded funds (ETFs), derivatives, short-term securities and sustainable finance instruments capable of attracting pension funds, insurance companies, retail investors and international capital.
Officials say well-functioning capital markets provide businesses with access to long-term financing while reducing dependence on expensive short-term borrowing.
“A vibrant debt market, dynamic equity market, innovative investment vehicles, strong institutional investors and wider participation by ordinary Zimbabweans and the diaspora are essential to unlocking sustainable economic growth,” the minister said.
Digital Assets Enter Zimbabwe’s Regulatory Framework
One of the most significant reforms has been the amendment of the Securities and Exchange Commission of Zimbabwe Act through Finance Act No. 7 of 2025, which formally brings digital assets and digital asset service providers under regulatory oversight.
The legislation lays the foundation for the regulation of tokenised real-world assets, blockchain-based financial products and smart contract-enabled investment instruments, positioning Zimbabwe among a growing number of countries adapting financial regulations to emerging technologies.
Prof Ncube urged regulators to move swiftly in finalising a comprehensive digital assets framework that balances innovation with investor protection.
He also called on SecZim to modernise its supervisory approach by embracing real-time, technology-driven market surveillance instead of relying on traditional manual compliance systems.
Building a Regional Financial Hub
Government also reaffirmed its ambition of positioning the Victoria Falls Stock Exchange (VFEX) Financial Services Centre as a regional offshore financial hub capable of attracting international capital through strong governance, transparency and investor confidence.
The VFEX has increasingly become central to Zimbabwe’s strategy of attracting foreign portfolio investment while offering companies access to foreign currency-denominated capital.
At the same time, regulators are seeking to ensure that the Zimbabwe Stock Exchange (ZSE) remains competitive following the migration of several listed companies to the VFEX.
SecZim Chairman Mr Dakshesh Patel said Zimbabwe’s improving macroeconomic environment provides an opportunity to rebuild investor confidence after years of economic instability.
He noted that declining inflation, improving monetary stability and increased investment in key productive sectors such as mining and agriculture were creating favourable conditions for capital market expansion.
“We are beginning to see the foundations necessary for long-term capital market development. Economic stability is improving and that creates confidence for both domestic and international investors,” Patel said.
He argued that Zimbabwe should prioritise developing a sophisticated debt capital market capable of financing major infrastructure projects rather than relying almost exclusively on equity financing.
Successful global financial centres, he said, combine vibrant stock markets with deep corporate bond markets and project finance structures that channel long-term savings into productive investment.
Trading Activity Rebounds
SecZim Acting Chief Executive Mr Tichaona Mushambadope said reforms introduced during 2025 had already begun producing positive results.
He attributed increased trading activity on the Zimbabwe Stock Exchange partly to Government’s decision to reduce capital gains withholding tax from 2 percent to 1 percent, a move designed to improve market liquidity and encourage investor participation.
The Commission is also expanding Zimbabwe’s range of investment products beyond traditional equities as part of a broader modernisation strategy.
Emerging focus areas include tokenised securities, renewable energy financing, carbon credit markets and sustainable finance products that align with global environmental, social and governance (ESG) investment trends.
“Our objective is to modernise Zimbabwe’s capital markets by expanding available investment products while creating a regulatory environment that supports innovation and protects investors,” Mushambadope said.
Beyond large corporates, regulators are also prioritising the development of the Small and Medium Enterprises (SME) Exchange, which is expected to lower listing requirements and enable growing businesses to raise capital from public markets.
Authorities believe the SME platform could improve access to finance for emerging businesses while broadening participation in Zimbabwe’s formal financial sector.
Investor education also remains a key pillar of the Commission’s strategy, with officials arguing that improving financial literacy is essential to increasing public confidence and safeguarding investors.
The latest reforms signal Government’s determination to deepen Zimbabwe’s financial markets as part of a broader strategy to mobilise long-term investment for economic transformation.
As Zimbabwe seeks to bridge its infrastructure financing gap, expand industrial capacity and attract both domestic and foreign capital, policymakers increasingly view efficient capital markets—not commercial banks alone—as a cornerstone of sustainable economic development.
If successfully implemented, the reforms could position Zimbabwe’s capital markets to play a far greater role in financing growth, supporting innovation and strengthening the country’s ambitions of becoming an upper-middle-income economy by 2030.
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