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Sustainability takes root in Zimbabwe’s financial sector: What’s in for Insurers
Staff Writer
HARARE: Zimbabwe’s financial sector is making steady progress towards embedding sustainability into mainstream banking and financial services, with the Reserve Bank of Zimbabwe (RBZ) moving to strengthen oversight and adoption of sustainable banking practices.
Presenting the 2026 Mid-Term Monetary Policy Review, RBZ Governor Dr John Mushayavanhu said there had been notable progress in the adoption of sustainable banking practices, as financial institutions increasingly integrate environmental, social and governance (ESG) considerations into their operations.
The development is significant for the insurance industry, which is closely linked to the banking sector through investment, risk management and the financing of economic activity.
According to Dr Mushayavanhu, the central bank continues to provide supervisory guidance to institutions participating in the Sustainability Standards and Certification Initiative (SSCI), a framework aimed at mainstreaming sustainability across Zimbabwe’s financial sector.
As at June 30, 2026, 19 institutions were participating in the initiative, comprising the RBZ, 13 banking institutions, two development financial institutions, two deposit-taking microfinance institutions and one bank holding company.
Two banking institutions have so far received SSCI certification and are implementing activities aligned with the sustainability standards.
The RBZ itself has completed the SSCI requirements and is expected to receive certification from the European Organisation for Sustainable Development (EOSD) at the end of August.
Dr Mushayavanhu said the certification would provide an important foundation for driving sustainability across Zimbabwe’s financial sector.
The push towards sustainability mainstreaming reflects a broader shift in financial markets, where environmental and social risks are increasingly being treated as financial risks rather than issues confined to corporate social responsibility.
For insurers, this means sustainability considerations can influence how companies assess risks, price policies, manage investments and determine their exposure to climate-related events and other emerging risks.
Climate change, for example, is increasing the frequency and severity of some weather-related risks, placing greater pressure on insurers to strengthen risk modelling, underwriting practices and claims management.
At the same time, insurers are significant institutional investors, meaning that the sustainability practices of companies and projects in which they invest can have a direct bearing on long-term portfolio performance.
Sustainability mainstreaming therefore seeks to move ESG considerations from peripheral corporate initiatives into everyday decision-making, including governance, lending, investment, risk management and product development.
The RBZ’s participation in the SSCI is particularly important because certification of the regulator could provide an institutional anchor for sustainability standards across the financial system.
For Zimbabwe’s insurance sector, greater adoption of sustainability standards could also encourage the development of products that respond to emerging risks, including climate-related risks, while promoting responsible investment and stronger corporate governance.
The development comes as Zimbabwe seeks to deepen financial inclusion and strengthen the resilience of its financial system under more stable macroeconomic conditions.
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Insurance, pension funds face sweeping ESG overhaul as IPEC tightens regulation
Insurance, pension funds face sweeping ESG overhaul as IPEC tightens regulation
Staff Writer
HARARE – Zimbabwe’s insurance companies and pension funds are set for their biggest operational and investment shake-up in years after the Insurance and Pensions Commission (IPEC) introduced comprehensive sustainability guidelines requiring firms to integrate environmental, social and governance (ESG) principles into every aspect of their business.
The new framework requires insurers and pension funds to embed sustainability into underwriting, investment decisions, corporate governance, product development, risk management and reporting, signalling a major shift in how the country’s institutional investors will conduct business.
The guidelines align Zimbabwe’s insurance and pension industry with internationally recognised frameworks, including the Principles for Sustainable Insurance (PSI), Principles for Responsible Investment (PRI) and the International Sustainability Standards Board’s IFRS S1 and IFRS S2 sustainability disclosure standards.
According to IPEC, the reforms are designed to move the sector beyond treating sustainability as a compliance exercise.
“The insurance and pension industry has a unique dual role as both risk carriers and institutional investors, positioning them to drive positive change,” the Commission said in the guidance document.
It said sustainability was expected to transition “from voluntary good practice to embedded business strategy,” marking a decisive shift in regulatory expectations.
The reforms require insurers to assess climate-related risks when underwriting policies by considering issues such as flood exposure, climate vulnerability, water availability and environmental risks. Companies are also encouraged to develop innovative insurance products that support renewable energy, climate-smart agriculture and disaster resilience.
For pension funds and insurance investment portfolios, ESG considerations will now become part of investment analysis, requiring institutions to evaluate governance standards, environmental risks and social factors before committing capital.
The framework also encourages greater investment in sustainable sectors, including renewable energy, green infrastructure, sustainable agriculture and financial inclusion projects while discouraging investment in businesses with poor environmental or labour practices.
Beyond investment decisions, IPEC wants institutional investors to become more active shareholders by engaging portfolio companies on governance and sustainability issues, demanding stronger ESG disclosures and promoting responsible corporate conduct through shareholder voting.
The Commission said climate change, changing stakeholder expectations and evolving global regulations meant the industry could no longer afford to delay reforms.
“The convergence of global climate change, evolving stakeholder expectations, regulatory developments and the recognition of sustainability as a source of competitive advantage creates an imperative for the Zimbabwe insurance and pension industry to transform,” the guidance states.
To facilitate implementation, IPEC has proposed a phased approach beginning with governance reforms, ESG assessments and staff training before progressing to full integration into underwriting, investment management and sustainability reporting over the next several years.
The new reporting framework will require insurers and pension funds to publish annual sustainability disclosures aligned with IFRS sustainability standards, including information on governance structures, climate risks, greenhouse gas emissions, financed emissions and sustainability targets. Reports must be publicly available.
IPEC believes the reforms will strengthen the industry’s resilience while positioning insurers and pension funds to support Zimbabwe’s sustainable development agenda.
“The imperative is clear — the insurance and pension industry must transform to remain relevant, resilient and responsible in the face of profound environmental and social changes,” the Commission said.
It added that embedding sustainability into business operations would enable institutions to “better manage emerging risks,” “identify and capture new business opportunities,” enhance long-term financial performance and contribute to Zimbabwe’s climate resilience and sustainable development objectives.
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ZEEX launched to unlock capital for Zimbabwe’s SMEs
Staff Writer
The Zimbabwe Stock Exchange (ZSE) has officially launched the Zimbabwe Entrepreneurship Exchange (ZEEX), a dedicated platform designed to expand access to capital for small and medium enterprises (SMEs), in a move expected to transform financing opportunities for one of the country’s most important economic sectors.
The exchange was officially launched in Bulawayo last Friday following regulatory approval by the Securities and Exchange Commission of Zimbabwe (SECZim) in June this year, allowing the ZSE to operationalise its SME exchange under the ZEEX brand.
ZEEX is a technology-driven entrepreneurship-focused exchange that seeks to bridge the long-standing funding gap facing SMEs by providing multiple avenues for raising capital and improving access to finance.
The platform comprises four key components: ZEEX Private Markets, which enables entrepreneurs to raise capital through structured private placements before listing; ZEEX Public Markets, which facilitates public capital raising, listing and secondary market trading; Invoice Discounting, a working capital solution that enables businesses to convert unpaid invoices into immediate cash; and the Bondholding Company (BHC), which provides a collateral structure that helps smaller enterprises access debt financing on more favourable terms.
Speaking during the launch, Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube said ZEEX represented more than the introduction of another capital market platform, describing it as a strategic intervention aimed at addressing the financing challenges that have historically constrained SME growth.
He said the exchange was designed to correct a long-standing imbalance where businesses that form the backbone of Zimbabwe’s economy had limited access to capital markets.
“The establishment of ZEEX gives these businesses the tools to formalise, to scale, and to access the kind of patient capital that has historically been reserved for large corporates. ZEEX is a direct, practical expression of the policy intent set out in our National Development Strategy (NDS 2),” he said.
Minister of Women Affairs, Community, Small and Medium Enterprise Development Senator Monica Mutsvangwa said the launch marked a significant milestone for the SME sector, noting that the ZSE had transformed years of engagement, capacity building and collaboration into a practical financing solution for entrepreneurs.
She said SMEs make an immense contribution to Zimbabwe’s economy and the new platform would broaden their participation in the country’s capital markets.
Bulawayo Minister of State for Provincial Affairs and Devolution Judith Ncube welcomed the decision to base the Zimbabwe Entrepreneurship Exchange in the city, saying Bulawayo has a rich financial history dating back to one of the country’s earliest stock exchanges established around 1896.
She said the launch reaffirmed Bulawayo’s historical position as a centre for finance and enterprise.
The ZSE said stakeholders can immediately access the ZEEX platform together with the complementary InvoiceX platform, which supports invoice discounting services for businesses seeking improved liquidity.
The exchange also acknowledged the support received from the Ministry of Finance, Economic Development and Investment Promotion, the Ministry of Women Affairs, Community, Small and Medium Enterprise Development, SECZim and other market participants in bringing the initiative to fruition.
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CABS commits US$20 Million to Mutapa Syndicated Fund, reaffirms support for key economic sectors
Staff Writer
CABS committed US$20 million to the US$125 million syndicated financing facility for Mutapa Gold Resources’ Shamva Hill project, reaffirming its commitment to supporting strategic sectors of the economy through long-term financing partnerships.
Speaking at the signing ceremony last Thursday, CABS Deputy Managing Director Mr Cecil Ndoro said the bank remained committed to working closely with the mining sector and other productive industries as Zimbabwe seeks to accelerate economic growth through increased investment.
The landmark syndicated facility, arranged by a consortium of local financial institutions, will finance the development of the Shamva Hill project while also providing additional capital for the expansion of Jena Mine.
Mr Ndoro congratulated Mutapa Gold Resources and the participating financial institutions for successfully concluding one of the country’s largest locally arranged mining finance transactions.
“Let me start by congratulating Mutapa Gold’s team and the entire Mutapa Development Fund on this very momentous occasion,” said Mr Ndoro.
“I also want to congratulate my fellow bankers for the collaboration that has made this particular transaction possible. Looking ahead, we will continue to be partners.”
He said the transaction reflected the growing capacity of Zimbabwe’s financial sector to mobilise capital for transformative investments capable of driving national economic development.
“As CABS, please allow me to take this opportunity to reaffirm our commitment. We are working very closely with the mining sector in Zimbabwe, with the gold sector in Zimbabwe, and last but not least, we are partners in contributing to the success of this project,” Mr Ndoro said.
The syndicated facility is one of the largest ever arranged exclusively by local banks for a mining project and exceeded Mutapa Gold’s initial funding target of US$75 million by US$50 million, underscoring growing confidence by domestic financial institutions in financing large-scale mining investments.
The financing package is led by CBZ Bank with a US$25 million commitment, alongside Ecobank (US$25 million), CABS (US$20 million), NMB Bank (US$15 million), ZB Bank (US$15 million) and FBC Bank (US$10 million), with additional participating institutions expected to complete the balance of the syndication.
The additional funding will be directed towards expanding operations at Jena Mine, complementing investment in the Shamva Hill project as Mutapa Gold pursues an ambitious strategy to increase production and strengthen its position as Zimbabwe’s largest gold producer.
Speaking at the ceremony, Shamva Mine manager Engineer Gift Mapakame described the transaction as more than the financing of a single mining project.
“This is a demonstration of what can be achieved when capital, technical expertise, institutional confidence and a shared vision come together,” he said.
Eng Mapakame said the deal marked a turning point for Zimbabwe’s financial sector, demonstrating that local banks now possess both the confidence and sophistication to finance capital-intensive mining projects that were previously considered beyond their reach.
He said the Shamva Hill project had been under development for five years and would significantly increase production at Shamva Mine from approximately 0.8 tonnes to 2.4 tonnes of gold annually once commissioned in 2028.
Mutapa Gold Resources chief executive Mr Patrick Maseva-Shayawabaya said the response from local banks had surpassed expectations.
“When we went into the market, we were looking for US$75 million. The financial services industry in Zimbabwe surprised us. We have raised US$125 million,” he said.
Beyond increasing gold output, the project is expected to generate wide-ranging economic benefits through investments in water and electricity infrastructure, healthcare and education facilities, while creating approximately 1,800 jobs during construction and operational phases.
The transaction is also expected to strengthen collaboration between the banking sector and the mining industry, reinforcing confidence in locally mobilised capital as a catalyst for industrial expansion and Zimbabwe’s broader economic transformation.
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Old Mutual plans to list a US$46,2m Development REIT on VFEX
Staff Writer
Old Mutual is preparing to launch a US$46,2 million Development Real Estate Investment Trust (REIT) on the Victoria Falls Stock Exchange (VFEX), expanding the range of long-term investment assets available to institutional investors.
The US dollar-denominated REIT, sponsored by Old Mutual Life Assurance Company and managed by Old Mutual Investment Group, is expected to open for subscriptions in the third quarter of 2026 before listing on the VFEX later in the year.
The investment vehicle will initially finance The Grange Lifestyle Estate, a 47-hectare mixed-use development in Harare’s northern suburbs, before broadening its portfolio to include other commercial real estate projects across Zimbabwe.
For life insurers, pension funds and other institutional investors, development-focused REITs present an opportunity to deploy long-term capital into assets capable of generating sustainable income while benefiting from capital appreciation during construction.
Unlike traditional REITs, which typically acquire completed income-producing properties, the Development REIT allows investors to participate from the development stage.
This gives investors exposure to value creation throughout the construction process before assets begin generating recurring rental income.
The structure is increasingly viewed as an important investment option for institutions seeking hard-currency assets that align with long-term liabilities, particularly in an environment where demand continues to grow for diversified investment products capable of preserving value and generating stable returns.
According to the investor prospectus seen by Insurance24, the inaugural project is supported by clean freehold title, approved subdivision plans and all the required development permits, reducing many of the execution risks commonly associated with large-scale property developments.
The Grange Lifestyle Estate has been designed as an integrated mixed-use precinct combining retail, healthcare, office and premium residential developments.
The diversified tenant mix is expected to create multiple rental income streams while reducing concentration risk within the portfolio.
The three-phase development carries an estimated cost of US$46,2 million, excluding VAT, and is scheduled for completion over approximately three years. Once fully operational, it is projected to generate a gross rental yield of about 7,1 percent.
The retail component, valued at US$28,8 million, represents the largest investment within the estate.
It will provide approximately 22 536 square metres of gross lettable area, incorporating a supermarket, premium motor vehicle showroom, restaurants, entertainment facilities, line shops and a modern gymnasium.
Old Mutual says anchor tenants for Phase 1A have already been secured, while negotiations with prospective tenants for Phase 1B are at an advanced stage, strengthening the project’s commercial outlook before completion.
The estate will also include a US$4,8 million specialist medical clinic offering approximately 3 400 square metres of healthcare space for specialist practitioners.
Healthcare assets are widely regarded by institutional investors as resilient investments because demand for medical services remains relatively stable throughout economic cycles, supporting dependable long-term rental income.
A third phase will deliver a Grade A office park valued at approximately US$12,6 million, providing 8 685 square metres of premium office accommodation.
Construction will be phased to align with market demand and limit vacancy risk, while additional land within the estate provides capacity for future expansion without further acquisition costs.
Beyond its flagship development, the REIT has been structured with a broader investment pipeline aimed at enhancing long-term portfolio growth.
Among the projects under consideration is a 130-room internationally branded four-star hotel in Victoria Falls. The property is expected to be owned by the REIT and leased to an independent hotel operator, allowing investors to benefit from tourism-related income while limiting operational exposure.
Old Mutual is also evaluating a mixed-use commercial development in Borrowdale on a consolidated 7,4-hectare site.
The proposed project is expected to include Grade A office space, an internationally branded hotel, serviced apartments and convenience retail facilities, reflecting continued demand for premium commercial developments in Harare’s northern suburbs.
The proposed REIT underscores the increasingly important role institutional investors, particularly insurers and pension funds, continue to play in mobilising long-term capital for productive infrastructure and property development.
As Zimbabwe’s capital markets broaden the range of investable assets, development-focused REITs are expected to become an increasingly important vehicle for matching long-term liabilities with income-generating real assets while supporting economic development.
Monday, Aug 24, 2026
