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Zimbabwe’s Ministry of Finance and Investment Promotion is currently developing a comprehensive Financial Sector Policy, and Deputy Minister David Kudakwashe Mnangagwa has urged the private sector to actively participate in shaping it, particularly with regard to Environmental, Social, and Governance (ESG) standards. Mining Zimbabwe can report.
By Rudairo Mapuranga
Speaking at the Enviroedge Consulting and Seall Intelligence ESG Reporting Workshop held at the Management Training Bureau (MTB) in Msasa, Harare, under the theme “Advancing ESG Reporting in Zimbabwe: Challenges, Opportunities and the Road Ahead,” Mnangagwa emphasised the need to integrate Zimbabwe’s existing ESG practices into a globally aligned framework that can attract sustainable investment and financial incentives.
“Right now, government, particularly the Ministry of Finance, is developing the financial sector policy. It’s an opportunity for all these ESG aspects to be addressed in a more substantive manner,” he said.
“The private sector needs to be the biggest lobby to make sure the policy is in place,” he added, stressing the importance of bridging the gap between government and business.
Local Standards, Global Access
Mnangagwa argued that Zimbabwe and the wider African continent already have community-rooted approaches to responsible and sustainable practices. However, he noted that these must now be translated into formal policy and reporting structures that align with global ESG frameworks.
“It’s not a matter of just playing to the gallery. We are already doing something, and if there are dividends to be gotten from this, we must organise ourselves as the private sector and government so we can access the available capital.”
Zimbabwean firms seeking capital from global markets are increasingly under pressure to demonstrate ESG compliance, not just in their operations but also through credible, audited reporting. According to Mnangagwa, aligning local efforts with global ESG metrics will not only attract green finance but also reduce the government’s social burden by leveraging corporate social investment.
Incentives and Tax Relief
The Deputy Minister also raised the question of incentivising ESG compliance, suggesting that firms investing in social outcomes should be rewarded through possible tax relief.
“If our industry is ESG compliant, this is a social dividend that the government is supposed to be providing financing for anyway. That’s going to give us relief of 1% of our taxes… but it has to be connected to something,” he explained.
Mnangagwa encouraged the business community to document and present practical models showing how ESG compliance contributes to national development goals, particularly in healthcare, environmental rehabilitation, and community services.
“It needs to be on paper. There are always conflicting needs government wants to collect as much tax as it can for social obligations, but if the private sector is coming in to carry that burden, there needs to be a translation,” he said.
Compliance Must Be Meaningful
Mnangagwa warned against token compliance and called for the creation of a robust ESG ecosystem where government agencies, local policies, and global standards all work in sync to support businesses and create investor confidence.
“When the adjudicators of the ticked boxes come to Zimbabwe, they must have confidence that our policy is being implemented and enforced well, and that your reports actually mean something.”
He also acknowledged that the cost of compliance can be high, not just in fees or systems, but in manpower and operational restructuring. However, he encouraged the private sector to frame ESG not as a burden but as an opportunity to share development responsibilities with the state, particularly in areas where government is overstretched.
Let’s Co-create, Not Dictate
“If you leave it to government without consultation with the private sector, we can come up with a Statutory Instrument tomorrow… but will it be material? That’s why we are here.”
