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Zimbabwe is potentially missing out on billions of dollars in global financing and investment because it has failed to properly consolidate and communicate its Environmental, Social, and Governance (ESG) efforts, Deputy Finance and Investment Promotion Minister Kudakwashe Mnangagwa has warned.
By Ryan Chigoche
Environmental, Social, and Governance (ESG) principles have rapidly become the global benchmark for sustainable business practices.
Given the nature of its operations, Zimbabwe’s mining sector is particularly central to this shift, with investors placing increasing emphasis on responsible and transparent business conduct.
This growing global emphasis on ESG has created a significant barrier for countries and companies unable to meet these standards.
International investors now require clear evidence of environmental stewardship, social responsibility, and sound governance before committing funds—often excluding those without credible reporting frameworks from major financing opportunities.
Speaking at an ESG compliance workshop held in Harare today, Hon. Mnangagwa highlighted that Zimbabwe already has multiple agencies and commissions tasked with environmental protection and social advocacy.
However, he noted a critical gap remains: the lack of a unified reporting framework that aligns with international standards.
“I think it’s very important that that element really comes out—that look, Zimbabwe is missing out on, you know, so much billions because we are unable to just put everything that we’re doing in a report,” he said.
“We do care about the environment, we have institutions in place, we have mechanisms to make sure that companies are compliant. What just hasn’t been there is… the fluid needs to make it competitive and maybe aligned with international standards,” Mnangagwa added.
The Deputy Minister went on to reaffirm the government’s commitment to a private sector-led economy, emphasising that ESG compliance will be key to unlocking international capital for local businesses.
“As government, His Excellency has been very clear that we want a private sector economy, which means that as government, we need to come up with policies and initiatives that catalyse the growth of the private sector. If ESG compliance and reporting is going to be a gateway for private sector entities and companies to access capital and financing in a more competitive manner, then we need to come up with the right policies that tie up some of the actions that are put in place,” he added.
Despite having institutions such as the Environmental Management Agency (EMA) and various commissions enforcing compliance and promoting advocacy, the lack of a consolidated, internationally recognised ESG reporting system continues to limit Zimbabwean companies’ ability to attract global capital.
Discussions at the workshop also focused on whether the main cost burden lies in implementing ESG requirements themselves or in compiling the reports required to meet international audit standards.
Clarifying this distinction will help the government identify where incentives should be targeted to encourage broader compliance.
Stakeholders were further urged to explore collaborative strategies, such as pooling resources through industry associations to acquire ESG reporting tools at the sector level.
Such collective approaches could reduce costs and standardise reporting across sectors, enhancing Zimbabwe’s competitiveness on the global stage.
Experts are of the view that strengthening ESG reporting is a critical step towards unlocking new investment opportunities and enabling Zimbabwe to present a compelling, credible story to international financiers.
