Online Reporter
Michael Tome
Business Reporter
THE banking sector has pledged to facilitate the mobilisation of capital required to finance viable tourism and hospitality projects, as the country prepares to host the Intra-African Trade Fair (IATF) in 2029.
This comes as the Hospitality Association of Zimbabwe (HAZ) on Tuesday called for stronger collaboration between banks and the tourism industry to unlock the funding required to modernise hospitality infrastructure ahead of IATF 2029.
The Southern African country secured the right to host the permanent headquarters of the Intra-African Trade Fair Company (IATFCO). In addition, it will host the full-scale trade fair in Harare in 2029.
The continental showcase will run annually in Zimbabwe between 2029 and 2033.
The landmark decision positions Zimbabwe as a central trade hub and has sparked major national infrastructure upgrades, including hotel expansions and a proposed 15 000-seater convention centre at the Robert Mugabe Square in Harare.
Zimbabwe’s right to host the event is bound by a comprehensive Host Country Agreement with the African Export-Import Bank (Afreximbank), which bankrolls the event, the African Union and the African Continental Free Trade Area Secretariat.
The conditions require the Government to provide world-class infrastructure and policy guarantees for seamless continental business.
Bankers Association of Zimbabwe president Mr Solomon Nyanhongo said commercial banks were ready to support bankable projects designed to increase accommodation capacity, improve tourism infrastructure and strengthen the country’s ability to host the continental event.
Already, the Government is courting both local and international investors to finance the expansion of hotel accommodation, conference facilities and supporting infrastructure after Zimbabwe secured the right to host the headquarters of IATFCO and its annual fairs.
The banking sector’s commitment complements the Government’s broader strategy to leverage IATF 2029 to reposition Zimbabwe as a leading destination for meetings, incentives, conferences and exhibitions (MICE) tourism.
The tourism sector’s direct contribution to Zimbabwe’s gross domestic product (GDP) stands at approximately 10 percent, having gone up as high as 15 percent in recent evaluations.
Zimbabwe won the bid to host the headquarters of IATFCO during IATF 2025 in Algeria, beating bids from Burkina Faso, Cameroon, Malawi, Zambia and South Africa.
The IATFCO headquarters in Harare will result in regular continental trade fairs, investment forums and business conferences, increasing visitor arrivals and stimulating demand across hospitality, transport, aviation, logistics and professional services.
Industry estimates indicate that Zimbabwe will require more than 10 000 additional hotel rooms, mainly in the three-to-five-star category, to raise national accommodation capacity to about 27 000 rooms before the continental event.
Priority investment areas include hotel and accommodation expansion, refurbishment of conference and exhibition facilities, tourism transport services, digital infrastructure, destination enhancement and sustainable tourism projects incorporating green technologies.
Zimbabwe must also provide convention and exhibition facilities with 50 000 square metres to 60 000 square metres of gross exhibition space, plenary halls for 5 000 attendees, VIP lounges and a modern press room.
Further, the agreement dictates the waiving of import and customs duties for all goods temporarily imported for exhibition, with a minimum duty-free allowance threshold of US$30 000 per participant.
Zimbabwe will also be required to facilitate border-crossing by offering a visa on arrival or complete visa waivers for participants and delegates travelling to and from the event.
According to Mr Nyanhongo, commercial banks are prepared to finance viable tourism projects capable of delivering long-term economic benefits.
He said preparations for IATF 2029 provide Zimbabwe with a unique opportunity to strengthen its position as a regional tourism, trade and investment destination, while creating infrastructure that will continue generating economic value long after the event.
Mr Nyanhongo described tourism as one of Zimbabwe’s most strategic sectors, noting that it is among the country’s largest foreign currency earners after mining and contributes significantly to employment creation, investment inflows and GDP.
“We are here and are ready and prepared to participate in making sure that this opportunity comes to fruition,” he said. “We are committed to supporting viable tourism investments.”
As such, achieving the country’s tourism ambitions requires substantial investments in hotel infrastructure, new accommodation facilities, conference infrastructure, transport networks and supporting tourism services.
Mr Nyanhongo acknowledged that financing long-term infrastructure remains one of the banking sector’s biggest challenges because short-term deposits dominate Zimbabwe’s banking system.
The mismatch between short-term liabilities and long-term infrastructure financing has historically constrained the banking sector’s ability to support capital-intensive projects such as hotels, convention centres and tourism infrastructure, which require long-term capital.
“More than 90 percent of bank deposits are demand deposits, making it difficult to finance long-term infrastructure projects,” he said.
To overcome this limitation, Mr Nyanhongo said banks were increasingly pursuing blended finance models by partnering with pension funds, development finance institutions, regional financiers and impact investors capable of providing patient capital to unlock long-tenor financing.
The banks have devised strategies to reduce lending risks through credit guarantees, political risk insurance and export credit agencies.
“The banking sector is actively engaging international and regional partners to increase the availability of longer-term funding and develop risk-sharing mechanisms that improve project bankability,” he said.
At the Tourism and Hospitality Investment Conference, dubbed “Meet the Bankers Conference 2026”, HAZ president Mrs Emmah Kativhu on Tuesday said the indaba sought to bridge the longstanding financing gap that has constrained investment in the tourism and hospitality sector.
The indaba brought together bankers, policymakers, development partners and tourism operators to discuss sustainable financing models for the industry.
Mrs Kativhu said tourism remains one of Zimbabwe’s strategic economic sectors, generating foreign currency, creating employment, stimulating infrastructure development and promoting the country’s international image.
She said the conference aligns with the objectives of the National Development Strategy 2 (NDS2), which identifies tourism as a key driver of economic transformation through increased investment, export growth, regional integration and improved destination competitiveness.
“Today marks a defining moment for our sector. We are gathered not merely for dialogue but for alignment — alignment between capital and capacity, between policy and practice and between ambition and execution,” said Mrs Kativhu.
She said, while Zimbabwe possesses significant tourism assets and opportunities, the country must ensure it is investment-ready and capable of delivering projects that meet international standards before hosting IATF 2029.
Mrs Kativhu said the hospitality industry requires substantial capital to refurbish and expand accommodation facilities, improve infrastructure and develop skilled human resources capable of delivering world-class service.
