Online Reporter
Ivan Zhakata
Herald Correspondent
THE Government has made Environmental, Social and Governance (ESG) reporting mandatory for all listed firms in Zimbabwe, Finance, Economic Development and Investment Promotion Deputy Minister David Mnangagwa has said.
Speaking at the official opening of the Global ESG Reporting Workshop in Harare yesterday, Deputy Minister Mnangagwa said all entities listed on the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) were now required to submit ESG and sustainability reports beginning with the 2024 financial year.
“In line with Statutory Instrument 134 of 2019 and further guidance provided under ZSE Practice Note 16 and VFEX Practice Note 2, all listed companies are now mandated to submit ESG and sustainability reports for financial years beginning on or after the 1st of January 2024,” he said.
He said public entities were also expected to report under the Integrated Results-Based Management (IRBM) system, overseen by the Corporate Governance Unit in the Office of the President and Cabinet.
The ESG reporting obligations are part of a broader Government effort to entrench accountability, transparency, and sustainability in Zimbabwe’s public and private sectors as the country targets inclusive economic growth under the National Development Strategy 1 and Vision 2030.
“This workshop is not merely a dialogue. It is a call to action. If we are to grow the manufacturing and mining sectors — which are now among the biggest contributors to GDP — ESG compliance is no longer a choice. It is a necessity,” Deputy Minister Mnangagwa said.
He said the structure of the economy had shifted significantly, with manufacturing contributing 15.3 percent to GDP, mining 14.5 percent and financial services 10.8 percent, marking a move towards industrialisation and financial sector expansion.
The deputy minister also said the recent national economic census conducted by ZimStat led to the revision of Zimbabwe’s GDP to US$44.5 billion, up from US$35.2 billion in 2023.
He said the new figure reflected wider coverage of both formal and informal businesses.
Deputy Minister Mnangagwa urged authorities and stakeholders to create pathways to bring informal businesses into ESG frameworks so they too could benefit from global financial systems, many of which are now tied to sustainability standards.
He said Zimbabwe was already bearing the brunt of extreme weather events, which continue to disrupt agriculture, infrastructure and livelihoods.
“Zimbabwe has experienced severe droughts, floods and cyclones over the years, including the recent El Niño-induced drought in 2024. Climate change is no longer theoretical; it is real and affecting us now,” Deputy Minister Mnangagwa said.
He said Zimbabwe had responded through policy measures such as the National Climate Change Response Strategy (2014) and the National Climate Policy (2017), but urged developed countries to meet their financial and emissions commitments under the Paris Agreement.
The deputy minister also praised the Securities and Exchange Commission of Zimbabwe (SECZIM) for leading efforts to regulate ESG reporting and prevent greenwashing by companies.
“SECZIM is making sure listed companies meet disclosure requirements and provide accurate data on carbon emissions, climate risk and other sustainability metrics.”
He called for stronger institutional capacity across both the public and private sectors to implement ESG principles beyond just preparing reports.
“We must ask whether we have the right skills for this transformation, not just to report but to implement ESG practices in full. That is where the real work begins,” Deputy Minister Mnangagwa said.
The Ministry of Finance would continue to lead in driving ESG adoption and stressed the need for a regulatory framework that is fit for purpose.
“We want to come out of this workshop with a practical, implementable ESG framework that works for Zimbabwe,” he said.
