Online Reporter
Oliver Kazunga
Senior Reporter
ZIMBABWE has formally applied to join the Asia Infrastructure Investment Bank (AIIB), a move expected to widen funding options for the productive sector and accelerate economic growth.
In an interview following his engagements with AIIB officials during the recent World Economic Forum in China, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said membership of the multilateral lender was not only intended to strengthen Government financing, but also to unlock affordable capital for private sector companies.
“We have expressed our interest to join, and our request is under consideration,” Professor Mthuli Ncube.
“We will continue engaging them as they come back to us on the next steps. It is important for Zimbabwe to have choices when it comes to development finance and the support is not just for Government-for the private sector, for our companies to be able to borrow from these banks to support their activities — that is where we are headed.”
Last year, the Government established an Industrial Development Fund (IDF) with an initial outlay of ZiG100 million to support high-growth value chains in the manufacturing sector.
The fund is designed to provide capital to strategic industries, driving value addition, import substitution, and job creation in line with the aspirations of the National Development Strategy 2 and Vision 2030.
The AIIB, which finances infrastructure and sustainable development projects across Asia and beyond, has emerged as one of the world’s fastest-growing multilateral development banks.
And thus, membership would broaden Zimbabwe’s access to long-term capital while complementing existing relationships with regional development finance institutions.
The Treasury Chief said the Government’s strategy was to diversify Zimbabwe’s sources of development finance by expanding partnerships with international financial institutions.
He noted that Zimbabwe already works with several regional development finance institutions and was now seeking to add the AIIB to that portfolio, giving both Government and business greater financing options.
Economic observers have said easier access to long-term financing could help local companies expand production, modernise operations, invest in new technologies and participate more competitively in regional and international markets.
Turning to the strategic role of the Victoria Falls Stock Exchange (VFEX) and the newly launched Victoria Falls International Financial Centre (VFIFC), Prof Ncube said the two institutions were designed to provide investors with a seamless environment for raising capital and conducting cross-border financial transactions.
He assured investors that companies listed on the VFEX were permitted to repatriate profits in hard currency.
“The rules are clear. Companies can repatriate their profits in hard currency once they have listed on the exchange,” he said
“That is the whole purpose of creating this financial centre — to ensure ease of transactions into and out of the country.”
He said Zimbabwe created a unique investment ecosystem by integrating an international financial centre with a stock exchange, allowing investors not only to enjoy an attractive operating environment but also to raise capital through an established market platform.
Meanwhile, Prof Ncube revealed that climate finance had emerged as a major area of interest during discussions with AIIB officials.
He said Zimbabwe would increasingly prioritise projects such as irrigation development and renewable energy to improve prospects of securing climate-related financing.
“Climate-proofing our economy is a critical part of our development agenda,” he said, adding that investment in climate resilience would strengthen the country’s capacity to withstand increasingly frequent weather-related shocks while supporting sustainable economic growth.
