Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE manufacturing sector received the largest share, at 45 percent, of disbursed funds under the Targeted Finance Facility (TTF) as of 30 June 2025, reaffirming its pivotal role in Zimbabwe’s re-industrialisation and economic resilience agenda.
Introduced by the Reserve Bank of Zimbabwe (RBZ) in January 2025, the TTF is a strategic financing mechanism aimed at stimulating productivity in high-impact sectors.
According to the RBZ’s Mid-Term Monetary Policy Statement released on 31 July, total disbursements stood at ZiG420 million by the end of June, with an outstanding balance of ZiG350,4 million.
The manufacturing and agricultural sectors dominated allocations, receiving 44,82 percent and 34,73 percent, respectively, while the retail sector accounted for 17 percent.
Construction, energy, distribution and other services received marginal shares.
RBZ Governor Dr John Mushayavanhu said the facility has proved instrumental in driving growth across key productive sectors, adding that there is a need to extend financing further along the value chain.
“The Reserve Bank introduced the Targeted Finance Facility (TTF), financed from the pool of banks’ statutory reserves held at the Reserve Bank, to ensure a continued flow of credit to productive sectors,” said Dr Mushayavanhu.
“TTF has gone a long way in supporting the productive sectors of the economy, particularly agriculture, manufacturing and wholesale and retail.
“TTF will continue to be availed exclusively to productive sectors of the economy, except the retail sector.”
Highlighting the broader monetary environment, Dr Mushayavanhu noted that the money market has maintained a persistent daily long position, reflecting adequate liquidity.
“Banks are, therefore, encouraged to set trading limits for each other to avoid concentration of liquidity in a few banks and make lending available to other economic agents.
“In this regard, the Reserve Bank encourages value chain suppliers to access bridging finance from their bankers,” he said.
The TTF is widely seen as a strategic lever for structural economic transformation.
Analysts say the disbursement patterns reflect a deliberate policy shift towards building strong domestic industrial capacity, promoting import substitution and supporting exports.
Business strategist Mr Busani Malaba said the prioritisation of manufacturing highlights its foundational role in the economy.
“The manufacturing sector remains a cornerstone of Zimbabwe’s economy, contributing to job creation, foreign currency earnings, and the development of robust domestic value chains,” said Mr Malaba.
“Its importance is heightened by its strong backward and forward linkages with agriculture, mining, energy, and distribution sectors.”
He added that increased support to the sector improves Zimbabwe’s ability to produce competitively priced goods, reduce reliance on imports, and foster innovation through beneficiation and processing.
Industry expert Mr Amon Dube noted that the 45 percent allocation is expected to catalyse investment in machinery, technology, and working capital across key sub-sectors such as food processing, chemicals, textiles and metals.
“This aligns with the broader goals of the National Development Strategy 1 (NDS1), which places industrialisation at the heart of the country’s growth trajectory,” said Mr Dube.
“Through the TTF, the Reserve Bank is deploying targeted financing as a tool to achieve structural economic transformation. Unlike broad-spectrum lending models, the TTF specifically directs resources to sectors with the greatest multiplier effects.
“RBZ has reiterated its commitment to ensuring that the TTF continues to be accessed by sectors aligned with national economic priorities,” he said.
The TTF stands as a critical enabler of Zimbabwe’s quest for inclusive industrial development, job creation and long-term macroeconomic stability.
