Online Reporter
Martin Kadzere
THE Government should capitalise national development finance institutions and take full responsibility for financing critical infrastructure to crowd in private capital and bridge critical funding gaps across Special Economic Zones, energy, transport and water sectors, business and academic experts have said.
Speaking during an infrastructure panel at the Zimbabwe Industrialisation Conference and Expo (ZICE 2026) in Harare last week, Infrastructure and Development Bank of Zimbabwe (IDBZ) chief executive Mr Willing Zvirevo — who moderated the session — said while regional governments acknowledge the vital role of the private sector, capital mobilisation remains severely constrained.
Pointing to research by local think tank African Economic Development Strategies (AEDS), Mr Zvirevo highlighted that the primary bottleneck is the undercapitalisation of strategic state institutions, which limits the ability to leverage their balance sheets and de-risk major infrastructure projects for private investors.
“Strategic institutions that are supposed to catalyse development are not adequately capitalised.
“So, there is a compelling case really for Government to consider using various tools to strengthen the balance sheets of existing national development finance institutions so that they are able to leverage their balance sheets to attract capital at scale,” Mr Zvirevo said, stressing that capitalisation should include directly channelling state resources through its own DFIs.
Zimbabwe’s network of national DFIs — including the IDBZ, the Agricultural Finance Corporation (AFC Holdings) and the Small and Medium Enterprises Development Corporation (SMEDCO) — plays a pivotal statutory role in underwriting long-term economic expansion.
However, macroeconomic headwinds and balance sheet constraints have historically limited these institutions from fully leveraging international credit lines or absorbing large-scale project risks independently.
Strengthening their capital base is increasingly seen by analysts as essential to unlocking blended finance structures and establishing specialised project preparation funds.
Beyond balance sheet constraints, Mr Zvirevo pointed out that major State utilities — including national power utility ZESA and the Zimbabwe National Water Authority face a severe shortage of bankable projects.
“There is a general lack of investment-ready projects that are adequately prepared and packaged to meet the requirements of investors and lenders,” he said.
To unlock long-term private financing, Mr Zvirevo urged policymakers to prioritise project preparation and blended finance structures.
“In my view, the most important conversation is how we can utilise the limited public resources to catalyse private sector investment into infrastructure. The first one is for investment in project preparation so that investors have a wide selection of bankable projects to choose from.
“The second one is using public resources to co-finance high-impact projects alongside the private sector,” Mr Zvirevo added, noting that co-financing serves as a primary tool for de-risking infrastructure assets.
Contributing to the panel, economics scholar Prof Fulufhelo Netswera, deputy vice chancellor for research and postgraduate studies at the University of Venda in South Africa, argued that inadequate bulk infrastructure remains the primary reason many African SEZs fall behind global benchmarks like China’s.
Addressing these infrastructure gaps, Mr Gundo Maswime, chief executive of South Africa’s Musina-Makhado Special Economic Zone (MMSEZ), emphasised that African States must accept the reality of funding their own foundational utilities.
“In special economic zones, there is one truth that I think is very difficult for many countries to accept, especially on the continent. You will have to finance your own bulk infrastructure, because there is no direct model of relating your sewer reticulation lines to the profit that you make in the SEZ.
A lot of investors want to see that commitment from the state,” Mr Maswime said.
Illustrating the governance and financing model adopted at Musina-Makhado, Mr Maswime shared that the Limpopo Provincial government finances all underlying bulk utilities, allowing the SEZ entity to partner with investors on top-structure factory builds through long-term lease-to-own models.
He added that market recruitment for SEZs relies heavily on state delivery rather than pre-signed tenant commitments.
“The takeaway line that I normally use is: if we build it, they will come. Demarcate land, provide bulk infrastructure and aggressively recruit investors… When they see that it will be profitable for them, they will definitely come. Don’t hope for prior recruitment,” Mr Maswime advised.
