By Wallace Mawire
Zimbabwe is working on strengthening its Environmental, Social and Governance Reporting framework and come up with a clear Roadmap to help the private sector and other public entities to attract much needed investment for economic growth.
Deputy Minister of Finance, Economic Development and Investment Promotion Kudakwashe Mnangagwa said growing sectors like mining and manufacturing have to adopt ESG models which comply with international standards to grow the economy.
Minister Mnangagwa made the remarks in a keynote address at an Environmental, Social and Governance (ESG) Reporting Workshop convened by Enviroedge Consulting (Pvt) Ltd in Harare yesterday.
The work was held under the theme: Advancing ESG Reporting in Zimbabwe: Challenges, Opportunities and the Road Ahead.
He said the workshop marked the first in a series of engagements aimed at embedding a culture of public and private sector accountability and transparency through ESG and sustainability impacts and reporting in Zimbabwe.
Mnangagwa said the initiative will be steered within the framework of the Integrated Results-Based Management (IRBM) performance system, aligned to the Whole-of-Government approach spearheaded by the Corporate Governance Unit (CGU) in the Office of the President and Cabinet.
He said since the inception of the National Development Strategy 1 (NDS1) in 2021, real economic growth has averaged above 5 % with the exception of 2024, which was adversely affected by an El Niño-induced drought. “However, economic growth is expected to rebound in 2025 to 6 %, mainly driven by a recovery in the agriculture, mining and services sectors,” Mnangagwa said.
He said the recently completed Economic Census by the Zimbabwe National Statistical Agency (ZimStat) has led to a significant revaluation of GDP to US$44.5 billion from US$35.2 billion in 2023. He said the revision reflects improved coverage of formal and informal businesses and better measurement of economic activity across sectors.
Also according to Mnangagwa, the structure of the economy has also fundamentally changed with the manufacturing sector now leading at 15.3%, followed by mining at 14.5%, and financial services at 10.8%. “This marks a shift from the historical dominance of wholesale and retail trade, reflecting greater industrialisation and financial deepening key indicators of sustainable development,” he said.
He said there is need to ascertain whether all the economic players are adhering to environmental, social governance best practices.
Mnangagwa said it also calls for the need to interrogate the linkages of the country’s economic strategy with ESG ambitions. He said an economy that is growing and transforming structurally must also be held to high standards of environmental responsibility, social inclusion and governance excellence.
“It is against this backdrop of real progress and real challenges that today’s workshop takes on added significance. ESG reporting is not simply about disclosure it is about shaping an accountable, green and equitable future,” Mnangagwa said.
He added that the effects of climate change are no longer abstract and Zimbabwe has experienced increased extreme weather events, droughts, floods and cyclones that threaten ecosystems, agriculture, biodiversity and human security.
The events outlined include Cyclones Eline (2000), Japhet (2003), Deneo (2017), Idai (2019), Chalane (2020), Anna (2021), and Eloise (2022), as well as the recent El Nino induced drought in 2024 have significantly disrupted livelihoods and infrastructure, placing pressure on supply chains and increasing production costs, especially in energy-intensive industries.
He said the Government of Zimbabwe has proactively responded by crafting the National Climate Change Response Strategy (NCCRS) in 2014, followed by the National Climate Policy in 2017.
Zimbabwe is a signatory to the Paris Agreement and is committed to honour our obligations.
However, Mnangagwa said the advanced economies should lead in meeting their commitments, if the world is to achieve its climate ambition of reducing emissions and ultimately reverse the climate change.
He said there is need of laying the groundwork and addressing data and capacity gaps, analysing current and future climate scenarios, prioritising climate adaptation, enhancing planning capacity and mobilising resources, reporting, monitoring and updating national adaptation plans to ensure effectiveness and inclusivity.
Mnangagwa said in the realm of corporate and financial regulation in Zimbabwe, the Securities and Exchange Commission of Zimbabwe (SECZIM) has taken a leading role in promoting ESG and sustainability practices. SECZIM ensures that publicly traded companies meet disclosure requirements, prevent greenwashing and provide investors with transparent, comparable data on sustainability metrics, including carbon emissions and climate risks.
According to Mnangagwa the regulatory framework governing ESG and sustainability reporting in Zimbabwe comprises the Public Accountants and Auditors Board (PAAB), the Zimbabwe Stock Exchange (ZSE), the Victoria Falls Stock Exchange (VFEX) and SECZIM.
He said in line with Statutory Instrument 134 of 2019 and further guided by ZSE Practice Note 16 and VFEX Practice Note 2, all listed entities are now mandated to submit ESG and Sustainability Reports for financial years beginning on or after 1 January 2024. Similarly, public entities must report under the oversight of the CGU through the IRBM framework.
He urged participants and corporate sector representatives to work collaboratively to build ESG compliance and resilience which he said are essential to the full realisation of NDS1 and the forthcoming NDS2 and ultimately Vision 2030 adopted by the country.