Government, financial sector regulators and key players from academia and industry are drafting the Financial Sector Development Strategy (FSDS) to guide the transformation of the country’s financial sector and strengthen its stability and resilience to economic shocks.
The initiative comes as the financial sector grapples with declining liquidity, largely attributed to the adoption of hawkish monetary and fiscal policies aimed at stabilising the Zimbabwe Gold (ZiG) and containing inflation.
Reduced liquidity has limited banks’ ability to provide long-term financing to productive sectors of the economy, raising concerns over investment and economic growth prospects.
“Government officials, financial sector regulators and key players from academia and industry recently convened for a consultative workshop to contribute to the drafting of Zimbabwe’s Financial Sector Development Strategy,” the Ministry of Finance, Economic Development, and Investment Promotion said in its first quarter newsletter for 2026.
“The strategy will guide the transformation of the country’s financial sector over the 2026–2030 period in support of national development priorities.”
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Key participants at the workshop included the Reserve Bank of Zimbabwe, Zimbabwe Stock Exchange, Insurance and Pensions Commission, Securities and Exchange Commission of Zimbabwe, and the Confederation of Zimbabwe Industries.
The ministry said the strategy prioritises strengthening financial stability and resilience to economic shocks, restoring confidence in the banking and financial services sector, and deepening capital markets.
“The strategy also seeks to revitalise long-term savings to support investment, promote financial inclusion and innovation through technology and artificial intelligence and strengthen financial sector integrity in line with international best practices,” the ministry said.
It added that government would work closely with stakeholders during the implementation phase to restore confidence and reinforce the financial sector as a key pillar of national development and long-term economic prosperity.
Anchored on a “whole-of-government and whole-of-society” approach, the FSDS emphasises inclusive stakeholder engagement to ensure the strategy addresses critical challenges affecting the sector.
“The initiative aims to build a modern, efficient, stable and inclusive financial ecosystem that promotes macroeconomic stability and deepens the financial sector under NDS2 Pillar 1,” the ministry said.
In his address at the workshop, deputy Finance minister David Mnangagwa acknowledged that the financial sector continues to evolve in response to global economic changes and rapid technological advancements.
He said the forthcoming strategy would provide a clear road map for reform and growth in the sector, positioning the financial system to better support Zimbabwe’s development agenda.
