ZIMBABWE must adopt innovative financing to attract essential private investment and overcome a severe infrastructure deficit that stifles economic growth, experts have said.
The country faces a development deficit exceeding US$14 billion, which stems from years of underinvestment, limited fiscal space, and economic instability, leaving roads, energy networks, water systems, and housing projects unfinished or outdated.
Chronic budget constraints and reliance on public funds have further slowed new developments and maintenance.
Chameso Mucheka, a researcher and PhD candidate at Chinhoyi University of Technology, warned that severe fiscal stress and high debt burdens are crippling traditional infrastructure funding.
“Traditional public financing mechanisms are waning under severe fiscal stress and high debt burdens. The need to explore innovative financing mechanisms for infrastructure development is more critical than ever,” he said in his presentation at the recent 2025 Zimbabwe Economic Development Conference held in Bulawayo.
He said that the severe infrastructure deficit impeded economic growth, long-term development, and climate resilience.
“Significant funding is required, far exceeding public fiscal capacity, necessitating new financing methods. Innovative financing complements traditional funding, acting as an efficient conduit for low-cost borrowing and expanding investment opportunities,” Mucheka said.
“Attracting private sector investment is crucial but challenging due to an underdeveloped domestic financial market. Innovative financing is essential to attract private sector participation, particularly for non-commercially viable projects. Obstacles include high upfront costs, complex risk assessments, and a lack of standardised metrics.”
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This, according to him, requires a multi-faceted approach involving financial innovation, robust policy support, capacity building, and knowledge sharing.
“Zimbabwe must adopt diverse strategies, drawing from global successes and tailoring approaches to specific project needs,” Mucheka said.
Infrastructure Development Bank of Zimbabwe acting chief executive Willing Zvirevo said there was a need for the country to invest more in project preparation to create investment-ready projects for uptake by private sector investors.
