Zimbabwe is seeking to overhaul how it funds development with officials and partners calling for a shift away from traditional aid towards investment-driven models that prioritise returns and sustainability. The new approach was outlined at a high-level meeting convened by the United Nations Development Programme in Harare, where stakeholders discussed the country’s proposed Country Programme Document for 2027–2031. Government officials argued that development support should no longer be treated as free aid but as financing that delivers measurable economic value.
Secretary for Presidential Affairs in the Office of the President and Cabinet, Tafadzwa Muguti said a fundamental shift in mindset was needed. “Currently, almost everything from development partners is treated as free. That’s where we are getting it wrong,” he said.
He proposed what he described as a “payback rule” urging that projects including village business units operate as commercially viable entities capable of generating returns. “We need to move away from social contracts towards commercial contracting so that output has economic value and a market,” he added. Business leaders echoed the call for reform highlighting structural challenges in the economy.
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Zimbabwe National Chamber of Commerce (ZNCC) chief executive Chris Mugaga said most local enterprises are small-scale and require tailored financing solutions. “Most businesses need less than US$600 000, which shows the economy is largely small-scale,” he said, adding that access to markets is just as important as funding.
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