Trust attracts investment: CGI

STAFF WRITER

Trust is fast becoming the defining currency of investment decisions, with governance and accountancy experts warning that institutions that fail to build confidence among stakeholders risk losing access to capital and long-term growth opportunities.

Speaking at the ongoing Chartered Governance and Accountancy Institute of Zimbabwe (CGI Zimbabwe) Summer School in Masvingo, CGI Zimbabwe president Tendayi Kajanda, represented by council member Michael Mautsahuka, said strong governance and ethical leadership were now central to attracting sustainable investment in an increasingly uncertain global environment.

“Trust attracts investments,” Kajanda said, arguing that organisations must move beyond traditional measures of success and focus on building institutions capable of creating enduring value.

The CGI president said businesses and public institutions were operating in a complex environment characterised by economic uncertainty, technological disruption, climate risks, evolving regulations and rising stakeholder expectations.

“In such an environment, governance cannot remain ordinary. It must be courageous enough to confront wrongdoing, intelligent enough to anticipate change, and ethical enough to protect the interests of both present and future generations,” he said.

Kajanda said sustainable growth was not merely about expanding balance sheets or increasing output, but about strengthening institutions, improving lives and preserving opportunities for future generations.

“An organisation may report numerous profits while destroying stakeholder trust. A public institution may comply with procedures while failing to deliver meaningful services. A company may invest in technology while compromising privacy, fairness and human dignity. That is not sustainable growth,” he said.

He said good governance converted resources into results, authority into accountability and institutional ambition into public value, thereby strengthening confidence among investors, employees, customers, regulators and citizens.

Kajanda said technology was reshaping how organisations processed information, managed risks and made decisions.

Artificial intelligence, he said, presented significant opportunities for Zimbabwe and Africa across all sectors.

However, he warned that technology alone could not replace sound governance.

“Good governance goes far beyond technology. It requires boards that are strategically alert, independent in judgment, and courageous enough to challenge intelligent management,” Kajanda said.

He urged organisations to move away from compliance-driven approaches and instead build cultures where ethical conduct became the standard.

“Ethical leadership is rebuilt when profit commits with principle, when loyalty commits with truth, and when short-term convenience commits with long-term responsibility,” he said.

Kajanda said integrity had to become the leadership currency of modern organisations, noting that strong laws, policies, committees and internal controls could fail if leaders lacked ethical conviction.

“Trust is not a soft issue. Trust is an economic and institutional asset. Trust attracts long-term investment. Trust strengthens employee commitment. Trust protects organisational reputation. Trust builds public institutions’ legitimacy,” he said.

He challenged governance and accountancy professionals to lead the transformation by embracing innovation while safeguarding values.

“Let us harness artificial intelligence without outsourcing our conscience. Let us advance good governance not merely as a professional obligation, but as the foundation upon which the future prosperity of Zimbabwe and Africa will be built,” he said.

CGI Zimbabwe acting chief executive officer Tracy Mushonga urged members and students to uphold integrity while using continuous professional development opportunities to strengthen their organisations and the economy.

“We need to be people of integrity,” Mushonga said.

She encouraged participants to fully engage with the summer school, emphasising that the programme was not only about learning but also about building professional networks and sharing knowledge.

“We believe in your potential and we are confident that some of the nuggets that we get from continuous professional development will benefit you as individuals, your organisations and the country as a whole,” she said.