We need resilient banks: RBZ

LIVINGSTONE MARUFU AND SAMANTHA MADE

Zimbabwe requires strong financial institutions that can withstand both domestic and global shocks while driving sustainable economic growth, Reserve Bank of Zimbabwe (RBZ) Acting Governor Dr Jesimen Chipika has said.

Speaking at a ZB Financial Holdings (ZBFHL) breakfast meeting celebrating its attainment of the Global Sustainability Standards Certification Initiative (SSCI) in the capital  Harare on Tuesday, Dr Chipika said the central bank is spearheading a renewal of the financial sector to ensure the country builds “resilient, profitable and sustainable” banks capable of supporting the productive economy.

“We are looking for the renewal of the financial sector in the country because a lot of threats are around, and we can easily lose our banks,” she said. “We may say there was ZB Bank when it’s no longer there. So we are building this renewal process to have strong financial institutions. These institutions must be profitable — the standards are so rigorous, they should generate a higher profit.”

Dr Chipika underscored that profitability must go hand in hand with resilience, noting that financial institutions face mounting risks from climate change, global political tensions, and post-pandemic disruptions.

“A lot of things happen. Remember where we are coming from — Covid-19, climate issues, all sorts of things are happening around us, political things globally,” she said. “It is really these strong institutions that we are looking for. But it’s not just for the sake of profits. We don’t license banks here to just make profits.”

The acting central bank governor said sustainability is now at the heart of the RBZ’s regulatory agenda, urging banks to balance growth ambitions with environmental stewardship and social impact.

“We are saying in the central bank-led sustainability drive, these strong institutions will support our companies correctly in a sustainable manner without overexploiting the natural resources of the country,” she said. “They must use minimum resources to get maximum growth so that we don’t destroy the next generation’s inheritance — we don’t want them to just see pit walls and sand soils because nobody cared about the natural assets driving our economy.”

Dr Chipika commended ZB Financial Holdings for becoming the first local financial institution to achieve SSCI certification, awarded by the European Organisation for Sustainable Development (EOSD) on September 25, 2025.

The certification, valid until 2028, affirms ZB’s alignment with international sustainability benchmarks in governance, management, technology, and stakeholder relations.

However, she warned that the certification should be seen as a starting point rather than an endpoint.

“While achieving this certification is a significant milestone, it only marks the beginning of an ongoing sustainability journey,” Dr Chipika said. “This should translate to notable impact — improved efficiency, profitability, and access to internationally related sustainability funds.”

She added that the RBZ and EOSD would monitor progress under the SSCI framework to ensure tangible outcomes for both the institution and the wider economy.

“Efficiency and profitability should improve, and we will be checking on that. EOSD will be checking on that, including improved access to internationally related sustainability funds. That will be good for our country. We want to see notable impact on the economy, the environment, and society at large.”

The SSCI framework focuses on three strategic areas — Sustainable Infrastructure Development, Financial Inclusion, and the Agriculture Value Chain. These aim to expand access to financial services for marginalised groups, promote renewable energy and digital systems, and support food security and job creation through sustainable farming initiatives.

Dr Chipika revealed that the majority of Zimbabwe’s banks are now moving in this direction.

“We are expecting more banking institutions to be SSCI-certified in the very near future,” she said. “So far, out of our 19 big banks in the country, 15 of them are already enrolled in the SSCI, because we want the whole financial sector to be moving together to bring up the country.”

ZBFHL chairperson Agness Makamure said the certification marks a new chapter for the financial group, positioning it to attract sustainability-linked capital and accelerate investment in key sectors such as agriculture and infrastructure.

“We, as a board, have taken deliberate efforts to ensure that sustainability is implemented across the whole group,” Makamure said. “What is happening at ZB Bank is what is happening at all subsidiaries. Look out for new things coming out of this certification.”

ZB Financial Holdings has already integrated Global Reporting Initiative (GRI) Standards into its sustainability reporting, reinforcing transparency and accountability across its operations.

The RBZ’s renewed focus on sustainability aligns with global regulatory trends pushing banks to manage environmental, social, and governance (ESG) risks more rigorously.