Why economic governance matters more than ever

By Richard Ndebele

 

Zimbabwe is blessed with abundant mineral resources, fertile agricultural land, an educated population and one of Southern Africa’s most strategic geographical locations.

 

Yet these advantages alone cannot guarantee prosperity.

 

Around the world, countries with fewer natural resources have often outperformed resource-rich nations because they have built strong institutions, promoted transparency and embraced accountable leadership.

 

This is why economic governance matters.

 

The recent launch of Zimbabwe’s African Peer Review Mechanism (APRM) Economic Governance Review comes at an important time.

 

As the country pursues Vision 2030, discussions often focus on investment, industrialisation, infrastructure and economic growth. While these are important priorities, lasting economic transformation depends on something less visible but equally important—good governance.

 

Economic governance is often misunderstood as a matter for economists, auditors and policymakers. In reality, it affects every business owner applying for a licence, every investor assessing opportunities, every commuter travelling on public roads and every citizen expecting efficient public services.

 

Simply put, good governance creates confidence, and confidence attracts investment.

 

A practical example is the Beitbridge Border Post Modernisation Project. For many years, congestion at the border resulted in lengthy delays for commercial traffic, increased transport costs and reduced regional competitiveness. Following the modernisation programme, supported by improved infrastructure, digital systems and stronger coordination among government agencies, the movement of goods became significantly more efficient.

 

The project demonstrates an important lesson. Infrastructure alone did not improve border efficiency. Success also depended on better planning, coordinated institutions, transparent processes and effective public sector management. In other words, governance turned infrastructure investment into economic value.

 

The same principle applies across the economy.

 

When local authorities process investment applications efficiently, businesses invest with confidence. When procurement systems are transparent, taxpayers receive better value for public money. When public funds are managed prudently, governments are better positioned to deliver quality healthcare, education, water and other essential services.

 

Conversely, weak governance increases the cost of doing business. Delays in decision-making, inconsistent policy implementation, poor contract management and weak accountability discourage investment and reduce economic productivity.

 

This explains why international investors increasingly evaluate governance alongside financial returns. They ask fundamental questions. Are institutions predictable? Can contracts be enforced?

 

Are regulatory decisions transparent?

 

Is public financial management credible?

 

These questions are not simply governance issues; they are investment decisions.

 

Recent developments suggest that Zimbabwe is moving in the right direction. The International Monetary Fund has acknowledged progress under Zimbabwe’s Staff-Monitored Programme, particularly in fiscal discipline and reform implementation. While challenges remain, such recognition reinforces an important message: governance reforms are beginning to strengthen confidence in Zimbabwe’s economic management.

 

Similarly, Government’s continued digitalisation of public services illustrates how governance and technology can complement one another. ZIMRA’s expanding digital tax administration, online company registration systems and electronic procurement initiatives are not merely technological improvements. They are governance reforms that enhance efficiency, improve transparency and reduce opportunities for abuse.

 

Looking ahead, Zimbabwe’s National Artificial Intelligence Strategy presents another opportunity.

 

Artificial intelligence has the potential to improve agriculture, healthcare, mining, financial services and public administration.

 

However, AI can only deliver sustainable benefits if it is supported by strong governance frameworks that promote accountability, transparency, cybersecurity and ethical decision-making.

 

Technology without governance simply creates faster risks.

 

Good governance is not the responsibility of Government alone.

 

Corporate boards must strengthen oversight. Executives must lead ethically. Professional bodies must uphold high standards of competence and integrity. Regulators must apply laws fairly and consistently.

 

Citizens must also play their part by demanding accountability while fulfilling their own civic responsibilities.

 

Economic governance is therefore a shared national responsibility.

 

Perhaps the greatest lesson from the APRM Economic Governance Review is that governance should no longer be viewed merely as a compliance exercise. It is a strategic economic asset. It influences investor confidence, public trust, business competitiveness and ultimately the nation’s ability to create sustainable prosperity.

 

Countries no longer compete solely through mineral wealth, tax incentives or inexpensive labour. They increasingly compete through the strength of their institutions.

 

Zimbabwe undoubtedly possesses enormous economic potential. Unlocking that potential will require continued investment in infrastructure, innovation and human capital. But above all, it will require institutions that are transparent, accountable and effective.

 

The APRM Economic Governance Review should therefore challenge all of us—not only policymakers, but business leaders, professionals and citizens—to recognise that good governance is no longer simply good practice.

 

It is one of Zimbabwe’s most important economic assets.

 

Ndebele is Manager: Technical, Research and Quality Assurance at the Chartered Governance and Accountancy Institute in Zimbabwe (CGI Zimbabwe) and serves as Country Champion for the Pan African Federation of Accountants (PAFA) Sustainability Centre of Excellence. He writes on governance, sustainability and public financial management, with a focus on strengthening decision-making and institutional performance in African economies. Can be contacted on rndebele@cgizim.org