Zimbabwe must strengthen governance to attract investors
By the AFREEQUE newsroom, based on Financial Gazette (Zimbabwe)
Illustrative image · Darlene Alderson · Pexels · Licence PexelsRating agency ICRA Zimbabwe is calling on the country to improve governance, transparency, and its credit and environmental, social and governance ratings to attract investment. Chief executive Ephraim Chawoneka says these safeguards can reduce financing constraints and support economic recovery, according to the Financial Gazette.
Zimbabwe must strengthen corporate governance, institutional transparency and the quality of its credit and environmental, social and governance (ESG) ratings to attract investors, Ephraim Chawoneka, chief executive of the rating agency ICRA Zimbabwe, said. He was speaking on Thursday in Harare at a symposium organised by ICRA and the Chartered Governance Institute of Zimbabwe, the Financial Gazette reports.
According to Ephraim Chawoneka, credible ratings can help investors and lenders compare risks, reduce financing constraints and support economic recovery. They could in particular improve access to capital for infrastructure, construction, energy, agriculture and manufacturing.
The government is considering obtaining a sovereign rating, which would provide a comparable external benchmark for Zimbabwe’s financial risk and facilitate its dealings with international markets and development finance institutions. ICRA estimates that this approach could also address concerns over sovereign risk, the cost of long-term financing and foreign direct investment.
These recommendations come as SMEDCO, the public agency financing Zimbabwean small and medium-sized enterprises, targets assets of $100 million, announced on 30 October.
