Zimbabwe has officially secured admission into the New Development Bank, also known as the BRICS Bank, granting the southern African nation access to long-term multilateral financing for industrial expansion and infrastructure modernization, according to Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube.
Unlocking BRICS Bank Financing for Infrastructure
Headquartered in Shanghai, China, the New Development Bank was established in 2015 by the BRICS nations—Brazil, Russia, India, China, and South Africa—with an initial authorized capital of US$100 billion. According to Prof Ncube, membership in the multilateral institution provides an alternative avenue for development finance after more than two decades of limited access to concessionary lending from traditional international financial institutions due to sanctions. “Yesterday we were admitted…we are now a member of the BRICS Bank. So, you can now access capital from the BRICS Bank. We will make a formal announcement properly later,” Prof Ncube told delegates during a plenary session organized by the Ministry of Industry and Commerce, the African Economic Development Strategy, and ZimTrade.
Targeted Domestic Credit Facilities and Venture Capital
To complement external funding from the BRICS Bank, the Zimbabwean government is deploying targeted domestic financing tools administered through the Reserve Bank of Zimbabwe, according to Prof Ncube. These below-market interest rate facilities aim to stimulate industrial output and rebuild critical supply chains. The Industrial Development Fund has already financed 15 strategic projects, including pharmaceutical manufacturing initiatives. Additionally, the National Venture Fund provides equity financing to start-ups, with government participation capped at 15 percent and a mandatory five-year exit strategy to protect private enterprise. Businesses seeking expansion capital can also utilize the Zimbabwe Stock Exchange, the Victoria Falls Stock Exchange, and the upcoming Small and Medium Enterprises Stock Exchange in Bulawayo.
Did you know? Micro, small, and medium enterprises account for roughly 60 percent of Zimbabwe’s gross domestic product and about 70 percent of national gold production, with women owning 56 percent of these smaller businesses nationwide, according to Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa.
Aligning Trade Policy with Regional Integration
Foreign Affairs and International Trade Minister Professor Amon Murwira emphasized that the country's foreign policy strategy relies on open markets and economic diplomacy to boost industrial competitiveness. "If we want the AfCFTA to work, if we want SADC, or the Free Trade Pact to work, if we want Comesa to work, it means Zimbabwe must open its market first because you can’t expect other people to open markets for you when you are closing yours," Prof Murwira said. Streamlining tariff and non-tariff measures remains a priority for facilitating export growth across regional corridors.
Empowering MSMEs and Youth Through Skills Development
Small businesses and youth engagement remain central to the national economic transformation agenda, according to Cabinet officials present at the expo. Minister Mutsvangwa stressed that achieving Vision 2030 is impossible without integrating micro, small, and medium enterprises that drive key agricultural and food-processing supply chains. Meanwhile, Youth Empowerment, Development and Vocational Training Minister Tino Machakaire noted that practical skills training—supported by international partners like the United Nations Development Programme and the World Food Programme—is critical for curbing youth unemployment and addressing drug abuse by turning young people into job creators.
Frequently Asked Questions
What is the New Development Bank?
Commonly referred to as the BRICS Bank, the New Development Bank is a multilateral financial institution established in 2015 by Brazil, Russia, India, China, and South Africa to mobilize resources for infrastructure and sustainable development in emerging markets.
How will Zimbabwe benefit from BRICS Bank membership?
According to Prof Ncube, membership provides Zimbabwe with access to long-term, patient capital for infrastructure development and industrial expansion, helping bypass traditional constraints tied to conventional commercial lending.
What role do MSMEs play in Zimbabwe’s economy?
According to Minister Mutsvangwa, micro, small, and medium enterprises contribute about 60 percent of the country’s gross domestic product and account for roughly 70 percent of national gold production.
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