Zim urged to use credit, ESG ratings

THE International Credit Rating Agency (ICRA Zimbabwe) says the country must strengthen corporate governance, improve institutional transparency and embrace credible credit and Environmental, Social and Governance (ESG) ratings to unlock investment, reduce financing constraints and rebuild confidence in its economy.

Speaking at the ICRA–CGI Zimbabwe Symposium in Harare on Thursday, ICRA’s chief executive Ephraim Chawoneka said credible ratings could play a critical role in positioning Zimbabwe as a more attractive investment destination while supporting economic recovery, infrastructure development and private-sector growth.

“Markets depend on confidence. Investors and lenders need reliable information to assess risk, compare opportunities and make decisions,” Ephraim Chawoneka said.

The symposium, held under the theme “Governance and Markets: Integrating Credit and ESG Ratings for Strategic Decision Making in Zimbabwe,” brought together regulators, financial institutions, business leaders, academics and development partners to explore how stronger governance could improve the country’s investment prospects.

Chawoneka said the country’s economic ambitions required more than policy commitments, stressing the need for transparent institutions, reliable financial information and demonstrable accountability to convince investors and lenders of the country’s creditworthiness.

“Good governance strengthens that confidence through accountability, transparency, effective oversight and responsible conduct,” he said.

The remarks come as the government signals its intention to pursue a sovereign credit rating, a development ICRA described as an important step towards improving Zimbabwe’s engagement with international capital markets.

“A sovereign rating can provide investors with an external, comparable reference point for sovereign risk. It can help make economic progress legible to capital providers and support more informed engagement with development finance and capital markets,” he added.

For Zimbabwe, this could be particularly significant in addressing investor concerns surrounding sovereign risk, access to affordable long-term financing and the country’s ability to attract foreign direct investment.

The ICRA chief executive said ratings could also support better financing decisions across critical sectors, including infrastructure, construction, energy, agriculture and manufacturing, where access to affordable capital remains essential for productive investment.

“Credit ratings are not abstract labels. They are tools for improving the quality of decisions made by lenders, investors, boards, regulators, public institutions and business leaders,” he further noted.

The executive further emphasised that governance must become a central consideration in assessing institutional and corporate performance rather than being treated as a regulatory formality.

“Governance is not an accessory to credit quality or sustainability performance. It is one of their foundations, and it shapes the confidence on which markets depend,” said Chawoneka.

The partnership between ICRA and the Chartered Governance and Accountancy Institute of Zimbabwe (CGI Zimbabwe) was highlighted as an important step towards strengthening governance standards and improving the quality of financial and non-financial disclosures.

The symposium also examined the growing importance of ESG assessments as investors increasingly consider environmental sustainability, social responsibility and governance practices when allocating capital.

ICRA urged Zimbabwean institutions to develop locally relevant but internationally credible rating frameworks that reflect the country’s economic realities while meeting global expectations.

“Our task is not to copy foreign frameworks mechanically, but to interpret their principles carefully and place them within an African—and ultimately Zimbabwean—nexus,” he said.

The event follows the inaugural ICRA symposium held in October 2025 and underscores growing efforts to deepen Zimbabwe’s financial markets, strengthen institutional credibility and create conditions for sustainable economic growth.

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