Zimbabwe’s financial sector has received a major sustainability endorsement after the Reserve Bank of Zimbabwe (RBZ) secured certification under the Sustainability Standards Certification Initiative.
The certification, received last month from the European Council for Sustainable Development in Germany, recognises progress towards strengthening the country’s financial sector and improving its sustainability and resilience.
The milestone comes after years of challenges in Zimbabwe’s banking sector, including the closure of several financial institutions, which affected public confidence in the financial system.
Economic analyst Malone Gwadu said the certification reflected improvements in the stability of the financial sector.
“Our financial sector has faced its fair share of challenges since then, which even saw many banking institutions going under, but the situation has vastly improved, with all banks now financially stable, which then has been recognised by the European Council for Sustainable Development,” he said.
Mr Gwadu said the recognition could help strengthen confidence in the sector and enhance its contribution to economic growth.
“This accolade means we have a sector that can spearhead the growth of the economy and at the same time builds confidence in the public,” he said.
Reserve Bank of Zimbabwe Monetary Policy Committee member Persistence Gwanyanya said the certification also reflected progress in monetary policy, particularly measures aimed at promoting stability in prices, the currency and the exchange rate.
“This speaks to policy efficiency, and the endorsement now paves way to drive economic growth and development,” he said.
The certification was further discussed last week at the inaugural Financial Sector Sustainability Summit, hosted by the central bank in conjunction with the European Council for Sustainable Development.
The summit reviewed progress made by Government towards building a safe and sound financial sector capable of supporting sustained economic growth and development.
The latest recognition provides an additional measure of progress in efforts to strengthen Zimbabwe’s financial sector, improve confidence and enhance the sector’s capacity to support productive economic activity.
