Sustainability reporting: Zimbabwe’s new strategic imperative for global competitiveness

Tonderai W. Mabambe

FOR years, Zimbabwean businesses viewed sustainability reporting as a “nice-to-have” — a glossy appendix to annual reports filled with feel-good stories about community projects and tree-planting ceremonies. How times have changed. What was once corporate window-dressing has become a strategic battleground, and Zimbabwe’s accoun­tants, regulators, and business leaders are waking up to a fundamental truth: in today’s global economy, the numbers alone no longer tell the full story.

Let us be honest. For decades, we Zimbabweans have prided ourselves on being a sophisticated financial reporting jurisdiction. Our accountants are world-class, our regulators are diligent, and our listed companies have largely played by the rules. But the world has moved on. The global financial ecosystem now de­mands something more than profit and loss statements. It demands transparen­cy on environmental impact, social re­sponsibility, and governance standards — the three pillars that have become the global passport for capital.

The message from the regulators has been clear. In November 2022, the Public Accountants and Auditors Board (PAAB), through the Minister of Finance, issued a resolution for early adoption of the IFRS Sustainability Dis­closure Standards. This was not a polite suggestion. It was a strategic declaration that Zimbabwe intends to compete. As articulated at the Zimbabwe Accoun­tants Conference in Victoria Falls in April 2026, the country is moving away from historical reporting that focuses solely on the numbers, towards embed­ding governance, environmental issues, and social issues into the fabric of busi­ness reporting.

The motivation is simple: sustain­ability reporting will upscale Zimba­bwe’s access to foreign markets, en­hance access to capital, and attract more foreign direct investment. In the global capital markets, sustainability reporting is no longer a differentiator it is a prereq­uisite. Investors are increasingly making decisions based on Environmental, So­cial, and Governance (ESG) perfor­mance. If Zimbabwean companies can­not speak the language of sustainability, they will not get a seat at the table.

The road ahead is being laid with careful deliberation. The PAAB has de­veloped a national sustainability report­ing roadmap, which aligns Zimbabwe’s corporate reporting framework with global sustainability standards, position­ing local entities to compete for interna­tional capital that increasingly demands ESG disclosures.

At the heart of this transition are two landmark standards: IFRS S1 and IFRS S2, issued by the International Sustain­ability Standards Board (ISSB). IFRS S1 sets out general requirements for the disclosure of sustainability-related financial information, requiring entities to disclose information about all sus­tainability-related risks and opportuni­ties that could reasonably be expected to affect their cash flows, access to finance, or cost of capital over the short, medi­um, or long term. IFRS S2 specifically addresses climate-related disclosures, requiring entities to disclose informa­tion about climate-related risks and opportunities, including physical risks, transition risks, and climate-related op­portunities. Together, these twin stan­dards form the backbone of the new disclosure regime, providing a global baseline that ensures consistency, com­parability, and credibility across juris­dictions.

The PAAB has prescribed IFRS S1 and S2 as the primary standards for sustainability reporting in Zimbabwe, signalling a clear commitment to inter­national alignment. This is not about compliance for compliance’s sake. It is about building a sustainable, competi­tive economy that can attract the invest­ment Zimbabwe needs for long-term prosperity and growth.

The world is not waiting for us to catch up. In the mining sector, the life­blood of our economy, the pressure is already immense. The discovery of crit­ical minerals such as lithium has ampli­fied the issues of sustainability reporting due to its role in the promotion of green energy technologies. Customers sourc­ing critical minerals from Zimbabwe are demanding that producers demonstrate that their minerals are being mined re­sponsibly, with no trace of environmen­tal degradation, pollution, or violation of human rights of communities.

This is not about international do-gooders imposing their standards on developing nations. This is about markets. The European Union’s Cor­porate Sustainability Reporting Direc­tive (CSRD) is now law, binding on EU countries but with implications for Zimbabwean companies or suppliers that are part of the value chain of these EU companies. The Organisation for Economic Cooperation and Develop­ment’s Due Diligence Guidance for Re­sponsible Gold Supply Chains is now a market reality for our gold producers. Development finance institutions, such as the African Development Bank, are also requesting that borrowers of private loans demonstrate that they are ESG compliant.

In other words, sustainability report­ing is not a choice. It is a condition of market access. Companies that fail to adapt risk losing their customers, their financing, and ultimately, their rele­vance.

Across Zimbabwe, forward-think­ing companies are already embracing the sustainability reporting revolution. In recent years, several organisations have published inaugural standalone sustainability reports, highlighting their progress across priorities including so­cio-economic contribution, gender di­versity, climate action, and circularity. Some have achieved significant mile­stones: women now occupy nearly half of management roles in some firms; greenhouse gas emissions have been reduced by over a quarter in certain op­erations; and waste recycling rates ex­ceeding 90 percent have been recorded, with some companies maintaining ze­ro-waste-to-landfill status. Others have become the first in Zimbabwe to receive international certification under global water stewardship standards.

This is not just about looking good. This is about demonstrating to inves­tors, customers, and regulators that Zim­babwean companies can compete on the global stage. Sustainability is at the core of operations for these forward-thinking firms, and the publication of sustainabil­ity reports reflects their commitment to responsible business practices, includ­ing transparency and accountability.

Similar progress is being made across sectors. Academic research has shown that there has been a marked in­crease in sustainability reporting over recent years among resource-based companies operating in Zimbabwe. This reflects a growing recognition that sustainability is not just about altruism it is about building a business model that can survive and thrive in a changing world.

Here is the most important point. For Zimbabwe, sustainability reporting is not a burden. It is an opportunity.

The PAAB’s roadmap, anchored on IFRS S1 and S2, positions Zimbabwe’s corporate reporting framework at the forefront of global best practice. Any investor wishing to invest in Zimbabwe will look at the financial statements first. Once there is transparency in financial reporting, investment attraction inevi­tably follows. By adopting these global standards, Zimbabwean companies sig­nal to the world that they are ready to compete not just on price, but on cred­ibility, accountability, and long-term value creation.

The country is also moving towards green industrialisation, where ESG compliance and institutional credit­worthiness are emerging as strategic enablers that can help Zimbabwe at­tract responsible investment, strengthen capital markets, and support long-term industrial growth. The National Devel­opment Strategy 2 (NDS2) explicitly targets sustainable growth by embed­ding ESG principles into its core the­matic areas.

In this context, sustainability report­ing becomes a tool for national eco­nomic transformation. It signals to the world that Zimbabwe is serious about transparency, accountability, and good governance. It tells investors that Zim­babwe is a safe place to put their money. It says that Zimbabwean companies can compete and win in the global market­place.

Financial statements should not be mere presentation. They must include analysis of the data presented and story­telling on how organisations can tweak certain figures to make a bigger contri­bution to the transformation of public entities and the public sector at large.

So, here is the challenge for Zimba­bwean business leaders: embrace the change.

The regulations are coming. The ex­pectations are rising. And the opportuni­ties are there for those who seize them. Sustainability reporting is no longer a “nice-to-have.” It is a “must-have.” It is the price of entry into the global econo­my. And for those willing to invest the time and resources, it is also the path to a more resilient, sustainable, and pros­perous future.

The road ahead is not easy. It re­quires new systems, new skills, and a new way of thinking. Many organisa­tions have long practised elements of sustainability, albeit informally and the challenge now is to measure, structure, and report these activities formally, in line with the rigorous requirements of IFRS S1 and S2.

l Mabambe is a IFRS, IPSAS sustain­ability expert and IPSASB SIF com­mittee member