Over our past two discussions we have spotlit two foundational aspects. First, that bankability is pivotal in determining whether a project gets funded. Second, were the capital stack’s core capital tiers with their varying expectations, risk tolerance, and return requirements. As an investor or opportunity owner, it is fundamental to appreciate those dynamics. In this discussion let us discuss what is happening right now. Let us explore what it means if you own a project in Zimbabwe or are looking to commit capital into one. Bottom line is, the capital stack is evolving. New forms of capital are becoming available in Zimbabwe. Thus, the central question for every opportunity owner in this market is the same. Is your project or opportunity structured & positioned rightly?

A Significant Shift Now Worth Considering

For much of the past two decades, conversations about investment in Zimbabwe have largely been centred on foreign capital (i.e. FDI). As in, diaspora remittances, donor funding, and often elusive DFI loans. This framing was understandable, but it was incomplete. It was assumed that Zimbabwe's domestic financial system had nothing meaningful to contribute to project finance. That assumption is now being tested. Let us explore two unfolding developments that are thought-provoking in that regard.

The first is the emergence of blended finance as an active instrument in Zimbabwe. Blended finance is no longer just a concept discussed at conferences. It is now being deployed. The United Nations, in partnership with Old Mutual Investment Group, has operationalized a blended finance fund targeting Zimbabwe's renewable energy sector. This involves concessional donor capital alongside private investment, targeting a scale of US$100 million. The fund is not simply just about clean energy. It is, in principle, also a proof of concept. It is demonstrating that blended finance can work in this Zimbabwean market. It is demonstrating that risk can be de-risked for the private investor(s). It is also indicating that DFI capital can effectively be mobilized domestically.

The second development pertains to the Insurance and Pensions Commission of Zimbabwe (IPEC). IPEC has introduced a new framework capping fees charged by pension funds. This is a move designed to improve member returns and improve the governance quality of domestic institutional capital. This matters because pension funds and insurance companies represent the largest pools of patient & long-term capital within Zimbabwe. The question has always been whether that capital can be channelled productively. As in, into real projects rather than just getting recycled into government securities.

These two dynamics are indicating that Zimbabwe's capital stack is evolving.

What Blended Finance Actually Requires

Blended finance is largely misunderstood or mischaracterized. Blended finance is a deliberate structuring technique which involves concessional capital. It essentially absorbs a disproportionate share of risk. That then makes a project or opportunity commercially viable for private investors who would otherwise not participate. The practical implication for opportunity owners is significant. Blended finance does not lower the need for comprehensive documentation. Rather, it raises it. A project seeking to attract concessional capital must typically demonstrate development impact i.e. social, environmental, or economic. It must also demonstrate governance credibility, financial viability and financial discipline.

In other words, the bankability requirements we discussed in our previous discussions become non-negotiable prerequisites. For investors, blended finance offers a more attractive risk-return profile. This is especially so for opportunities or projects that would otherwise carry unacceptable exposure. It effectively insulates the private investor. This is particularly relevant in a market like Zimbabwe.

That is because political and macroeconomic risk perception has historically suppressed investment appetite. The IMF's Staff Monitored Programme agreed in February 2026 is helpful towards addressing that. It indicates meaningful effort towards a reform trajectory. This will likely progressively open doors to concessional financing from multilateral institutions. Opportunities or projects that are investment-ready when that door opens wide will not be scrambling to put their documentation in order. They will be ready to move.

Domestic Capital Should Not Be Overlooked

Zimbabwe's pension and insurance industries manage significant pools of long-term capital. For most of the past decade, the productive deployment of that capital has been largely constrained. There have been three core factors behind this. Regulatory uncertainty, currency risk and a shortage of properly structured investment vehicles. A pension fund cannot merely just invest in a good story. It looks at solid evidence of legal, financial, and governance standards that meet fiduciary standards.

The IPEC fee regulation indicates that the domestic institutional capital market is maturing. This is improving governance and protecting returns. As such, fund managers will face increasing pressure to demonstrate productive asset allocation. The question then becomes, ‘where do they deploy?’ Government securities offer liquidity but limited return. Listed equities are a small pool. The logical next frontier is alternative assets. These are private equity, infrastructure, real estate, and project finance instruments. However, it is only effective provided those instruments are properly documented and ring-fenced.

This is no longer a distant horizon. It is the direction that Zimbabwe's institutional capital market is moving toward right now. Opportunity owners who understand this must begin to structure their deals with domestic institutional investors in mind, not only international ones.

What This Means For Opportunity Owners And Investors

You probably own a project or opportunity in Zimbabwe. It could be a mining asset, a renewable energy facility, an agribusiness or a real estate development. The conversation you now need to be having must shift. It can no longer just simply be about finding a foreign investor only. It is about whether your project is structured to appeal to the full spectrum of capital that is becoming available. Be ready to appeal to blended finance, domestic institutional money, and, in due course, concessional DFI capital.

That structuring conversation has several practical implications for you. You must ensure the completeness of your project feasibility and technical documentation. You must also ensure the credibility of your financial model. You should see to it that your ESG framework is robust. ESG is increasingly becoming imperative & non-negotiable. Your exit provisions must be clear and your legal architecture solid. That will allow different capital types to sit within the same deal at different tiers of the capital stack.

If you are a domestic or international investor the implication is equally direct. You must no longer continue to just wait for Zimbabwe to become a simpler market before deploying capital. Be an early mover, premised on an understanding of how to structure into a layered capital environment. By so doing, you will capture the most attractive opportunities. The risk premium that Zimbabwe carries is real. However, it is, in part, being actively reduced by the reform trajectory underway. Blended finance structures exist precisely to bridge the gap between that residual risk and investable return.

IHC's Role In This Landscape

At Investor Hosting Centre (IHC), our function is defined by this exact moment. We do not simply identify opportunities. We work to ensure that the opportunities we bring to market are structured to speak the language of the capital that is available. It does not matter that it is a DFI concessional facility, a domestic pension fund allocation, or a private equity participation from a foreign investor. We actively bridge the gap between bankable opportunities & capital.

The evolution of the capital stack is not a threat to opportunity owners or investors who are properly prepared. It is an expansion of what is possible. More types of capital mean more pathways to funding a bankable opportunity. None of those pathways is automatic though. They require preparation, structure and the kind of facilitation infrastructure that closes the gap between a viable opportunity and a funded one. We as Investor Hosting Centre (IHC) are specifically here to close that gap. The capital stack is evolving. The opportunities are real. The question for every opportunity owner and every investor in this market is whether you are ready.

At Investor Hosting Centre (IHC), our thrust is to bridge the gap between capital and credible, investment-ready projects. Our primary focus is on driving economic development in Zimbabwe and across Africa. Kindly go to investorhosting.com to sign up as an investor, opportunity owner or service provider. For more information you can email on info@investorhosting.com or call +2638677010683.