Zimbabwe's economic reforms under President Mnangagwa have propelled the country to the forefront of regional financial compliance, making it a beacon for foreign direct investment (FDI).
Zimbabwe is ranked second in the South-Eastern Africa region, after Mauritius, in compliance with the Financial Action Task Force (FATF)'s 40 recommendations, marking a significant milestone in its journey towards economic revitalisation and achieving an upper middle-income economy by 2030.
The FATF's 40 recommendations serve as the global benchmark for combating money laundering and terrorism financing.
This comes as Zimbabwe is celebrating 45 years of independence buoyed by President Mnangagwa's economic genius which has seen Zimbabwe experiencing massive development through his philosophy of 'Nyika Inovakwa Nevene vayo" and "No one and no place to be left behind. "
The independence celebrations are being held under the theme." Zim@45: Devolve and Develop Together Towards Vision 2030".
Zimbabwe, scoring 36 out of 40, has emerged as a regional leader, second only to Mauritius, which is fully compliant with 40 out of 40 and now in the white list.
This achievement comes after the country was removed from the FATF grey list in 2022, signalling a vote of confidence in the country's financial systems.
The removal from the grey list also eliminated Zimbabwe's inclusion in the European Union's high-risk jurisdiction list, allowing its banking sector to re-establish ties with international financial institutions and attract global investors.
President Mnangagwa's economic policies have been instrumental in fostering this achievement, focusing on improving Zimbabwe's legal and institutional framework to combat financial crimes such as money laundering, tax evasion, and smuggling.
The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube and Reserve Bank Governor Dr John Mushayavanhu, taking a cue from the President, have stamped their feet to the ground to make sure the country has a clean sheet.
These efforts have not only enhanced the integrity of the country's financial systems, but also positioned Zimbabwe as a safe haven for investment funds.
Reserve Bank of Zimbabwe Financial Intelligent Unit (FIU) director general Mr Oliver Chiperesa emphasised the country's commitment to maintaining its standing in the global financial system.
"Having been removed from the FATF grey list in 2022, our focus now is ensuring we never return. This is about building a solid international reputation as a country with a clean and secure financial system," Mr Chiperesa said.
He highlighted the critical role of FATF compliance in attracting investors.
"Most reputable investors and international financial institutions only do business in countries where they are confident in the integrity of the financial system. Being on the grey list sends a negative message, suggesting that a country's financial systems are neither clean nor secure. By addressing these issues, Zimbabwe has demonstrated its commitment to global best practices, which directly benefits the nation's economy, " he said.
Mr Chiperesa further explained the broader benefits of combating money laundering, noting its impact on economic development.
"Money laundering arises from financial crimes such as corruption, smuggling, and illegal dealings in gold and precious metals. These activities divert resources that should be used for national development into the hands of a few.
"By curbing illicit financial flows, we ensure that funds are channelled towards government priorities and the development of the country," Mr Chiperesa said.
Zimbabwe's journey to compliance began with its last mutual evaluation assessment in 2015, which revealed significant gaps in its anti-money laundering framework.
These deficiencies led to the country being placed on the FATF grey list in 2019.
However, through swift and determined action, Zimbabwe addressed these issues within 18 months, earning its removal from the grey list by January 2022.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"The journey has not been easy, but it is one we were determined to take," Mr Chiperesa said.
"Our success in addressing the legal and institutional deficiencies highlighted in the 2016 report shows the Government's commitment to reform.
"This achievement is not just about ticking boxes; it's about making a real difference for Zimbabwe's economy and its people."
As Zimbabwe continues to strengthen its financial systems, the country remains optimistic about achieving full compliance with the FATF recommendations in the near future.
As the nation celebrates independence, the progress so far aligns with President Mnangagwa's vision of transforming Zimbabwe into an Upper Middle-Income Economy by 2030, a goal that increasingly appears within reach thanks to the Government's proactive reforms.
By fostering a stable and transparent financial ecosystem, Zimbabwe has positioned itself as a preferred destination for international investment, paving the way for sustained economic growth and development. --
