Zimbabwe’s headline GDP figures may position it among the region’s largest economies, but its banking sector tells a very different story — one marked by shallow deposits, limited credit, and constrained financial inclusion.
Speaking at a post-budget seminar hosted by the Confederation of Zimbabwe Industries (CZI) today, BancABC Executive James Wadi said Zimbabwe’s financial system is significantly smaller than those of regional peers such as Zambia and Mozambique, despite the country’s much larger reported GDP.
“Looking at GDP size, we are almost twice as big as Mozambique and Zambia,” Wadi said. “But when you look at deposits, the picture is quite different.”
He noted that Zambia has US$8.2 billion in deposits and US$4.1 billion in loans, while Mozambique holds US$11.7 billion in deposits and US$4.5 billion in credit. Zimbabwe, by contrast, has a total deposit base of just US$4 billion, with the top three banks accounting for only US$2 billion, and a national loan book of roughly US$1 billion.
“The low deposit levels indicate that a significant amount of money is outside the formal banking system,” Wadi said. “Credit levels are just 2.5% of GDP, meaning many businesses are struggling to access financing needed for growth.”
Based on Zimbabwe’s estimated US$53 billion GDP, Wadi argued that deposits should ideally be in the region of US$20 billion, supporting credit levels of around US$9 billion. Strengthening both, he added, is vital for enabling private-sector investment and expanding economic activity.
He also highlighted the stark disparities in banking infrastructure across the region. While the top three Mozambican banks operate nearly 450 branches and 1,260 ATMs, Zimbabwe’s top three banks collectively run only 65 branches and 110 ATMs.
“The size of the banking sector matters,” Wadi concluded. “A smaller system limits our ability to influence economic growth, and aligning policies to expand both deposits and credit should be a priority.”
The seminar comes amid ongoing public debate over Zimbabwe’s projected US$52 billion GDP for 2026, with economists warning that headline numbers may obscure deeper structural weaknesses — especially in the formal financial sector, where limited deposits, constrained lending, and low trust continue to undermine economic recovery.
