By Tonderai Godknows Mapfumo
HARARE – ZIMBABWE has faced significant economic challenges in recent years, characterized by hyperinflation, high unemployment, and increasing public debt. In 2026, the recognition of blockchain technology and big data as critical tools in enhancing economic stability, particularly within state-owned parastatals like the Zimbabwe Electricity Supply Authority (ZESA), has garnered considerable attention.
Blockchain is a decentralized digital ledger technology that records transactions across multiple computers, ensuring that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consent of the network. This immutability and transparency make it a powerful tool for governance.
Big Data refers to the vast volumes of structured and unstructured data generated every second from various sources. It encompasses the data analytics used to extract meaningful insights from these large datasets, which can guide strategic decisions in businesses and organizations.
The experience of countries like El Salvador highlights the potential of blockchain and big data. El Salvador’s adoption of Bitcoin as legal tender shows how digital currencies can provide financial inclusion and leverage technology to integrate into the global economy. By embracing these innovations, countries can attract foreign investment, create jobs, and improve financial systems—an encouraging prospect for Zimbabwe amid its current economic upheaval.
This article explores how these technological innovations can improve corporate governance, operational efficiency, and investor confidence, while also addressing debt clearance and share selling challenges.
Relevance to Economic Stability
Improving Corporate Governance
Blockchain technology presents a revolutionary approach to enhancing corporate governance in Zimbabwe’s parastatals. Its decentralized and immutable nature provides robust solutions to curb fraud and reduce corruption—a longstanding issue that has plagued state-owned enterprises. For example, in more than two decades, ZESA has faced allegations of mismanagement and corruption, undermining public trust and hampering its efficiency. By utilizing blockchain, all transactions and governance decisions can be recorded transparently, reducing opportunities for manipulation and ensuring accountability.
In addition to curbing fraud, adopting blockchain could tackle systemic issues like nepotism and political interference. These factors have historically undermined meritocracy within parastatals, contributing to inefficiency and operational dysfunction. By establishing a transparent chain of accountability, stakeholders—ranging from government officials to ordinary citizens—can monitor transactions, ensuring that decisions are made based on merit rather than personal connections. This change could foster a more equitable business environment conducive to economic growth.
Moreover, as evidenced in other countries where blockchain has been successfully implemented, such as Estonia and El Salvador, stronger corporate governance leads to greater compliance with regulations and improved overall performance. For Zimbabwe, a shift toward blockchain could signal a commitment to reform. Enhanced governance not only reassures domestic stakeholders but also serves to attract foreign investment, which is essential for revitalizing the economy. Transparent practices become a foundational necessity, allowing parastatals to reclaim investor confidence.
Operational Efficiency
Operational efficiency remains a critical priority for Zimbabwean firms, especially given the country’s limited financial resources. Blockchain’s smart contracts can automate various administrative tasks, such as reconciliations, fundamentally transforming how state-owned enterprises like ZESA operate. These contracts execute automatically when pre-defined conditions are met, significantly reducing the time and costs associated with manual processes. In a context where ZESA struggles with over Z$5.7 billion in debt, streamlining operations is not just beneficial; it’s imperative.
For instance, the implementation of blockchain could simplify the billing and payment processes for ZESA, which frequently deals with late payments and defaults from customers. By improving accuracy and speed through automation, operational overheads could be drastically reduced. This efficiency is crucial for a company battling payment irregularities amidst a challenging economic landscape, effectively ensuring that resources are utilized optimally.
Furthermore, by adopting blockchain technology, parastatals can minimize transaction costs associated with procurement and financial reporting. Simplifying these processes can free up capital for more critical expenditures. Zimbabwe’s economy, which suffers from infrastructural deficits, can benefit immensely when resources are redirected towards development projects rather than bureaucratic inefficiencies. The enhanced operational efficiency facilitated by blockchain could ultimately contribute to economic recovery, allowing for greater agility and responsiveness in the marketplace.
Restoring Investor Confidence
The necessity for restoring investor confidence in Zimbabwe’s economic landscape cannot be overstated. Transparent and auditable financial reporting enabled by blockchain creates an environment where investors feel secure in their transactions. Without transparency, foreign investors remain skeptical about the state-owned enterprises’ financial health, which hampers economic recovery. As of 2026, reports indicate a significant shortfall in foreign investment levels, primarily attributed to concerns regarding corruption and mismanagement.
Blockchain can help establish a framework where the historical problems of opacity and mistrust are gradually replaced with credible data and reliable operations. For example, the ability to provide real-time, verifiable information about financial conditions through blockchain can make parastatals more credible to banks and market investors alike. In practical terms, this shift means that investors can track the performance and reliability of their investments in ZESA, offering peace of mind and encouraging capital inflow.
Additionally, as investor confidence starts to rebuild, it creates a snowball effect—more investment leads to more projects, which leads to job creation and overall economic growth. A transparent transition to a blockchain framework will not only facilitate the required capital infusion but may also encourage investment in other sectors, ultimately supporting a broader economic revival in Zimbabwe. By reinforcing credibility, the government can mitigate risks and enhance economic prospects, showcasing the transformative potential of blockchain technology.
Leveraging Blockchain and Big Data to Bridge the Gap Between Audit and Action
The Current Challenge: The “Accountability Lag”
Currently, the oversight cycle faces a “Time-Value of Audit” problem. Auditor General (AG) reports often highlight irregularities 12–18 months after they occur. By the time Parliament reviews these flags, the assets may have depreciated, or the funds may be unrecoverable. Furthermore, without real-time data, parastatals may be undervalued or sold with “hidden” liabilities, leading to a loss for the taxpayer.
The Solution: A Synchronized Digital Framework
I propose a “Triple-Helix” model of oversight involving:
Mutapa Investment Fund: Management and Operations.
Auditor General: Real-time Verification.
Parliament: Immediate Legislative Oversight.
Role of Blockchain: “The Immutable Ledger”
Blockchain isn’t just for currency; it is essentially a trust machine. With real-time auditing capabilities, the AG can access a private blockchain where every transaction by a parastatal is recorded instantly. Smart contracts can be programmed to automatically trigger alerts or “freeze” certain high-value transactions if they don’t meet pre-set legal criteria (e.g., procurement thresholds). Anti-tampering features ensure that once a record is entered, it cannot be deleted or altered by any official, ensuring the integrity of the data before privatization.
Role of Big Data: “The Predictive Lens”
While blockchain records past activities, big data helps predict future outcomes. Efficiency analytics can be used to analyze vast datasets to identify patterns of waste or corruption that a human auditor might miss. Additionally, big data can track market trends to ensure that the Mutapa Investment Fund gets the highest possible market value for privatized assets and help Parliament see which parastatals are “red-lining” in real-time, rather than waiting for a printed report.
The “Mutapa Standard”
Through adoption of these technologies, Zimbabwe can set a global benchmark for how Sovereign Wealth Funds manage privatization. This ensures that value is preserved for the citizens, investors gain confidence in the transparency of the process, and Parliament is empowered with facts—not just forensics.
Debt Clearance and Share Selling
Addressing Information Asymmetry
Information asymmetry—a scenario where one party in a transaction possesses more or better information than the other—remains a significant barrier in Zimbabwe’s economic environment. This issue is particularly acute for state-owned enterprises like ZESA when trying to raise capital through share sales. Data mining and blockchain technology can bridge this gap, making financial conditions more transparent and credible to potential investors. The traditional barriers have hindered meaningful engagement between state-owned enterprises and financial institutions.
By utilizing data mining tools, ZESA can analyze and forecast market conditions, reducing the imbalance of information between itself and its potential investors. The insights gained through effective data analysis can assist ZESA in making informed strategic decisions that align with market dynamics. For instance, better understanding payment patterns from consumers can inform future investment strategies, making the company a more appealing prospect for banks and investors.
Moreover, blockchain’s ability to track financial performance in real time reinforces credibility and knowledge among market participants. When parastatals provide reliable financial data, they mitigate lenders’ concerns and can negotiate better terms for loans or attract more favorable investment conditions. This transparency is critical for transitioning towards sustainability, ensuring that state-owned enterprises like ZESA can remain operational and fulfill their vital roles in the economy.
Asset Tokenization
New financial technologies allow for the “tokenization” of assets, an innovative approach that can broaden access to capital through share sales. By representing state-owned enterprises’ shares as digital tokens on blockchain networks, ZESA can attract a wider pool of investors, including both individual and institutional players. In doing so, Zimbabwe can encourage capital inflows that have previously been stymied by traditional financial constraints.
The tokenization process transforms shares into digital assets that can be easily traded on blockchain platforms. This increased liquidity is vital in markets where illiquidity has discouraged investment. By facilitating access to shares through digital platforms, ZESA can position itself as a more attractive investment opportunity. For instance, although the company struggles with substantial debt, tokenization can provide a structured path towards capital generation, vital for addressing its financial challenges.
Additionally, the global trend towards digital asset investment means that Zimbabwe could benefit from an expanding market for tokenized shares. As institutional investors increasingly look for diversified portfolios that include digital assets, ZESA could leverage its unique position in this emerging field. Through strategic partnerships and innovative funding models, Zimbabwe can adapt to changing financial landscapes, ultimately enhancing economic resilience in turbulent times.
Managing Debtors
As ZESA faces a staggering debt book exceeding ZiG5.7 billion by late 2024, effective debtor management has become paramount. The mining sector alone owes ZESA approximately US$45.6 million, highlighting the urgent need for strategic measures to manage defaults and improve cash flow. Data mining and artificial intelligence present robust solutions to help utilities monitor debtor behavior and predict payment defaults, allowing for timely interventions before debts spiral into existential crises.
Through data-driven analysis, ZESA can identify patterns in customer payment histories. Understanding these patterns enables the authority to proactively engage with high-risk customers, offer payment plans, or initiate early interventions to prevent defaults. Such precision tools allow ZESA to transform its debtor management processes, ultimately enhancing its financial standing while supporting economic recovery efforts more broadly.
Moreover, leveraging data analytics can improve customer engagement strategies, thereby fostering loyalty and reliable payment patterns. Increased engagement fosters a collaborative environment where customers feel accountable and empowered to maintain their financial responsibilities. This community-centric approach can enhance ZESA’s revenues while stabilizing its consumer base, bolstering the utility’s prospects for sustainable growth.
Current Implementation Status in Zimbabwe
Regulatory Stance
Zimbabwe’s regulatory landscape presents a challenging environment for the widespread adoption of blockchain technology, primarily due to historical concerns over monetary sovereignty. While some sectors have successfully embraced blockchain applications, the government has generally taken a restrictive stance on public cryptocurrencies. This cautious approach hinders broader technological adoption that could significantly benefit state-owned parastatals like ZESA.
However, despite the regulatory constraints, there has been growing advocacy for using blockchain in institutional governance and financial reporting. Policymakers recognize that leveraging these technologies is becoming increasingly necessary for socio-economic development. For instance, regulatory frameworks must evolve to facilitate blockchain adoption in a way that protects national interests while promoting transparency and accountability within parastatals.
The urgent need for reform in the regulatory landscape cannot be understated. By allowing blockchain technology to be implemented within state-owned enterprises, Zimbabwe can set a precedent for modernizing its economic infrastructure. Regulatory clarity and support will be essential to ensure that innovations do not merely exist in isolation but are implemented effectively to spur economic recovery.
Infrastructure Hurdles
Despite the promising potential of blockchain and big data, Zimbabwe faces significant infrastructure hurdles that hinder successful large-scale applications in parastatals. Inadequate technological infrastructure dampens the potential benefits these innovations bring. Many state-owned enterprises like ZESA lack access to reliable internet and computational resources necessary for implementing blockchain solutions effectively.
To successfully harness the power of blockchain technology, investment in infrastructure is crucial. This investment must include upgrading internet connectivity, improving electrical supply reliability, and training personnel in emerging technologies. For Zimbabwe to realize the full benefits of blockchain, it is imperative that parastatals be equipped with the necessary tools and knowledgeable workforce required to effectively integrate and manage new systems.
Addressing these infrastructure challenges is not just a technical necessity but a socio-economic imperative. By enhancing the technological landscape, Zimbabwe can position itself as a forward-thinking country ready to embrace the digital revolution. Bridging the infrastructure gap will unlock the potential for blockchain and big data to contribute meaningfully to economic stability and growth.
Conclusion
The integration of blockchain technology and big data into Zimbabwe’s state-owned parastatals offers a pathway towards economic stability and recovery. By improving corporate governance, enhancing operational efficiency, restoring investor confidence, and addressing debt challenges, these technologies can mitigate long-standing issues while facilitating growth opportunities.
Moreover, by positioning blockchain and big data as solutions to bridge the gap between auditing and action, Zimbabwe can ensure real-time oversight, predictive analytics, and enhance the overall accountability framework. Investing in these solutions could be pivotal to revitalizing its economy and ensuring a sustainable future.
Tonderai Godknows Mapfumo is the Research and Advocacy Officer for COMALISO (Coalition for Market and Liberal Solutions) in Zimbabwe and an Associate of the Free Market Foundation.
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