WB Zimbabwe Socio Economic Transformation Fund (ZISET)

The ZISET TF will support the implementation of the World Bank Group´s new Country Engagement Note FY25-26 which is structured around four objectives: (1) Reduce macroeconomic distortions and strengthen fiscal policy and economic governance, (2) Strengthen the enabling environment for an inclusive and resilient private sector, (3) Boost pro-poor social services and women´s empowerment, and (4) Promote energy transition and resilience to climate change and disasters. The specific development objective of ZISET TF is to promote inclusive growth and socio-economic resilience. The focus is on strengthening the conditions for citizens and private sector firms to benefit from and be resilient to shifts in a developing macroeconomic environment, as well as to withstand shocks, including those linked to climate change. The TF aims at supporting policy development and reforms to improve the enabling environment for private sector led economic growth, trade, and job creation, as we all as contribute to strengthening the systems for social protection for the poorest and most vulnerable. ZISET activities are organized under two pillars, with inclusion of underserved groups, such as women, girls and the extreme poor as a cross-cutting priority, to tackle social exclusion and fragmentation. Pillar 1. Supporting inclusive, private sector-led growth Activities under this pillar will promote economic transformation and creation of quality jobs by strengthening the private sector enabling environment, enhancing firm capabilities and competitiveness, facilitating cross-border trade, and promoting financial sector resilience and inclusion. Supporting women-led businesses and addressing gender gaps in economic opportunities will be prioritized across intervention areas, including the selection of value-chains with high concentration of women entrepreneurs, active engagement with women-led business associations, and tailoring of interventions to account for women´s reduced mobility and higher caring responsibilities. Key expected outcomes include: (1) Lower costs and streamlined licensing and compliance requirements for private sector, particularly in priority sectors. (2) Improved firm-level practices, enhancing productivity and competitiveness (3) Streamlined and lower cost of cross-border trade clearance procedures and systems Improved access to finance (4) Increased adoption of climate risk financial instruments (5) Strengthen and operationalize a new Green Industrial Policy Pillar 2. Building household resilience and womens inclusion Pillar 2 aims to bolster the resilience of the poorest and most vulnerable households and populations by improving the targeting, coordination, and resilience of social programs. Focus areas include strengthening and improving the targeting system for social protection programs by designing and operationalizing a social registry system and expanding the registry´s coverage to 20 percent of the population. Improving the shock-responsiveness of social protection programs and designing an improved the targeting system based on poverty and vulnerability data is also foreseen. In addition, activities will promote positioning of the social registry as a service platform across sectors, programs and financing sources to enhance harmonization and coordination in the sector. Key expected outcomes include: (1) Strengthening the Government of Zimbabwe capacity for implementation of the social protection system (2) Enhanced coverage of the social protection system (3) Improved shock-responsiveness of the social protection programs Depending on available funding to the TF, the ZISET also proposes to work on improving the design of and to pilot cash programs aimed at adolescent girls, as well as support activities that specifically target women micro-entrepreneurs to increase productivity, financial resilience and earnings.