GREEN FINANCE AND SME INCLUSION IN ZIMBABWE: EVIDENCE FROM THE MANUFACTURING SECTOR IN BINDURA

Green finance is increasingly recognized as a central instrument for advancing climate mitigation and sustainable development, yet its distributive effects remain poorly understood in developing economies where small and medium enterprises (SMEs) dominate industrial activity. This study examines access to green finance among manufacturing SMEs in Bindura, Zimbabwe, identifying the structural determinants of inclusion and the institutional mechanisms driving exclusion. A mixed-methods approach is employed, combining quantitative survey data from 36 manufacturing firms analyzed through binary logistic regression with qualitative evidence from key informant interviews with financial institutions and policy actors. The results reveal that green finance access is highly selective: firm size, collateral availability, and awareness are significant positive predictors of access, while smaller and asset-constrained firms are systematically excluded. Green finance is predominantly delivered through conventional asset-based lending models underpinned by risk perceptions that disadvantage SMEs, reinforcing credit rationing and information asymmetry. These findings challenge the assumption that green finance is inherently inclusive and suggest that current frameworks risk entrenching a dual transition in which only better-positioned firms participate. Policy reforms should prioritize risk-sharing mechanisms, SME-adapted financial instruments, and targeted information dissemination to ensure a more equitable and effective green transition.