Gibson Muridzi, Shepherd Dhliwayo, Belinda Dzvari
Abstract
This study investigates green lending strategies and their role in enhancing environmental sustainability among small and medium enterprises (SMEs) in Zimbabwe. The purpose of the research is to explore stakeholder perspectives on the key barriers, enabling factors, and institutional mechanisms that influence the adoption and effectiveness of green finance practices within the SME sector. Specifically, the study aims to: (1) identify the primary challenges SMEs face in accessing green finance, (2) examine institutional and policy-level enablers for green lending, and (3) propose a stakeholder-informed framework for optimising green lending strategies. A qualitative research approach was adopted, employing a case study design. Primary data were collected through semi-structured key informant interviews with 17 stakeholders, including representatives from financial institutions, government agencies, environmental NGOs, and academia. Thematic analysis was conducted using Atlas.ti to identify key patterns and themes. The findings reveal several structural and institutional challenges, including limited access to finance (100%), policy and regulatory ambiguity (82.4%), macroeconomic instability (70.6%), high transaction costs (58.8%), and knowledge gaps (47.1%). Stakeholders strongly advocated for tax incentives (94.1%), subsidies (52.9%), capacity-building programs (70.6%), standardised green finance frameworks (23.5%), and collaborative financing platforms. The study integrates stakeholder theory, institutional theory, and the resource-based view (RBV) to conceptualise a multi-dimensional framework that aligns financial, institutional, and technical resources. This research contributes to the green finance discourse in developing economies by offering practical insights into how stakeholder collaboration, regulatory reform, and institutional capacity can accelerate the adoption of sustainable practices in the SME sector. It also highlights the need for coherent policy frameworks, targeted incentives, and robust monitoring systems. The findings have implications for policymakers, financial institutions, and development partners working to scale