Zimbabwe has a well diversified financial sector. However, the contribution of the sector to economic activity has varied over different periods. This study examines the contribution of the financial sector to economic activity over four economic policy regimes since independence in 1980. These periods include 1980-1989 (controlled regime); 1990-1999 (liberalized regime); 2000-2008 (economic crisis period) and 2009-2011 (multicurrency period). The contribution is measured in terms of contribution to the gross domestic product and formal employment. The choice of these variables was determined by data availability and consistency. The study examines challenges facing the financial sector in the multicurrency period, which commenced in February 2009 and how these challenges have affected the sectors contribution to economic activity. The study used both primary and secondary data sources. The analysis suggests that the contribution of the financial sector to economic activity has varied over different economic policy regimes since 1980. The financial sector had the largest contribution to economic growth during the liberalized period, 1990-1999 and has had the least contribution in the multicurrency period. In terms of contribution to formal employment, the financial sector has contributed more in the economic crisis period (2000-2008) and in the multicurrency period (2009-2011). The analysis suggests that in the multicurrency period, the financial sectors contribution to economic growth has been negatively affected by lack of affordable long-term lines of credit; weak confidence in the financial sector, the Central Bank and Government; limited roles of the Central Bank and uncertainty in the economy.