News / National
Zimbabwe licences US$9,7 billion investments
09 Feb 2024 at 05:01hrs | Views
THE Zimbabwe Investment and Development Agency (Zida) said this week it issued 615 licences to investors worth almost US$9,7 billion during the year ended December 31, 2023.
Tafadzwa Chinamo, chief executive officer at Zida, told the Zimbabwe Independent on Wednesday that the US$9,7 billion was almost double the year's target of about US$5 billion.
He said the outlook was promising, with one big investment proposal received during the final quarter of the year still being reviewed.
About 148 of these investment licences were issued during the fourth quarter, according to statistics released by Zida, which said the proposals during the final quarter were worth US$ 4,4 billion.
While the overall trend showed a rise in licenced investments from 2022 to 2023, the tourism sector appeared to attract comparatively less global attention.
The data indicated that the energy sector took the lead with an investment value of US$3,5 billion, closely followed by the mining industry with just over US$2,5 billion.
Zimbabwe's recent global attention can be attributed to significant discoveries in its resources sector, particularly in lithium, platinum, and gold.
Notably, an Australian firm recently announced a major gas find in the Zambezi Valley. As part of Zimbabwe's recovery strategy, the mining industry, along with manufacturing, tourism, and agriculture, is expected to play a central role.
Last year was expected to be a turning point for Zimbabwe's mining sector, when annual revenues were targeted at US$12 billion, from about US$3,2 billion five years ago.
The data showed that 119 licences were issued in the services industry, with investors promising to inject US$1,2 billion.
The report said US$1,9 billion worth of licences were issued in the construction sector, the bulk of them from foreign investors.
Resource-rich provinces, such as Mashonaland West and Masvingo, emerged as focal points for attracting investors, dominating in terms of licenced projects.
Harare Province, serving as an economic hub, recorded 312 licenced projects valued at about US$1,9 billion.
Mashonaland West Province recorded the biggest value of licenced deals, according to Zida, which said 37 investors applied to set up projects worth US$2,3 billion.
Chinamo attributed the trend to interest in the province's mining sector.
A total of US$1,8 billion worth of projects were licenced in Masvingo, with Manicaland Province attracting 21 projects worth US$1,5 billion.
Zida said it attracted investors from 47 countries during the review period, compared to 2022, when licences were issued to investors from 33 countries, including Zimbabwe.
China continued to dominate, having the highest number of investors, with a preference for the mining sector, followed by manufacturing.
It said China and Japan contributed the highest projected investment values in 2023.
"The regional distribution of investments underscores a pronounced concentration in Harare Province, signifying a strategic allocation of capital towards this economic hub," Zida said in the report.
"Predominantly, the investment landscape in this province is characterised by a focus on the manufacturing and services sectors, indicating a deliberate effort to capitalise on the economic potential and business opportunities inherent in these industries.
"This targeted deployment of investments aligned with a nuanced understanding of the economic landscape, where Harare Province emerges as a pivotal centre for fostering growth and development.
"The inclination towards the manufacturing sector underscores a commitment to industrial activities, capitalising on the region's infrastructure, skilled workforce, and logistical advantages.
"Simultaneously, the emphasis on the services sector indicates a recognition of the evolving dynamics of the contemporary economy, where service-oriented industries play a crucial role in driving innovation, enhancing efficiency, and meeting the diverse needs of a burgeoning consumer base," the report says.
It further states that: "As investors strategically position themselves in Harare Province, they are poised to leverage the synergies arising from a robust ecosystem that facilitates collaboration, innovation, and sustained economic expansion".
Tafadzwa Chinamo, chief executive officer at Zida, told the Zimbabwe Independent on Wednesday that the US$9,7 billion was almost double the year's target of about US$5 billion.
He said the outlook was promising, with one big investment proposal received during the final quarter of the year still being reviewed.
About 148 of these investment licences were issued during the fourth quarter, according to statistics released by Zida, which said the proposals during the final quarter were worth US$ 4,4 billion.
While the overall trend showed a rise in licenced investments from 2022 to 2023, the tourism sector appeared to attract comparatively less global attention.
The data indicated that the energy sector took the lead with an investment value of US$3,5 billion, closely followed by the mining industry with just over US$2,5 billion.
Zimbabwe's recent global attention can be attributed to significant discoveries in its resources sector, particularly in lithium, platinum, and gold.
Notably, an Australian firm recently announced a major gas find in the Zambezi Valley. As part of Zimbabwe's recovery strategy, the mining industry, along with manufacturing, tourism, and agriculture, is expected to play a central role.
Last year was expected to be a turning point for Zimbabwe's mining sector, when annual revenues were targeted at US$12 billion, from about US$3,2 billion five years ago.
The data showed that 119 licences were issued in the services industry, with investors promising to inject US$1,2 billion.
The report said US$1,9 billion worth of licences were issued in the construction sector, the bulk of them from foreign investors.
Resource-rich provinces, such as Mashonaland West and Masvingo, emerged as focal points for attracting investors, dominating in terms of licenced projects.
Harare Province, serving as an economic hub, recorded 312 licenced projects valued at about US$1,9 billion.
Mashonaland West Province recorded the biggest value of licenced deals, according to Zida, which said 37 investors applied to set up projects worth US$2,3 billion.
Chinamo attributed the trend to interest in the province's mining sector.
A total of US$1,8 billion worth of projects were licenced in Masvingo, with Manicaland Province attracting 21 projects worth US$1,5 billion.
Zida said it attracted investors from 47 countries during the review period, compared to 2022, when licences were issued to investors from 33 countries, including Zimbabwe.
China continued to dominate, having the highest number of investors, with a preference for the mining sector, followed by manufacturing.
It said China and Japan contributed the highest projected investment values in 2023.
"The regional distribution of investments underscores a pronounced concentration in Harare Province, signifying a strategic allocation of capital towards this economic hub," Zida said in the report.
"Predominantly, the investment landscape in this province is characterised by a focus on the manufacturing and services sectors, indicating a deliberate effort to capitalise on the economic potential and business opportunities inherent in these industries.
"This targeted deployment of investments aligned with a nuanced understanding of the economic landscape, where Harare Province emerges as a pivotal centre for fostering growth and development.
"The inclination towards the manufacturing sector underscores a commitment to industrial activities, capitalising on the region's infrastructure, skilled workforce, and logistical advantages.
"Simultaneously, the emphasis on the services sector indicates a recognition of the evolving dynamics of the contemporary economy, where service-oriented industries play a crucial role in driving innovation, enhancing efficiency, and meeting the diverse needs of a burgeoning consumer base," the report says.
It further states that: "As investors strategically position themselves in Harare Province, they are poised to leverage the synergies arising from a robust ecosystem that facilitates collaboration, innovation, and sustained economic expansion".
Source - the independent
