Zimbabwe attracts US$1.2 billion in investments in Q3 of 2024

Zimbabwe attracted investments worth US$1.2 billion during the third quarter of 2024, with 168 new licences issued to investors by the Zimbabwe Investment and Development Agency (ZIDA), according to a new report. The mining sector continues to lead in drawing foreign capital, securing 74 of these licences with a projected investment value of US$579.90 million.

This development underscores the success of the Second Republic's investor-friendly policies, which have fostered an environment conducive to business growth. Over the course of the year, Zimbabwe has seen a steady influx of multi-billion-dollar investments, signaling confidence in the country's economic reforms.

In his third-quarter report, ZIDA CEO Mr. Tafadzwa Chinamo highlighted a 9% increase in the number of investment licences issued compared to the previous quarter. The mining sector remains the dominant player, consistently attracting the most interest from investors across all three quarters.

"In total, 168 new licences were issued in the just-ended quarter, with a projected investment value of US$1.171 billion. It's encouraging to see that investors have fully embraced the online DIY Licensing Portal," said Chinamo. He added that, as of September 1, 2024, the digital portal became the sole method for investors to apply for ZIDA Investment Licences.

Apart from mining, the energy sector has also drawn significant interest, with both sectors playing a pivotal role in Zimbabwe's ongoing industrial and economic development.

Provinces Attract Major Investments

Zimbabwe's provinces, which now set investment targets in alignment with the government's devolution agenda, have been instrumental in attracting capital. The top-performing regions include Mashonaland West Province, which issued 14 licences valued at US$393.18 million, followed by Masvingo with three licences worth US$146.71 million, and Midlands with 24 licences valued at US$139.07 million.

Other notable regions include Bulawayo, which attracted seven new licences worth US$134.27 million, while Manicaland secured four licences valued at US$121.07 million. Harare led in the number of licences issued, with 83 new approvals valued at US$104.78 million.

"The Agency acknowledges the critical role provinces play in attracting investments, and we have seen marked improvements in the quality of project proposals submitted by local authorities," said Chinamo. ZIDA has also conducted workshops to equip provincial authorities and Rural District Councils (RDCs) with the skills necessary to develop bankable project proposals.

Regional Cooperation Boosts Investment

Mr. Chinamo noted that the 7th SADC Industrialisation Week, held prior to the SADC Heads of State summit in August, was a major catalyst for investment inflows. The event featured the Inaugural SADC Investment Forum, where experts from across the globe discussed regional industrial development and the promotion of regional value chains in key sectors.

"The discussions at the forum laid a strong foundation for future collaboration and investments that will undoubtedly drive our economies forward," said Chinamo.

PPP Policy Framework Nearing Completion

Chinamo also provided updates on the Public-Private Partnerships (PPP) Policy Framework, which was approved by the Cabinet in the second quarter. ZIDA is in the final stages of drafting guidelines that will govern all PPPs in the country, a process expected to be completed in the fourth quarter.

"PPPs are a key driver for infrastructure development and economic growth. These guidelines will ensure that contracting authorities achieve their goals in a cost-effective manner while providing private sector partners with a fair return on their investments," he said.

With the steady flow of investments, particularly in mining and energy, and the continued refinement of investment frameworks, Zimbabwe's economy is set to experience sustained growth as it capitalizes on both domestic and regional opportunities.