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Foreign investment interest in Zimbabwe remains strong
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Foreign investor interest in Zimbabwe continues to grow, with 200 investment licences issued in the fourth quarter of 2024, according to the latest report by the Zimbabwe Investment Development Agency (ZIDA). This marks a 19.04 percent increase compared to the 149 licences issued during the same period in 2023.
ZIDA attributed the rise in licences to enhancements in the licensing process, particularly the introduction of the online DIY Licensing Portal. "With 98.1 percent of applications processed through the portal since its launch, investors have embraced this efficient method of application submission," ZIDA noted in the report released on Tuesday.
Despite the increase in the number of licences, the projected investment values for the fourth quarter of 2024 decreased significantly. The report highlighted that the total committed investment for Q4 2024 was US$4.59 billion, representing a 60.12 percent drop compared to US$11.50 billion in Q4 2023. The decline was attributed to high-value outlier projects received in 2023, which elevated the overall investment figures for that year.
ZIDA Chief Executive Tafadzwa Chinamo remained optimistic, citing an uptick in licence renewals. "On the bright side, we recorded an increase in the number of licences renewed during the quarter compared to the same period last year," he said.
The mining sector continued to dominate, attracting the highest number of licences with 91 approvals during the quarter, followed by 47 licences granted to the manufacturing sector. However, in terms of value, the real estate sector led with a projected investment of US$2 billion, accounting for 43.60 percent of the total investment value for the quarter. The energy sector followed with US$1.04 billion, representing 22.76 percent of the total.
"In total, we recorded investments in 12 sectors, demonstrating the diversity of the Zimbabwean economy—an attribute we intend to showcase in the future," Chinamo added.
The report underscores Zimbabwe's appeal to a wide range of investors, particularly in key sectors like real estate, mining, and energy. As the country continues to enhance its business environment, officials are optimistic about sustaining and increasing foreign investment inflows in the coming year.
ZIDA attributed the rise in licences to enhancements in the licensing process, particularly the introduction of the online DIY Licensing Portal. "With 98.1 percent of applications processed through the portal since its launch, investors have embraced this efficient method of application submission," ZIDA noted in the report released on Tuesday.
Despite the increase in the number of licences, the projected investment values for the fourth quarter of 2024 decreased significantly. The report highlighted that the total committed investment for Q4 2024 was US$4.59 billion, representing a 60.12 percent drop compared to US$11.50 billion in Q4 2023. The decline was attributed to high-value outlier projects received in 2023, which elevated the overall investment figures for that year.
ZIDA Chief Executive Tafadzwa Chinamo remained optimistic, citing an uptick in licence renewals. "On the bright side, we recorded an increase in the number of licences renewed during the quarter compared to the same period last year," he said.
The mining sector continued to dominate, attracting the highest number of licences with 91 approvals during the quarter, followed by 47 licences granted to the manufacturing sector. However, in terms of value, the real estate sector led with a projected investment of US$2 billion, accounting for 43.60 percent of the total investment value for the quarter. The energy sector followed with US$1.04 billion, representing 22.76 percent of the total.
"In total, we recorded investments in 12 sectors, demonstrating the diversity of the Zimbabwean economy—an attribute we intend to showcase in the future," Chinamo added.
The report underscores Zimbabwe's appeal to a wide range of investors, particularly in key sectors like real estate, mining, and energy. As the country continues to enhance its business environment, officials are optimistic about sustaining and increasing foreign investment inflows in the coming year.
Source - zimlive
