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ZIDA issues US$4,7 billion licences
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Zimbabwe has recorded a major boost in investment interest, with the Zimbabwe Investment and Development Agency (ZIDA) issuing 207 new licences worth a combined US$4.7 billion during the first quarter of 2025. The figures, contained in ZIDA's latest quarterly report, reflect a 44.8 percent increase in licence issuance compared to the same period last year, underscoring growing investor confidence in the Second Republic's economic policies.
The report also highlighted 78 licence renewals with an estimated value exceeding US$363 million. ZIDA chief executive officer Mr Tafadzwa Chinamo said the growth in investment interest was largely concentrated in the mining, agriculture, and renewable energy sectors, with the agency's recent digital transformation playing a pivotal role in streamlining the investment process.
Mr Chinamo said the successful launch of ZIDA's digital investment licensing system at the end of March had been a significant milestone. "This new platform has enabled an end-to-end online process for licence application, processing and issuance," he said. "As a result, 207 new licences were issued during this period, marking a 44.8 percent increase compared to the first quarter of 2024."
Mining continued to dominate in terms of the number of licences, with 88 issued for projects worth US$906 million. However, it was the energy sector that recorded the highest projected investment value despite receiving fewer licence applications. Mr Chinamo also acknowledged a slight decline in the number of licences renewed on time, which dropped from 16.7 percent last year to 14.6 percent in the current quarter. In response, ZIDA has introduced automated renewal notifications and intensified follow-up efforts to ensure greater compliance.
The report revealed that 60 percent of actual investment inflows consisted of imported capital equipment, particularly for the mining and manufacturing sectors. Meanwhile, 11 percent of the inflows were attributed to foreign exchange equity. Mr Chinamo explained that this investment structure reflects the capital-intensive nature of projects in these key industries, where initial spending is typically directed toward high-end machinery and technology.
In alignment with its 2025 Strategy, ZIDA expanded its research-led promotional activities during the quarter. These included the release of a Priority Sector Research Paper and two policy and investment research studies aimed at improving the regulatory environment and strengthening investor facilitation. Mr Chinamo noted that investor interest remained especially strong in mining, agriculture and renewable energy, and that the agency continued to engage in strategic forums to promote sustainable investment and project development.
Investment activity was geographically diverse, with Harare Metropolitan accounting for the highest number of licences, while provinces such as Midlands, Mashonaland West, and Matabeleland North also attracted significant interest. Mr Chinamo emphasized that this broad distribution of investment demonstrates increasing confidence in Zimbabwe's overall economic direction.
As Zimbabwe continues to implement economic reforms and drive towards its Vision 2030 objectives, the first quarter investment figures are a promising sign of continued international and domestic investor engagement. ZIDA is expected to maintain momentum through sustained facilitation efforts and continued policy support from government.
The report also highlighted 78 licence renewals with an estimated value exceeding US$363 million. ZIDA chief executive officer Mr Tafadzwa Chinamo said the growth in investment interest was largely concentrated in the mining, agriculture, and renewable energy sectors, with the agency's recent digital transformation playing a pivotal role in streamlining the investment process.
Mr Chinamo said the successful launch of ZIDA's digital investment licensing system at the end of March had been a significant milestone. "This new platform has enabled an end-to-end online process for licence application, processing and issuance," he said. "As a result, 207 new licences were issued during this period, marking a 44.8 percent increase compared to the first quarter of 2024."
Mining continued to dominate in terms of the number of licences, with 88 issued for projects worth US$906 million. However, it was the energy sector that recorded the highest projected investment value despite receiving fewer licence applications. Mr Chinamo also acknowledged a slight decline in the number of licences renewed on time, which dropped from 16.7 percent last year to 14.6 percent in the current quarter. In response, ZIDA has introduced automated renewal notifications and intensified follow-up efforts to ensure greater compliance.
In alignment with its 2025 Strategy, ZIDA expanded its research-led promotional activities during the quarter. These included the release of a Priority Sector Research Paper and two policy and investment research studies aimed at improving the regulatory environment and strengthening investor facilitation. Mr Chinamo noted that investor interest remained especially strong in mining, agriculture and renewable energy, and that the agency continued to engage in strategic forums to promote sustainable investment and project development.
Investment activity was geographically diverse, with Harare Metropolitan accounting for the highest number of licences, while provinces such as Midlands, Mashonaland West, and Matabeleland North also attracted significant interest. Mr Chinamo emphasized that this broad distribution of investment demonstrates increasing confidence in Zimbabwe's overall economic direction.
As Zimbabwe continues to implement economic reforms and drive towards its Vision 2030 objectives, the first quarter investment figures are a promising sign of continued international and domestic investor engagement. ZIDA is expected to maintain momentum through sustained facilitation efforts and continued policy support from government.
Source - The Herald
