Investor interest in Zimbabwe drops to US$622m despite US$15 billion goal

Despite efforts to promote Zimbabwe as an attractive investment destination, the Zimbabwe Investment and Development Agency (ZIDA) reported a decrease in new investment applications in the first quarter (Q) of 2024.

ZIDA Chief Executive Officer (CEO) Tafadzwa Chinamo said the decrease is partly due to the fall of mining investment.

“New licences issued for projects valued at US$622 million, down from US$760 million in Q1 2023. The drop is partly due to a slowdown in new mining projects,” Chinamo said.

The mining sector, traditionally a major draw for investors in Zimbabwe, accounted for only 18% of the projected investment value in Q1 2024, down from a dominant position in previous quarters.

“The services sector had the highest projected investment value, making up 25%. Construction was 2nd with 23%, and mining third at 18%.” Chinamo added.

While the number of new licenses issued was highest in manufacturing (41), the total value of those projects was only US$41 million, suggesting a trend towards smaller-scale operations.

China remained the dominant source of investment by value, accounting for a significant 77% of all approved licences in Q1 2024.

“We are conducting research for new source markets that have the potential to drive the desired investments into Zimbabwe,” said Chinamo, highlighting ZIDA’s efforts to diversify the investor base.

Looking ahead, ZIDA expressed optimism about its ability to attract US$15 billion in investment projects by the end of 2024. The agency is focusing on resource beneficiation, manufacturing, and technology transfer to achieve this ambitious goal.

ZIDA also highlighted its commitment to improving the investment climate in Zimbabwe through digital transformation initiatives.

The launch of a Do-It-Yourself Licensing Portal and the revamp of the agency’s website are aimed at increasing transparency and accessibility for investors.

“Our desire is to have all applications processed on the platform by the end of Q2 2024,” Chinamo said.