THE value of investments declined by 60,12% in the fourth quarter of last year to US$4,58 billion as the period did not get more high-value projects like the comparable quarter in 2023, a new report has revealed.
According to the Zimbabwe Investment and Development Agency (Zida), the decline in the value of investments was recorded despite 200 investment licences being issued during the period under review, up from the 149 in the comparable period in 2023.
The decline in the value of investments recorded during the period under review came after the local currency experienced a major devaluation in the third quarter, along with the market experiencing a tight liquidity squeeze.
In Zida’s Quarterly Report Q4 2024, the agency’s chief executive officer Tafadzwa Chinamo said there was still robust interest to invest in Zimbabwe.
“Interest from investors to come in the country remains strong with 200 investment licences issued in the fourth quarter, higher than the 149 issued in the same period in 2023,” he said.
“In terms of the amount’s investors committed to invest, Q4 2023 had a higher value of US$11,5 billion compared to US$4 586,99 (millions) in the fourth quarter of 2024. The decrease is attributable to several high-value projects in 2023.”
He added: “On the bright side we recorded an increase in the number of licences renewed during the quarter compared to the same period last year.”
Analysed by sector, the mining industry continues to attract the greatest number of investors, measured by the number of licences issued.
- Letters: Policy inconsistencies driving out, frustrating foreign investment
- Lithium exports to surpass gold, says Zida chief
- Cannabis farmers underestimated costs involved: ZIHT
- Zim’s cannabis hopefuls face EU blowback
Keep Reading
“In terms of value, investors are committing to invest in the real estate sector and have the highest value, accounting for 43,6% of the total projected investment for the quarter,” Chinamo said.
“The energy sector was next, accounting for 22,76% of the projected investment value for the quarter. In total, we recorded investments in 12 sectors, demonstrating the diversity of the Zimbabwean economy, an attribute we intend to showcase in the future.”
He said the government was committed to improving the investment climate and simplifying the business landscape.
“Adopting a whole of government approach, Cabinet tasked the Office of the President and Cabinet (OPC) to spearhead a project to improve the ease of doing business,” Chinamo said.
“The OPC in turn enlisted in Zida to lead the establishment of a Single Window for Investor Entry and Establishment (SWIEE). The SWIEE will provide investors, foreign and local, online access to all government services. This service addresses a need highlighted by investors in the Investor Sentiment Analysis Survey conducted by the agency in collaboration with the IFC (International Finance Corporation).”
He said the survey responses reflected an overall positive outlook on Zimbabwe’s investment prospects.
Zida finalised and approved new public-private partnership (PPP) guidelines by the PPP Committee.
“These guidelines will be presented to the Cabinet in Q1 2025 for adoption as the governing law for all public-private partnerships in Zimbabwe,” Chinamo said.
“PPPs are pivotal to advancing Zimbabwe’s infrastructure and these guidelines will bring clarity and confidence to all stakeholders involved in impactful projects.”
In the outlook, Zida will prioritise investment in innovation, technology and manufacturing with efforts to incorporate sound environmental, social and governance principles.
