Itai Ndongwe
HARARE – The Zimbabwe Investment Development Agency (ZIDA) reported a significant 60% decrease in total investment value in the fourth quarter of 2024 at US$4.6 billion from US$This decline is attributed to a reduced number of large-scale projects initiated during the latter quarter.
According to the ZIDA fourth-quarter report for 2024 there was a sustained increase in investor interest within the country. There was a notable rise in the issuance of investment licenses, with 200 licenses granted in Q4 2024, compared to 149 in the same period of 2023, marking a growth of 34.23%.
This increase is largely due to the successful implementation of fully digitalized operations in the fourth quarter. An impressive 98.1% of license applications were initiated and processed through the “Do It Yourself” Licensing Portal, resulting in an average processing time of under 5 days.
The report also highlights a substantial influx of foreign investment into Zimbabwe. Capital equipment imports reached US$. Additionally, foreign exchange loans and debts contributed US$36.72 million.
Here is the sectoral breakdown of the 200 new licenses issued:
- Real Estate: 1 license issued, projected investment value of US$2 billion (43.60% of total investment value).
- Mining: 91 licenses issued, projected investment value of US$592.42 million.
- Manufacturing: 47 licenses issued, projected investment value of US$629.2 million.
- Energy: 9 licenses issued, projected investment value of US$1.043 billion (22.76% of total investment value).
- Transport: 4 licenses issued, projected investment value of US$6.7 million.
- Construction: 12 licenses issued, projected investment value of US$15.97 million.
- Tourism and Hospitality: 6 licenses issued, projected investment value of US$31.25 million.
- Services: 18 licenses issued, projected investment value of US$22.39 million.
- Financial Services: 1 license issued, projected investment value of US$0.5 million.
- Agriculture: 6 licenses issued, projected investment value of US$104.08 million.
- ICT: 1 license issued, projected investment value of US$1.95 million.
The Agency reviewed fourteen investment proposals across various sectors, including water, real estate, manufacturing, agriculture, mining, renewable energy, and financial services, with private sector submissions during the quarter valued at US$1.2 billion. Additionally, the Agency assessed nine Public-Private Partnership (PPP) projects, bringing the total number of PPP projects considered this year to 46.
ZIDA is prioritizing the finalization of key digital frameworks, including those for Special Economic Zones (SEZs), Public-Private Partnerships (PPPs), investor matchmaking, and the Investor Grievance Response Mechanism (IGRM).
While the SEZ digital framework was initially scheduled for completion in Q4 2024, the go-live date has been postponed to Q1 2025 to ensure full alignment of operational and technical components with strategic objectives. Activities in Q4 focused on system testing and stakeholder training to ensure a smooth launch.
The PPP digitization initiative is progressing well, pending the finalization of PPP guidelines, which are essential for establishing standardized processes and ensuring regulatory compliance. The Agency anticipates seamless integration of PPP modules within the broader system architecture.
Meanwhile, the matchmaking platform has seen steady improvements in Q4, enhancing usability and stakeholder engagement. The platform has been optimized to facilitate better alignment between investors and businesses, creating a more dynamic interface for connecting opportunities with potential partners. Feedback from pilot users is shaping the final rollout plans, set for early 2025.
The IGRM process was successfully automated in Q4 through the implementation of the ZOHO Enterprise Resource Planning (ERP) tool, streamlining the grievance resolution workflow and enabling faster response times and improved tracking capabilities. The system became fully operational by the end of Q4 and has already proven effective in addressing investor concerns.
