Business Reporter
THE Zimbabwe Investment and Development Agency (ZIDA) recorded a significant increase in new investment licences issued in 2024, after approvals reached a record 709, a 15 percent rise year-on-year.
This surge has been interpreted as a positive indicator of renewed investor confidence in the country.
However, a paradoxical element within the agency’s 2024 annual report reveals a 10 percent decline in the projected investment value, which fell to US$8,63 billion.
This disparity underscores the persistent influence of global economic headwinds impacting the full realisation of investment potential.
The Government, under President Mnangagwa, has streamlined investment processes through ZIDA to promote foreign and domestic investment by creating a more investor-friendly environment.
This involved consolidating previously fragmented investment-related entities and agencies, implementing a One Stop Investment Services Centre (OSISC) to simplify procedures, and enacting the ZIDA Act to provide a clear legal framework.
President Mnangagwa has championed the “Zimbabwe is Open for Business” mantra to encourage new investment and drive accelerated growth in line with Zimbabwe’s Vision 2030 targets of transforming the country into an upper-middle-income economy.
ZIDA chairman, Mr Busisa Moyo, commended institutional reforms undertaken by the agency, particularly highlighting the dramatic reduction in licence processing times.
He noted that the average processing period, which stood at 30 days in 2020, had been slashed to an impressive five days by December 2024.
Mr Moyo attributed this efficiency gain to comprehensive digitisation efforts, including the successful launch of the Do-It-Yourself Licensing Portal.
“This five-year milestone reflects ZIDA’s commitment to its mandate,” he stated, adding that it was “a testament to the daily dedication of Management and Staff.”
Furthermore, Mr Moyo emphasised the progress made on the Single Window for Investor Entry, a digital platform developed in collaboration with UNCTAD (United Nations Conference for Trade and Development), designed to streamline regulatory processes for investors.
ZIDA chief executive officer Mr Tafadzwa Chinamo drew attention to the resilience observed across several key sectors. Mining, he confirmed, maintained its dominant position, closely followed by the manufacturing and services sectors.
ZIDA chief executive officer Mr Tafadzwa Chinamo
Notably, the construction sector experienced a significant 52 percent surge, a development Mr Chinamo indicated was in direct alignment with Zimbabwe’s national infrastructure development objectives.
He also confirmed the approval of eight Public-Private Partnerships (PPPs) with a combined value of US$770 million, spanning critical areas such as energy, transport, and mining. Detailed data from the report indicates that while new licences rose to 709 from 615 in 2023, the projected investment value decreased from US$9,67 billion in 2023 to US$8,63 billion in 2024.
The report also showed a decline in licence renewals, which fell by 57 percent to 177. Concurrently, reinvestment by existing investors dropped by 66 percent to US$402 million. In terms of employment, the manufacturing and mining sectors were the primary drivers of job creation throughout the year, with employment figures peaking in the fourth quarter. The manufacturing sector accounted for 1 455 local and 54 foreign workers, while mining saw the creation of 1 676 local and 117 foreign positions.
The construction sector, buoyed by infrastructure projects, hired 663 local and 169 foreign workers in the fourth quarter. Conversely, the services sector experienced a sharp decline in employment after an initially strong performance.
Progress was also reported in the area of PPPs and Special Economic Zones (SEZs). ZIDA reviewed 120 PPP proposals, with eight ultimately receiving approval for implementation.
These include the US$263 million upgrade of the Harare, Nyamapanda Road and the US$67 million modernisation of the Chirundu Border Post.
Within the SEZs, significant commitments were secured, notably US$7,5 million for the construction of a cricket stadium in Masuwe and US$800 million allocated for energy and metallurgical infrastructure development at the Palm River SEZ.
Despite these advancements, the ZIDA report candidly flags several “structural barriers” that continue to impede investment. A significant 44 percent of operational projects cited unreliable electricity supply as a major challenge, while exchange-rate instability was identified as a key factor hampering the full realisation of investment. Zimbabwe has, however, experienced stable exchange rates since the establishment of the local currency ZiG.
In response, Mr Chinamo pledged “intensified investor aftercare” efforts aimed at proactively addressing and mitigating these operational challenges
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