The Zimbabwe Investment and Development Agency (ZIDA) has released its Quarter Four (Q4) report for 2024, offering a detailed overview of the nation’s investment dynamics.
As Zimbabwe strives to establish itself as a competitive destination for foreign and local investment, the report provides a comprehensive examination of the country’s progress, including legislative reforms, sectoral performance, digital transformation, and regional investment trends. This analysis offers a deep dive into the achievements and challenges outlined in the report, contextualising Zimbabwe’s economic ambitions and policy initiatives for a global audience.
A critical development from Q4 2024 was the finalisation of Public-Private Partnership (PPP) Guidelines. These guidelines, approved by the PPP Committee, establish a structured framework for collaboration between the government and private sector entities, focusing on infrastructure development in sectors such as transport, energy, and housing. This framework is designed to provide clarity, transparency, and accountability, which are crucial for attracting private capital to high-impact national projects. With plans to present the guidelines to the Cabinet for final approval in early 2025, Zimbabwe is positioning itself to close its infrastructure funding gap and accelerate economic growth.
The importance of these guidelines cannot be overstated. Infrastructure has long been a bottleneck for economic development in Zimbabwe. Whether it is roads, power generation, or urban housing, the gap between demand and capacity remains significant. By formalising PPPs, Zimbabwe is not only diversifying its financing models but also showcasing its commitment to fostering partnerships that align with international best practices. However, the success of these initiatives will depend on the government’s ability to build trust among investors. Ensuring consistent policy application and addressing historical concerns around governance and bureaucracy will be pivotal.
ZIDA’s digital transformation agenda is another highlight of the Q4 report. The agency’s “Do It Yourself” Licensing Portal has proven to be a game-changer, with 98.1% of licence applications initiated and processed online during the quarter. This shift towards digitalisation has significantly reduced processing times, with most applications being completed in less than five days. Such efficiency aligns Zimbabwe with global trends in investment facilitation, where speed, transparency, and ease of doing business are paramount.
While the portal represents a major leap forward, its impact must be contextualised within the broader digital infrastructure landscape in Zimbabwe. Internet penetration and connectivity in rural and underserved areas remain challenges, potentially excluding certain stakeholders from reaping the benefits of this transformation. For digitalisation to be truly impactful, it must be accompanied by efforts to bridge the digital divide. Ensuring that investors across all regions can access and utilise this platform will be crucial for sustaining momentum.
The report’s analysis of sectoral investment performance offers valuable insights into the diversification of Zimbabwe’s economy. Mining remained the most active sector by volume, attracting the highest number of licences issued. Zimbabwe’s rich mineral reserves, including gold, platinum, and lithium, continue to make it an attractive destination for resource-based investments. However, in terms of financial commitment, the real estate sector dominated, accounting for 43.6% of total projected investment. This was followed by the energy sector, which contributed 22.76% of total investment value.
The surge in real estate investment reflects growing demand for urban infrastructure and commercial developments, underpinned by Zimbabwe’s urbanisation trends and the government’s focus on modernising key cities. Similarly, the energy sector’s performance signals increased interest in renewable energy and power generation projects, which are vital for addressing the country’s persistent energy shortages. Investments in these sectors are not only critical for improving the quality of life but also for enabling industrial growth and export competitiveness.
Geographically, the report reveals a nuanced distribution of investment activity across Zimbabwe’s provinces. Harare, the capital, led in terms of the number of licences issued, with 84 licences accounting for a projected investment value of over US$542 million. However, Mashonaland Central emerged as a surprise leader in terms of financial commitment, attracting US$2.1 billion in investment. This regional diversity is a promising indicator of Zimbabwe’s efforts to decentralise economic opportunities. Provinces such as Matabeleland North and South also recorded notable investment activity, albeit with fewer licences.
The regional distribution of investments highlights a critical question: how prepared are these provinces to absorb and maximise the potential of incoming investments? While decentralisation is a welcome trend, it must be matched by capacity-building initiatives at the local level. Strengthening infrastructure, administrative frameworks, and workforce skills in less-developed regions will be essential for ensuring that these investments translate into tangible economic and social benefits.
To provide expert insight into Zimbabwe’s progress, Dr. James Moore, a specialist in emerging markets at the London School of Economics, commented: “ZIDA’s Q4 2024 report highlights some promising trends, particularly in its emphasis on sectoral diversification and digital innovation. However, the significant drop in committed investment value compared to the previous year points to underlying structural issues. Addressing these concerns will require consistency in policy implementation and targeted efforts to attract large-scale, high-value investments. Zimbabwe’s strength lies in its resource base and its potential for regional integration—leveraging these assets while maintaining governance and transparency will be critical.”
Another standout initiative from the report is the development of the Single Window for Investor Entry and Establishment (SWIEE). This online platform consolidates all government services for investors into a single access point, simplifying administrative procedures and addressing long-standing bottlenecks. This initiative is particularly significant given feedback from an Investor Sentiment Analysis Survey, which identified cumbersome processes as a key deterrent for potential investors.
SWIEE represents more than a technical upgrade; it is a statement of intent by the Zimbabwean government to prioritise ease of doing business. For international investors, predictability and efficiency are critical. If implemented successfully, this platform has the potential to transform Zimbabwe’s investment climate, making it more competitive on the global stage. However, the effectiveness of SWIEE will ultimately depend on its user experience and the government’s ability to maintain transparency and accountability.
In conclusion, the ZIDA Q4 2024 report provides a balanced and detailed account of Zimbabwe’s investment landscape. It highlights critical achievements, including the finalisation of PPP guidelines, digitalisation milestones, and sectoral diversification, while also addressing areas that require further attention. For Zimbabwe to achieve its long-term economic goals, sustained reforms, regional capacity-building, and a commitment to inclusive growth will be essential. By building on the foundations outlined in this report, Zimbabwe has the potential to emerge as a dynamic and sustainable investment destination.
