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The Zimbabwe Investment and Development Agency (ZIDA) has reported an increase in investment licenses issued during the fourth quarter of 2024. According to ZIDA’s quarterly report, 200 new investment licenses were issued during the period, representing a 19.04% increase from the previous quarter.
The growth in investment licences has been attributed to improvements in the licencing process, particularly the successful implementation of ZIDA’s online DIY (Do it Yourself) licensing portal, the portal has streamlined the application process, reducing paperwork and bureaucratic delays.
Since its launch in February last year, the DIY portal has facilitated 98.1% of all applications, demonstrating strong investor adoption of the efficient and streamlined method of submission. The average processing time for investment licenses has also decreased to less than five days.
However, despite the increase in investment licences, proposed investment values decreased by 60.12% compared to the same period in 2023 and by 34.22% compared to the same period in 2022. The decline is largely due to the inclusion of several high-value outlier projects in 2023, which skewed the overall proposed investment value for that year.
Harare Province remained the leading recipient of investment licences, driven by its well-developed ecosystem in sectors like manufacturing, construction, real estate, and services. In terms of investment value, Mashonaland Central Province attracted the highest proposed investment, constituting 46.41% of the total.
The real estate sector dominated the investments, with a proposed investment value of US$2 billion, accounting for 43.6% of the total. The energy sector followed closely, attracting US$1.043 billion in projected investments, representing 22.76% of the overall projection.
ZIDA has also finalized the Public-Private Partnership (PPP) guidelines, which are expected to provide clarity to both contracting authorities and their counter parties in the consummation of impactful projects. The guidelines are set to be presented to Cabinet for approval in the first quarter of 2025.
The agency plans to focus on attracting investment in innovation, technology, and manufacturing in 2025, with emphasis on sound Environmental, Social and Governance (ESG) principles.
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