1 year: US$2 billion investment in Zimbabwe construction sector

ZIMBABWE’S construction sector has witnessed significant growth with total investments reaching US$2 billion from both local and foreign investors over the past year, aligning with the country’s Vision 2030 goals.

Cities and towns across the country, including Harare, Bulawayo, Gweru, Kwekwe, Mutare, Victoria Falls, and Zvishavane, are witnessing swift development, marked by the emergence of new commercial, industrial, and residential projects.

According to the Zimbabwe Investment Development Agency’s (Zida) Fourth Quarter 2024 report, the real estate sector is expected to attract even more investments this year. In the fourth quarter of 2024, the real estate sector had the highest projected investment value of US$2 billion, followed by the energy sector with a projected investment value of US$1,043 billion.

The president of the Zimbabwe Building Contractors Association (ZBCA), Dr Tinashe Manzungu, said the sector is on a positive trajectory, driven by long-term investment interests.

“The industry has experienced positive growth, driven by investors’ interest in long-term investments offered by the construction sector,” he said.

Zida has indicated that interest from foreign investors willing to set up base in Zimbabwe remains strong with 200 investment licences issued in the fourth quarter of 2024.

The number of investment licences issued increased by 19,04 percent compared to the previous quarter in which 149 licences were issued around the same period in 2023.

Dr Manzungu noted that the real estate sector has seen numerous projects, providing a significant boost to the construction industry.

“A lot of projects have been undertaken in the real estate sector which has further given a huge lifeline to the construction industry and the Zida statistics are by no way a surprise. The construction industry has also been a huge beneficiary of the huge real estate investments as many projects are sprouting across the country,” he said.

Dr Manzungu said there has been a surge in interest from Zimbabweans in the diaspora and international investors looking to invest locally.

“There is high demand for commercial and housing stands in Harare and across the country. We have locals, the diaspora, regional, and international investors keen to leave a footprint in the country, which positively impacts the real estate sector,” he said.

Dr Manzungu commended the Second Republic for implementing measures that attract investment in the real estate sector.

“As we continue into 2025, we anticipate seeing more investments in real estate. We expect to witness more joint ventures and public-private partnerships (PPPs), with projections reaching US$3 billion or even US$4 billion by the end of the year,” he said.

River Valley Property (Pvt) Ltd group chief executive, Dr Smelly Dube, attributed the sector’s expansion to President Mnangagwa’s “Zimbabwe is open for business” philosophy. She said the real estate boom is driven by rapid urbanisation, increased demand for affordable housing, Government infrastructure improvements, and growing foreign investment.

“Regional and international investors are aware of the fact that Zimbabwe is a great nation with various investment opportunities under the Second Republic.

“Zimbabwe is open for business and this has resulted in the construction of huge steel plants such as the Dinson Manhize Steel plant in Mvuma and also the recently commissioned US$3,6 billion energy industrial park in Beitbridge among other countless projects,” she said.